Air Products and Chemicals, Inc.
Air Products and Chemicals, Inc. Fundamental Analysis
Air Products and Chemicals, Inc. (APD) shows weak financial fundamentals with a PE ratio of -189.02, profit margin of -2.73%, and ROE of -2.20%. The company generates $12.2B in annual revenue with weak year-over-year growth of -0.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -8.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze APD's fundamental strength across five key dimensions:
Efficiency Score
WeakAPD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAPD trades at attractive valuation levels.
Growth Score
WeakAPD faces weak or negative growth trends.
Financial Health Score
ModerateAPD shows balanced financial health with some risks.
Profitability Score
WeakAPD struggles to sustain strong margins.
Key Financial Metrics
Is APD Expensive or Cheap?
P/E Ratio
APD trades at -189.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, APD's PEG of -12.46 indicates potential undervaluation.
Price to Book
The market values Air Products and Chemicals, Inc. at 4.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.49 times EBITDA. This signals the market has high growth expectations.
How Well Does APD Make Money?
Net Profit Margin
For every $100 in sales, Air Products and Chemicals, Inc. keeps $-2.73 as profit after all expenses.
Operating Margin
Core operations generate -6.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.20 in profit for every $100 of shareholder equity.
ROA
Air Products and Chemicals, Inc. generates $-0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Air Products and Chemicals, Inc. generates strong operating cash flow of $3.34B, reflecting robust business health.
Free Cash Flow
Air Products and Chemicals, Inc. generates weak or negative free cash flow of $-2.81B, restricting financial flexibility.
FCF Per Share
Each share generates $-12.61 in free cash annually.
FCF Yield
APD converts -4.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-189.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How APD Stacks Against Its Sector Peers
| Metric | APD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -189.02 | 27.01 | Better (Cheaper) |
| ROE | -2.20% | 949.00% | Weak |
| Net Margin | -2.73% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.18 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.46 | 4.42 | Neutral |
| ROA | -0.81% | -6411.00% (disorted) | Weak |
APD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Air Products and Chemicals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.94%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-120.76%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-0.96%
Industry Style: Cyclical, Commodity, Value
Declining