Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$144.55 | %
Today's Range: 143.4501 - 145.06
Avg. Daily Volume: 1827300.0
12/02/16 - 4:00 PM ET

Financial Analysis


AIR PRODUCTS & CHEMICALS INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AIR PRODUCTS & CHEMICALS INC has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2463.02449.4
EBITDA ($mil)792.8753.2
EBIT ($mil)562.3518.6
Net Income ($mil)394.0344.5


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1501.3206.4
Total Assets ($mil)18055.317438.1
Total Debt ($mil)6225.25879.0
Equity ($mil)7079.67249.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin42.4240.29
EBITDA Margin32.1830.75
Operating Margin22.8321.17
Sales Turnover0.530.57
Return on Assets3.497.32
Return on Equity21.417.7
Debt Q4 FY16 Q4 FY15
Current Ratio1.310.8
Debt/Capital0.470.45
Interest Expense0.036.3
Interest Coverage0.014.29


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)216.55215.36
Div / share0.00.81
EPS1.841.58
Book value / share32.6933.66
Institutional Own % n/a n/a
Avg Daily Volume1679652.0944791.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.02 for the Chemicals industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 4.22 indicates a premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 5.24. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AIR PRODUCTS & CHEMICALS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
APD 19.86 Peers 28.02   APD 11.37 Peers 14.19

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

APD is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

APD is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
APD 19.79 Peers 20.30   APD NM Peers 2.18

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

APD is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

APD's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APD 4.22 Peers 5.24   APD 17.79 Peers -5.71

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

APD is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

APD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APD 3.14 Peers 2.21   APD -3.75 Peers -5.71

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

APD is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

APD has a sales growth rate that significantly exceeds its peers.

 

 

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