APD Intrinsic Value – Is Air Products and Chemicals a Smart Value Investment?
January 5, 2024
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Investing in Air ($NYSE:APD) Products and Chemicals Inc. (APD) has been an attractive option for many investors, as it offers a solid dividend yield and a good long-term track record of performance. APD provides industrial gases, specialty chemicals and related services to customers around the world. It is a leader in its field and has a strong presence in major global markets. This makes it an attractive option for investors who are looking for a reliable and long-term value investment. It is important to understand the current state of the company before making an investment decision. This is a good value considering its strong dividend yield and a history of consistent earnings growth. In addition, the company has a strong balance sheet, with low debt levels and ample liquidity. Furthermore, APD has a very low price-to-earnings ratio, indicating that the stock is undervalued compared to other stocks in the same sector. Investors should also be aware of the risks associated with investing in APD. The company is heavily dependent on the health of the global economy, as demand for its products is heavily dependent on economic conditions. In addition, the company’s financial performance is highly sensitive to fluctuations in oil prices, as it relies heavily on oil and gas for its operations. Furthermore, the company faces stiff competition from other industrial gas and specialty chemical companies. In conclusion, investing in Air Products and Chemicals Inc. can be a smart value investment for those willing to take on some risk. The company has a strong balance sheet and a good dividend yield. It also has a low price-to-earnings ratio, indicating that it is undervalued relative to other stocks in the sector.
However, investors should be aware of the risks associated with investing in APD before making an investment decision.
Market Price
Air Products and Chemicals Inc. (AIR) has been a steady performer in the market and has recently been making headlines after its stock opened at $272.3 on Tuesday and closed at $273.5, a mere 0.1% down from its prior closing price of $273.8. Air Products and Chemicals Inc. have also implemented an aggressive buyback program as of late, which shows that the company is confident in its stock and recognizes the potential for growth. This could be an encouraging sign for investors looking to make a long-term investment as it indicates that Air Products and Chemicals Inc. believes in its own stock and is willing to invest heavily in its own future. The company’s long-term financial performance and commitment to increasing shareholder returns appears to make it a reliable choice for investors looking to diversify their portfolio and make a safe bet in the stock market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for APD. More…
| Total Revenues | Net Income | Net Margin |
| 12.6k | 2.3k | 19.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for APD. More…
| Operations | Investing | Financing |
| 3.21k | -5.92k | 1.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for APD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 32k | 16.34k | 64.41 |
Key Ratios Snapshot
Some of the financial key ratios for APD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.5% | 7.0% | 24.3% |
| FCF Margin | ROE | ROA |
| -11.3% | 13.4% | 6.0% |
Analysis – APD Intrinsic Value
At GoodWhale, we have conducted an analysis of AIR PRODUCTS AND CHEMICALS’s wellbeing. Through our proprietary Valuation Line, we calculated the intrinsic value of AIR PRODUCTS AND CHEMICALS share to be around $299.5. Currently, the stock is being traded at $273.5, which is a fair price but still undervalued by 8.7%. Therefore, we conclude that it is a good opportunity to invest in AIR PRODUCTS AND CHEMICALS. More…
Peers
Air Products & Chemicals Inc is an American multinational corporation whose principal business is the supply of gases and chemicals for industrial uses. The company is headquartered in Allentown, Pennsylvania and has operations in over 50 countries. Air Products & Chemicals Inc is the largest industrial gas company in the world with revenues of over $10 billion. Air Liquide SA, Linde PLC, and Autris are its main competitors.
– Air Liquide SA ($LTS:0NWF)
As of 2022, Air Liquide SA has a market cap of 68.08B with a ROE of 11.4%. The company is engaged in the business of gas and service provider. It supplies industrial gases and services to a variety of customers in the healthcare, energy, and environmental sectors.
– Linde PLC ($NYSE:LIN)
The company’s market cap is 147.13B as of 2022 and its ROE is 8.63%. The company is engaged in the manufacture and sale of Linde gas and other industrial gases. The company has a strong presence in Europe, North America, and Asia Pacific.
– Autris ($OTCPK:AUTR)
Autris is a global leader in providing innovative solutions for the automotive industry. The company has a market cap of 690.7k as of 2022 and a return on equity of 146.32%. Autris is committed to providing the highest quality products and services to its customers. The company has a strong focus on research and development, and is constantly innovating to provide the best possible solutions for the automotive industry. Autris is a trusted partner of many of the world’s leading automakers, and is dedicated to helping them meet the challenges of the future.
Summary
Its return on equity and return on assets have consistently been higher than the industry average, indicating strong operational efficiency. Its balance sheet also has low levels of debt, further bolstering its financial strength. Furthermore, it has strong insider ownership and a low short interest, both of which make it a safe bet for long-term investors.
