Air Products and Chemicals, Inc. (APD) Company Bio
Air Products & Chemicals is a leading industrial gases company. The company provides atmospheric, process and specialty gases, and related equipment to manufacturing markets including metals, food and beverage, refining and petrochemical, and natural gas liquefaction. Air Products' materials technologies segment serves the semiconductor, polyurethanes, cleaning and coatings, and adhesives industries. The company was founded in 1940 and is based in Allentown, Pennsylvania.
APD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for APD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Air Products & Chemicals Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Air Products & Chemicals Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 24.99; that's higher than 90.26% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 15.4% of the free cash flow producing stocks we're observing.
APD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 46.67% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CCCL, ACH, MAS, SQM, and TREX can be thought of as valuation peers to APD, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Air Products (NYSE:APD), a leading global industrial gases company, today announced that it has again been awarded a gold medal for its Corporate Social Responsibility (CSR) performance from EcoVadis, a multinational CSR ratings agency. This is the third year in a row that Air Products has achieved a gold rating from EcoVadis.
Air Products (NYSE: APD) today announced that its new steam methane reformer (SMR) and cold box in Geismar, Louisiana are onstream and supplying Huntsman's neighboring industrial operations. Air Products built, owns and operates the facility under a long-term agreement, supplying carbon monoxide (CO), hydrogen and steam produced from the facility to Huntsman. Air Products' SMR is also connected to its Gulf Coast hydrogen pipeline and network system (GCP), which is the world's largest hydrogen plant and pipeline network system.