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Air Products & Chemicals Inc APD

Morningstar Rating
$238.41 +2.41 (1.02%)
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Company Report

Air Products Earnings: Full-Year Guidance Cut Due to China Slowdown and Lower Helium Volumes

Narrow-moat-rated Air Products’ fiscal first-quarter revenue of $2.997 billion and adjusted EPS of $2.82 both fell short of FactSet consensus estimates of $3.195 billion and $3.00. This shortfall was driven by a slowdown in China, lower helium volumes in the electronics end market, higher costs for a sale of equipment project, and the impact of Argentina’s currency devaluation. Management expects the softness in Asia and helium to persist in the near term, which led to a full-year adjusted EPS guidance cut from $12.80-$13.10 to $12.20-$12.50. Based on the more muted near-term outlook, we’ve lowered our fair value estimate to $288 from $314.

Price vs Fair Value

APD is trading at a 17% discount.
Price
$238.41
Fair Value
$622.00
Uncertainty
Medium
1-Star Price
$837.20
5-Star Price
$315.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Air Products is poised for rapid growth due to business opportunities that drive its ambitious $30 billion capital allocation plan.

Bears

After Air Liquide’s 2016 acquisition of Airgas and the Praxair-Linde merger in 2018, Air Products is a distant third in terms of market share among industrial gas majors and may struggle to regain share.

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News

Trading Information

Previous Close Price
$236.00
Day Range
$235.40239.51
52-Week Range
$212.24307.71
Bid/Ask
$236.75 / $241.50
Market Cap
$53.00 Bil
Volume/Avg
1.9 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
20.50
Price/Sales
4.27
Dividend Yield (Trailing)
2.94%
Dividend Yield (Forward)
2.94%
Total Yield
2.94%

Company Profile

Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the largest supplier of hydrogen and helium in the world. It has a unique portfolio serving customers in a number of industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated $12.6 billion in revenue in fiscal 2023.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Large Core
Total Number of Employees
23,000

Competitors

Valuation

Metric
APD
AI
LIN
Price/Earnings (Normalized)
20.5030.6932.07
Price/Book Value
3.564.205.54
Price/Sales
4.273.306.83
Price/Cash Flow
14.8817.5622.92
Price/Earnings
APD
AI
LIN

Financial Strength

Metric
APD
AI
LIN
Quick Ratio
1.520.480.62
Current Ratio
1.810.790.80
Interest Coverage
16.3813.7619.83
Quick Ratio
APD
AI
LIN

Profitability

Metric
APD
AI
LIN
Return on Assets (Normalized)
8.41%6.56%8.80%
Return on Equity (Normalized)
18.26%13.88%17.60%
Return on Invested Capital (Normalized)
10.72%9.12%11.96%
Return on Assets
APD
AI
LIN
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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
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ECL
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LYB
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PPG
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DD
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IFF
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ALB
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SQM
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