Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$148.99 -0.02 | -0.01%
Today's Range: 148.48 - 152.69
Avg. Daily Volume: 1,006,500
07/28/16 - 4:02 PM ET

Financial Analysis


AIR PRODUCTS & CHEMICALS INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AIR PRODUCTS & CHEMICALS INC has very weak liquidity. Currently, the Quick Ratio is 0.44 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.67% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2271.22414.5
EBITDA ($mil)744.5673.5
EBIT ($mil)512.4440.2
Net Income ($mil)-473.3290.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)313.1195.7
Total Assets ($mil)16810.817493.8
Total Debt ($mil)5818.05930.2
Equity ($mil)6916.67332.5


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.3439.33
EBITDA Margin32.7827.89
Operating Margin22.5618.23
Sales Turnover0.570.59
Return on Assets3.295.9
Return on Equity20.5414.11
Debt Q2 FY16 Q2 FY15
Current Ratio0.791.01
Debt/Capital0.460.45
Interest Expense36.235.5
Interest Coverage14.1512.4


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)216.08214.77
Div / share0.860.81
EPS1.741.34
Book value / share32.0134.14
Institutional Own % n/a n/a
Avg Daily Volume1040059.01526435.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.44 for the Chemicals industry and a discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 4.63 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 5.91. 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 22.71 Peers 24.44   APD 12.64 Peers 15.53

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

APD is trading at a valuation on par with 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 18.23 Peers 19.75   APD 0.83 Peers 2.43

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APD 4.63 Peers 5.91   APD 36.89 Peers 43.16

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.

 

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

However, APD is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APD 3.36 Peers 2.18   APD -7.20 Peers -6.08

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

APD significantly trails its peers on the basis of sales growth

 

 

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