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US Equities · Finance research note

APD — Air Products

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Evidence and analysis

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 23.59%
Profit Margins 16.91%
Return on Equity 12.35%
Return on Assets 3.6%
Free Float 0.22B
Dividend Yield 2.59%
Short Int % Utilisation 1.43%

2.2 Growth

Metric Value
Revenue Growth 8.8%
Free Cash Flow -3.52B
EBITDA 21.03 (Ratio)
Enterprise Value 81.56B
EV/Revenue 6.54
EV/EBITDA 21.03

Revenue growth of 8.8% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 13.21%
Risk / Std Dev (Ann.)* 26.70%
1-Year Price Return* 9.21%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $308.97
52-Week Range $229.11 – $314.87
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $12.04B $12.10B
Net income Reported net income $-394.50M $3.83B
Total assets Year-end reported balance $41.06B $39.57B
Shareholders’ equity Year-end reported balance $15.02B $17.04B
Net margin Net income ÷ revenue -3.28% 31.64%
Asset turnover Revenue ÷ total assets 0.2932x 0.3058x
Equity multiplier Total assets ÷ shareholders’ equity 2.7328x 2.3229x
ROE Net margin × asset turnover × equity multiplier -2.63% 22.47%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: Reported operating inputs do not support a stable FCFF DCF. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $303.93
Market capitalisation $67.68B
Revenue $12.04B
EBIT -$226.70M
Reported free cash flow -$3.77B
FCF yield -5.56%
Net debt / EBITDA 12.37x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:22:52.595828 UTC; latest reported fiscal period: 2025-09-30 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -14.83% -8.12%
Adjusted R² 0.08 0.09
Annualised residual volatility 25.79% 25.47%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.43 (2.86) 0.61 (3.52)
Size (SMB) -0.07 (-0.33) -0.14 (-0.64)
Value (HML) 0.73 (4.15) 0.46 (2.16)
Profitability (RMW) NM 0.20 (1.09)
Investment (CMA) NM 0.55 (1.75)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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