Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Air Products and Chemicals, Inc. (NYSE:APD) due to its excellent fundamentals in more than one area. APD is a financially-robust , dividend-paying company with a a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Air Products and Chemicals here.
Excellent balance sheet established dividend payer
In the previous year, APD has ramped up its bottom line by 44%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, APD also outperformed its industry, which delivered a growth of 5.4%. This is an notable feat for the company. APD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. APD's has produced operating cash levels of 0.72x total debt over the past year, which implies that APD's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, APD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.3%.
For Air Products and Chemicals, there are three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for APD’s future growth? Take a look at our free research report of analyst consensus for APD’s outlook.
- Valuation: What is APD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether APD is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of APD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.