Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$141.5 -0.37 | -0.26%
Today's Range: 141.1 - 142.14
Avg. Daily Volume: 1416500.0
02/17/17 - 4:01 PM ET

Financial Analysis


AIR PRODUCTS & CHEMICALS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AIR PRODUCTS & CHEMICALS INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.79% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1882.51866.3
EBITDA ($mil)589.7594.3
EBIT ($mil)383.6379.6
Net Income ($mil)299.8363.6


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)655.5279.1
Total Assets ($mil)15956.217260.3
Total Debt ($mil)4318.45817.8
Equity ($mil)7161.57367.1


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.9342.07
EBITDA Margin31.3231.84
Operating Margin20.3820.34
Sales Turnover0.570.53
Return on Assets3.557.62
Return on Equity19.3916.82
Debt Q1 FY17 Q1 FY16
Current Ratio1.210.78
Debt/Capital0.380.44
Interest Expense35.835.8
Interest Coverage10.7210.6


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)217.59215.65
Div / share1.720.81
EPS1.151.29
Book value / share32.9134.16
Institutional Own % n/a n/a
Avg Daily Volume1408831.01688671.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 37.43 for the Chemicals industry and a discount compared to the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 4.31 indicates a premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 6.12. 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 22.31 Peers 37.43   APD 12.03 Peers 15.39

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 20.96 Peers 20.73   APD NM Peers 1.83

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

APD is trading at a premium to 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 4.31 Peers 6.12   APD 11.57 Peers -15.44

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 significant 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 3.41 Peers 2.36   APD -1.63 Peers -3.25

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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