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APDAir Products and Chemicals, IncSell4.9·$308.97+1.13%
SellModerate Confidence
Investment thesis

APD has compounded a four-quarter earnings beat streak with best-in-class operating margins of 17% and volume accumulation in the shares, but free cash flow is deeply negative relative to reported net income, the stock offers only 4.3% upside to analyst consensus target with an unfavorable reward-to-risk ratio of roughly 0.9-to-1, and 60% geographic revenue exposure outside the United States adds a concentration overhang that limits conviction despite the earnings execution track record.

Thesis pillars

  • Thin Upside Unfavorable Reward RiskDeteriorating
  • Four Quarter Earnings Beat StreakStable
  • Negative Free Cash Flow ConversionStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Air Products and Chemicals, Inc (APD) Stock Analysis

Breakout setup

SellModerate Confidence

Basic Materials · Specialty Chemicals

Sell if holding. Engine safety override at $308.97: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality.

Air Products and Chemicals produces industrial gases — oxygen, nitrogen, hydrogen, helium, argon — serving refining, chemicals, metals, and electronics industries across approximately 50 countries. Regional industrial gases constituted over 90% of fiscal 2025 sales;... Read more

$308.970.0% A.UpsideScore 4.9/10#38 of 41 Specialty Chemicals
QualityF-score4 / 9FCF yield-5.53%
IncomeYield2.38%(5y avg 2.45%)Payout75.66%
Stop $295.41Target $309.03(analyst − 10%)A.R:R 0.0:1
Analyst target$343.37+11.1%19 analysts
$309.03our TP
$308.97price
$343.37mean
$365

Sell if holding. Engine safety override at $308.97: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 70, MACD bullish. Score 4.9/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 82d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Nov 5, 202682d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Geographic: outside the United States (60.0%)
Concentration risk — Product: regional industrial gases
Target reached (0.0% upside)

Key Metrics

P/E (TTM)
P/E (Fwd)21.2
Mkt Cap$68.0B
EV/EBITDA85.5
Profit Mgn-0.4%
ROE0.0%
Rev Growth4.6%
Beta0.75
Dividend2.38%
Rating analysts27

Quality Signals

Piotroski F4/9

Options Flow

P/C0.38bullish
IV47%normal

Concentration Risks(10-K Item 1A)

  • HIGHGeographicoutside the United States60%
    10-K Item 1A: 'approximately 60% of our sales were derived from customers outside the United States'
  • HIGHProductregional industrial gases
    10-K Item 1: 'Overall regional industrial gases sales constituted over 90% of consolidated sales in fiscal years 2025, 2024, and 2023'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

4 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
0.5
Quality Rank
2.3
Growth Rank
2.4

Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static

Roe
0.0
Roa
0.0
Net Margin
0.0
Fcf Quality
0.0
Gross Margin
2.4
Moat
3.8
Current Ratio
4.3
Piotroski F
4.4
Operating Margin
10.0
Cash-burning: FCF -30% of revenueNo competitive moatQuality concerns

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
3.7
Low model confidence on this dimension (33%).

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.6
Support Resistance
1.1
52w Position
9.6
GatesA.R:R UPSIDE_EXHAUSTED (upside=0.0%)Momentum 6.8>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 82d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
70 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $288.00Resistance $311.51

Price Targets

$295
$309
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (0.0% upside)
! Quality below floor (2.8 < 4.0)

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-11-05 (82d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is APD stock a buy right now?

Sell if holding. Engine safety override at $308.97: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 70, MACD bullish. Prior stop was $295.41. Score 4.9/10, moderate confidence.

What is the APD stock price target?

Take-profit target: $309.03 (0.0% upside). Prior stop was $295.41. Stop-loss: $295.41.

What are the risks of investing in APD?

Concentration risk — Geographic: outside the United States (60.0%); Concentration risk — Product: regional industrial gases; Target reached (0.0% upside).

Is APD overvalued or undervalued?

Air Products and Chemicals, Inc trades at a P/E of N/A (forward 21.2). TrendMatrix value score: 5.7/10. Verdict: Sell.

What do analysts say about APD?

27 analysts cover APD with a consensus score of 3.9/5. Average price target: $343.

What does Air Products and Chemicals, Inc do?Air Products and Chemicals produces industrial gases — oxygen, nitrogen, hydrogen, helium, argon — serving refining,...

Air Products and Chemicals produces industrial gases — oxygen, nitrogen, hydrogen, helium, argon — serving refining, chemicals, metals, and electronics industries across approximately 50 countries. Regional industrial gases constituted over 90% of fiscal 2025 sales; approximately 60% of revenue came from customers outside the U.S., secured under 15- to 20-year on-site supply contracts.

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