Stock fact sheet · data as of
Air Products and Chemicals, Inc. (APD): fair value, margin of safety and Wheel Score
Basic Materials · Chemicals - Specialty · United States · Speculative / Distressed
Is APD undervalued?
APD closed at 296.60 on 16 Oct 2026, more than 30% above the GLS average fair value of 175.07. Only 0 of the 2 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The average is built from just 2 models (10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files APD under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for APD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 243.90 | -18% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 106.24 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -80.31 | -127% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 341.08 | +15% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Air Products and Chemicals, Inc. scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 1.9/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -1.2%, ROE -2.6%, ROA -1.0% - with debt at 1.23 times equity and a free-cash-flow yield of 3.1%.
The dividend yield is 2.43% at a payout ratio of -3379%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from On site 53%, Merchant 44%, Sale of Equipment 3% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 2/10 on the GLS smart-money scales; the last recorded Congressional buy was on 4 Sep 2026.
| Piotroski F-score | 4 / 9 | ROIC | -1.2% |
|---|---|---|---|
| GLS Moat | 1.9 / 10 | ROE | -2.6% |
| Debt / equity | 1.23 | ROA | -1.0% |
| Free-cash-flow yield | 3.1% | Payout ratio | -3379% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 2 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Air Products and Chemicals, Inc. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 0/25, Health 9/20, Moat 3/15, Premium 15/20, Stability 19/20 - show where: Value (0/25) scores lowest.
Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). Chain open interest is 19,763 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.2M shares a day on a market cap of $66.0B, with a beta of 0.76 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -69% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 3 / 15 | moat 1.9/10 | |
| Premium | 15 / 20 | implied volatility 30% | |
| Stability | 19 / 20 | 1.2M shares/day, $66.0B cap, beta 0.76 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals - Specialty
The 12 companies below are the closest to Air Products and Chemicals, Inc. by market cap within the Chemicals - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SHW The Sherwin-Williams Company | 324.54 | 204.35 | -59% | 63Fair | $78.8B |
| ECL Ecolab Inc. | 290.81 | 154.81 | -88% | 57Fair | $81.5B |
| PPG PPG Industries, Inc. | 104.87 | 124.52 | +16% | 84Prime | $23.3B |
| IFF International Flavors & Fragrances Inc. | 90.29 | 32.84 | -175% | 57Fair | $23.0B |
| LYB LyondellBasell Industries N.V. | 62.68 | 95.80 | +35% | 45Weak | $20.2B |
| LIN Linde plc | 493.22 | 255.90 | -93% | 60Fair | $227.4B |
| SQM Sociedad Química y Minera de Chile S.A. | 61.64 | 66.44 | +7% | 71Good | $17.6B |
| RPM RPM International Inc. | 97.95 | 92.95 | -5% | 73Good | $12.5B |
| ALB Albemarle Corporation | 98.18 | 69.68 | -41% | 58Fair | $11.6B |
| SOLS Solstice Advanced Materials Inc. | 60.13 | 46.12 | -30% | 60Fair | $9.6B |
| ESI Element Solutions Inc | 35.53 | 11.90 | -199% | 57Fair | $8.7B |
| NEU NewMarket Corporation | 887.82 | 1,257.42 | +29% | 76Good | $8.2B |
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Start free See the Sunday ScanQuestions about APD
Is APD undervalued right now?
No: at 296.60 the stock trades 69% above the GLS average fair value of 175.07 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of APD and what does it mean?
APD scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for APD?
175.07 per share as of 16 Oct 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Air Products and Chemicals, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does APD have listed options, and how liquid are they?
Yes. The nightly snapshot found 512 listed contracts with 19,763 open interest across all expiries and implied volatility of 30% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.