Air Products & Chemicals, Inc.

APD

Industrial Inorganic Chemicals

Mkt Cap

$59.65B

PE

25.93

Debt

$10.91B

Cash

$1.617B

EV

$68.94B

FCF

-$1.421B

Market Cap

$59.65B

P/E Ratio

25.93

Debt

$10.91B

Cash

$1.617B

EV

$68.94B

FCF

-$1.421B

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, manufacturing, electronics, magnetic resonance imaging, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

Sector

10-Q
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-K
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-K
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-Q
12/31/20
10-K
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-K
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-K
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-Q
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 11%

Earnings Stability 36%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Net Margin	13%	8.4%	37%	17%	20%	21%	20%	18%	18%	18%
ROA	9.9%	12%	7.7%	11%	12%	9.6%	9.3%	10%	9%	9%
ROE	17%	8.7%	29%	13%	15%	15%	15%	16%	15%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +19.03%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.02%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.12%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.39%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +15.01%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.26%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Debt FCF	7.14	3.77	2.85	4.24	3.40	11.14	9.38	33.52	-7.68	-7.68
Debt Equity	0.80	0.86	0.42	0.37	0.29	0.68	0.58	0.60	0.70	0.70
MIN
Graham Stability	-	-	100%	92%	100%	90%	100%	100%	100%	90%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -7.68.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.83.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.90.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	09-2016	09-2018	09-2020	09-2022	Trend
Revenue	7.7%	7.1%	12%	-0.78%	2.7%
Net Income	20%	9%	6.8%	2%	-10%
Stockholders Equity	12%	7%	8%	14%	0.11%
FCF	-	-	-	-	-16%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.74%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +8.96%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -10.07%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.98%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.11%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -16.49%.