Underpriced Stock: Air Products and Chemicals Inc. (APD) Undervalued by 5.32%

Publicly-traded company Air Products and Chemicals Inc. (NYSE:APD) had a closing price of $232.40 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $245.45, this means that the stock is underpriced by 5.32%. In the past 52 weeks the company’s stock price has moved within the range of $149.64 to $241.90.

This particular stock’s 5-day moving average is 230.85, its 20-day moving average is 234.53 and its 100-day moving average is 223.86. Air Products and Chemicals Inc. (APD) currently has 220.60M shares outstanding, which means that its market capitalization is $51.27B.

The Details: Air Products and Chemicals Inc. (APD) Financial Health

When considering a potential stock, there are multiple indicators we can take into consideration that give us an idea of the company’s financial health. Checking out a company’s profit margin, for instance, shows us how much of its net sales revenue it retains as earnings. This figure is determined by taking total income and dividing it by net sales. APD currently has a profit margin of 19.70%.

Seeing a company’s operating margin is useful as well, as it lets us know how much profit the company keeps – after taking into account depreciation and its operating expenses. Air Products and Chemicals Inc. (APD) has an operating margin of 24.00%.

We can also see what the current Return on Assets is for the company, which is a percentage that lets us know how well it is utilizing its net assets to turn a profit. The lower the percentage, the worse the company is making use of its assets. At the moment, Air Products and Chemicals Inc. Return on Assets is 9.20%.

What Does Wall Street Say about Company?

When investors are considering buying a new stock, they often want to know the general Wall Street consensus on the company – by checking out the average analyst rating, for instance. At the moment, the average analyst rating for APD is Overweight. Out of 23 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 11 rated it hold, and 12 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Air Products and Chemicals Inc. (APD) was a Overweight – from a survey of 21 analysts. Of the analysts who provided ratings, 9 rated the company a Hold, 0 rated it a Sell, 0 rated it an overweight, 0 rated it an underweight, and 12 rated it a Buy.

Understanding Profitability at Air Products and Chemicals Inc. (APD)

Checking out a public company’s Earnings per Share (EPS) is a smart way of assessing its profitability. In the most recent financial results released by Air Products and Chemicals Inc., for the quarter ending on 12/2019, the company posted EPS of 2.08. The average estimate of Wall Street analysts had projected 2.10.

Wall Street analysts, on average, are forecasting the company’s EPS to be 2.09, compared to 1.86 reported in the same quarter last year.