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Air Products & Chemicals Inc APD

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Air Products Posts Mixed Fiscal Q3 Results and Unveils Updated Capital Deployment Plan

Analyst Note

| Krzysztof Smalec, CFA |

Narrow-moat rated Air Products reported mixed fiscal third-quarter results, as its sales of $2,605 million beat the FactSet consensus estimate of $2,498 million, but adjusted EPS of $2.31 fell $0.05 short of expectations. The industrial gas firm also lowered the top end of its full-year fiscal 2021 adjusted EPS guidance range by a nickel, from $8.95-$9.10 to $8.95-$9.05. We’ve trimmed our fair value estimate for Air Products to $316 from $323, which reflects our slightly more muted near-term projections and the implementation of a probability-weighted change in the U.S. statutory tax rate in our model. We see shares as modestly undervalued at current levels, with the stock trading in 4-star territory.

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Company Profile

Business Description

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 $8.9 billion in revenue in fiscal 2020.

Contact
7201 Hamilton Boulevard
Allentown, PA, 18195-1501
T +1 610 481-4911
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Jun 30, 2021
Fiscal Year End Sep 30, 2021
Stock Type Cyclical
Employees 19,275

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