Air Products Story

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APD -- USA Stock  

USD 255.70  4.68  1.80%

Air Products And is scheduled to announce its earnings today. The next earnings report is expected on the 22nd of April 2021. The stock experiences an active downward rally. Air Products Enterprise Value is projected to increase significantly based on the last few years of reporting. The past year's Enterprise Value was at 80.58 Billion. The current year Free Cash Flow is expected to grow to about 901.4 M, whereas Average Assets are forecasted to decline to about 23.5 B. While some baby boomers are getting worried about basic materials space, it is reasonable to digest Air Products And as an investment alternative. We will evaluate why recent Air Products price moves suggest a bounce in March.
Published over two weeks ago
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Will Air Products (NYSE:APD) debt increase in March 2021?
Air Products And has 8.32 B in debt with debt to equity (D/E) ratio of 0.67, which is OK given its current industry classification. The entity has a current ratio of 3.52, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Air Products' future annual earnings. Given the historical accuracy of 99.1%, the future earnings per share of the company is estimated to be 9.2783 with the lowest and highest values of 9.07 and 9.5, respectively. Please note that this consensus of annual earnings estimates for Air Products And is an estimate of EPS before non-recurring items and including employee stock options expenses.
Air Products financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Air Products, including all of Air Products's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Air Products assets, the company is considered highly leveraged. Understanding the composition and structure of overall Air Products debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Air Products Total Liabilities

Air Products And liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Air Products And has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Air Products balance sheet include debt obligations and money owed to different Air Products vendors, workers, and loan providers. Below is the chart of Air Products short long-term liabilities accounts currently reported on its balance sheet.
You can use Air Products And financial leverage analysis tool to get a better grip on understanding its financial position

How important is Air Products's Liquidity

Air Products financial leverage refers to using borrowed capital as a funding source to finance Air Products And ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Air Products financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Air Products's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Air Products, but it might be worth checking our own buy vs. sell analysis

Going after Air Products Financials

The latest Air Products And price dip could raise concerns from shareholders as the firm it trading at a share price of 256.70 on 6,118,189 in volume. The company management teams were unable to exploit market volatilities in January. However, diversifying your overall positions with Air Products And can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.18. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Air Products unsystematic, company-specific events.

Liabilities Breakdown

Tax Liabilities
2.3 B
Current Liabilities
10.1 B
Long-Term Liabilities
Total Liabilities13.16 Billion
Current Liabilities2.27 Billion
Long-Term Liabilities10.15 Billion
Tax Liabilities1.12 Billion

Breaking up Air Products latest price dip

Total Risk Alpha just dropped to -3.32, may indicate upcoming price depreciation. As of the 4th of February, Air Products shows the mean deviation of 3.02, and Risk Adjusted Performance of (0.1). Air Products And technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Air Products And, which can be compared to its rivals. Please confirm Air Products And value at risk, and the relationship between the jensen alpha and semi variance to decide if Air Products And is priced correctly, providing market reflects its regular price of 256.7 per share. Given that Air Products has jensen alpha of (1.09), we suggest you to validate Air Products And's prevailing market performance to make sure the company can sustain itself at a future point.

Although some other entities in the chemicals industry are either recovering or due for a correction, Air Products may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 4th of February 2021, we see that Air Products almost neglects market trends. The firm is overvalued with low probability of financial unrest within the next 24 months. Our actual 30 days buy-hold-sell advice on the firm is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Air Products And. Please refer to our Terms of Use for any information regarding our disclosure principles.

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