Air Products & Chemicals, Inc. (APD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Dow, Inc.

Ecolab, Inc.

Linde Plc

Air Products & Chemicals, Inc.

Celanese Corp.

Avantor, Inc.

Westlake Corp.

Why is Air Products & Chemicals, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 5.33% of over the last 5 years

OPERATING CASH FLOW(Y) Lowest at USD 2,952.6 MM
ROCE(HY) Lowest at 10.26%
INVENTORY TURNOVER RATIO(HY) Lowest at 10.57 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.97%, its profits have risen by 73.3% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.97% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Air Products & Chemicals, Inc. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Air Products & Chemicals, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Air Products & Chemicals, Inc.

3.76%

-0.49

27.88%

S&P 500

21.51%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.34%

EBIT Growth (5y)

6.47%

EBIT to Interest (avg)

15.89

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.41

Tax Ratio

16.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

97.63%

ROCE (avg)

11.92%

ROE (avg)

19.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.75

EV to EBIT

31.16

EV to EBITDA

20.18

EV to Capital Employed

2.81

EV to Sales

7.35

PEG Ratio

Dividend Yield

2.17%

ROCE (Latest)

9.02%

ROE (Latest)

17.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,570.8 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.98

INTEREST COVERAGE RATIO(Q)

Highest at 2,391.35

RAW MATERIAL COST(Y)

Fallen by -1.62% (YoY

PRE-TAX PROFIT(Q)

Highest at USD 968.6 MM

NET PROFIT(Q)

Highest at USD 1,465.5 MM

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at USD 1,931.5 MM

DEBT-EQUITY RATIO (HY)

Highest at 123.72 %

EPS(Q)

Lowest at USD -6.47

Here's what is working for Air Products & Chemicals, Inc.

Net Profit

At USD 1,465.5 MM has Grown at 172.02%

over average net sales of the previous four periods of USD 538.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 2,391.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 5.98 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 4,570.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

Highest at USD 968.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 1,465.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -1.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Air Products & Chemicals, Inc.

EPS

Lowest at USD -6.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 1,931.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 123.72 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)