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Air Products and Chemicals Inc
🇺🇸 APD · NYSE/NASDAQ · US0091581068
Materials
USD 297.69 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
31.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 297.69 ÷ 9.45 = 31.5
TTM period through: 2026-03-31
Forward P/E (estimated): 20.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.1
Net Debt/EBITDA (TTM)
3.8x
Latest quarter: 13.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 13.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
12.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
18.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.43%
TTM: 2.42%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.43%
Trailing Yield (TTM, last 12 months): 2.42%
Payout Ratio (Fwd)
76.6%
TTM: 75.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 76.6%
Payout (TTM): 75.6%
Cash Flow Payout (TTM): 38.7%
FCF Coverage (TTM): 0.70x
Growth Streak
1 yrs
Consec. increases
Div. Growth (5Y)
5.9%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 01 Jul 2027 | — | USD | 1.81 |
| Forecast* | Quarterly | — | 01 Apr 2027 | — | USD | 1.81 |
| Forecast* | Quarterly | — | 02 Jan 2027 | — | USD | 1.79 |
| Forecast* | Quarterly | — | 01 Oct 2026 | — | USD | 1.79 |
| Declared | Quarterly | 23 Apr 2026 | 01 Jul 2026 | 10 Aug 2026 | USD | 1.81 |
| Paid | Quarterly | 27 Jan 2026 | 01 Apr 2026 | 11 May 2026 | USD | 1.81 |
| Paid | Quarterly | 19 Nov 2025 | 02 Jan 2026 | 09 Feb 2026 | USD | 1.79 |
| Paid | Quarterly | 18 Jul 2025 | 01 Oct 2025 | 10 Nov 2025 | USD | 1.79 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
² Type not provided by EODHD — inferred from historical payment data.
Summary
Air Products benefits from a strong oligopoly position in industrial gases, but its capital-intensive transition to blue and green hydrogen makes it a poor fit for conservative dividend strategies. While recent one-time charges explain the temporary earnings drop, the 2.4% yield and elevated valuation multiples offer inadequate compensation for the elevated execution risk. Not recommended for new positions, as better opportunities exist in more stable essential services.
Sector Context
Air Products and Chemicals operates in the specialized industrial gas sector, supplying critical gases like oxygen, nitrogen, and hydrogen to refining and manufacturing clients via long-term contracts. While this oligopoly structure traditionally provides highly stable cash flows ideal for dividend investing, the industry is currently undergoing a massive, capital-intensive transition toward low-carbon hydrogen, introducing significant execution and regulatory risks.
Temporary Opportunity Identified
Massive $2.3 billion one-time after-tax charge in Q2 2025 related to canceling three major U.S. projects and global cost reduction initiatives, artificially depressing TTM earnings.
📊 Strategy Analysis
- • Operates as a highly entrenched industrial gas oligopoly backed by 15 to 30-year on-site tonnage contracts with major energy and manufacturing clients.
- • Recent GAAP net loss (-$1.73B) was driven by a temporary, one-time $2.3B after-tax charge for strategic restructuring, rather than fundamental deterioration of the core legacy business.
⚠ What to Watch
- • Severe strategy mismatch: The heavily capital-intensive transition away from legacy Steam Methane Reforming to unproven blue and green hydrogen introduces massive execution and regulatory risks (e.g., 45V credit restrictions) unsuitable for conservative dividend strategies.
- • Current dividend yield of 2.42% falls strictly below the 3.0% minimum threshold required for this dividend income strategy, with free cash flow currently failing to cover the payout (0.70x FCF coverage).
- • Valuation remains extremely elevated with a TTM P/E of 31.49x and a Forward P/E of 20.88x, offering no margin of safety for the ongoing strategic transition.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-11
Disclaimer: This information is for educational purposes only. Not financial advice.