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Air Products & Chemicals Inc - Stock Quote APD

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Morningstar's Air Products & Chemicals Inc Stock Analysis

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Economic Moat

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Capital Allocation

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Air Products Is Poised for Rapid Growth Driven by Its Ambitious Capital Deployment Plan

Business Strategy and Outlook

| Krzysztof Smalec, CFA |

Air Products benefits from operating in an industry with a very favorable structure. Despite selling industrial gases, which are essentially commodities, public industrial gas companies have consistently delivered lucrative returns because of their economic moats. Industrial gases typically account for a relatively small fraction of customers’ costs but are a vital input to ensure uninterrupted production. As such, customers are often willing to pay a premium and sign long-term contracts to ensure their businesses run smoothly. Long-term contracts and high switching costs contribute to industrial gas producers’ moats, helping them generate a predictable cash flow stream and lucrative returns.

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Air Products & Chemicals Inc's 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 $10.3 billion in revenue in fiscal 2021.

Contact
7201 Hamilton Boulevard
Allentown, PA, 18195-1501
T +1 610 481-4911
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Mar 31, 2022
Fiscal Year End Sep 30, 2022
Stock Type Cyclical
Employees 20,875

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