Air Products & Chemicals Inc. (NYSE:APD)

The financial ratios over the examined periods demonstrate notable fluctuations and trends, reflecting changing investor perceptions and company performance metrics.

Price to Earnings (P/E) Ratio

The P/E ratio showed considerable variability, peaking sharply in 2016 at 48.13 and then declining significantly to 11.74 in 2017. Following this dip, it increased again to 23.09 in 2018 and continued to rise moderately through 2019 and 2020, reaching 31.67. This pattern suggests an initial period of high market valuation relative to earnings, followed by a period of correction or decreased investor confidence, and then a gradual stabilization and growth in valuation.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio exhibited fluctuations without a strong directional trend. It decreased from 17.68 in 2015 to 14.42 in 2016, then rose sharply to 24.68 in 2017. Subsequently, it decreased again to 17.6 in 2018 before increasing in the final two years to 24.1 and 26.71, respectively. These movements indicate variations in market pricing relative to operating profit, possibly reflecting changing operational efficiency or market expectations.

Price to Sales (P/S) Ratio

The P/S ratio demonstrated an overall upward trend across the period. Starting at 3.04 in 2015, it increased gradually to 3.19 in 2016 and 4.3 in 2017, dipped slightly to 3.87 in 2018, then rose substantially to 5.79 in 2019 and further to 6.75 in 2020. This consistent increase, especially in the later years, suggests growing market valuation relative to revenue, possibly indicative of revenue growth expectations or improved market sentiment.

Price to Book Value (P/BV) Ratio

The P/BV ratio depicted a generally stable yet slightly fluctuating trend. It rose from 4.14 in 2015 to 4.29 in 2016, then declined steadily to 3.49 in 2017 and further to 3.19 in 2018. After 2018, it increased again to 4.67 in 2019 and slightly to 4.95 in 2020. This pattern reflects varying investor valuation of the company's net assets, with a bottoming out period around 2017-2018 followed by renewed confidence or asset revaluation in subsequent years.

Share Price

The share price exhibited a generally upward trend over the six-year period. It started at $139.47 in 2015 and remained relatively stable in 2016 at $139.74. There was a noticeable increase in 2017 to $161.18, followed by a slight decline to $157.56 in 2018. From 2018 to 2020, the share price increased significantly, reaching $234.40 in 2019 and further rising to $270.36 by 2020. This pattern indicates growing investor confidence and potentially positive market sentiment toward the company in the latter years.

Earnings Per Share (EPS)

The EPS showed considerable volatility over the same period. Starting at $5.93 in 2015, it dropped sharply to $2.90 in 2016, indicating a significant decline in profitability or increased shares outstanding. In 2017, there was a remarkable recovery and surge to $13.72, which is more than double the initial 2015 figure. However, this peak was not sustained, as EPS decreased to $6.82 in 2018, followed by modest growth to $7.98 in 2019 and $8.54 in 2020. While the EPS displayed fluctuations, the values at the end of the period are higher than at the beginning, suggesting improved earnings performance overall.

Price-to-Earnings (P/E) Ratio

The P/E ratio demonstrated substantial variability, reflecting the changes in both share price and EPS. Beginning at 23.51 in 2015, it more than doubled to 48.13 in 2016, largely due to the sharp decline in EPS with relatively stable share price. In 2017, the P/E dropped significantly to 11.74 as EPS surged, indicating the stock became cheaper relative to earnings. Subsequently, the P/E ratio increased again through 2018 to 23.09, then to 29.36 in 2019, and further to 31.67 in 2020. The rising P/E in the later years may suggest increased market expectations about future growth or a higher valuation multiple placed on the earnings.

An analysis of the financial data over the six-year period reveals several notable trends relating to share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price

The share price exhibited an overall upward trend from 2015 to 2020, increasing from $139.47 in 2015 to $270.36 in 2020. Noteworthy increases occurred particularly between 2018 and 2019, where the price rose significantly from $157.56 to $234.40, followed by continued growth into 2020.

Operating Profit per Share

The operating profit per share showed fluctuations during the period. It started at $7.89 in 2015, peaked at $9.69 in 2016, dropped sharply to $6.53 in 2017, then generally increased over the next three years, reaching $10.12 in 2020. This indicates variability in operational profitability with a strong recovery and growth in the latter years.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio demonstrated significant volatility. It decreased from 17.68 in 2015 to 14.42 in 2016, then rose sharply to 24.68 in 2017. Subsequent years saw fluctuations within a higher range, ending at 26.71 in 2020. This trend suggests that the market valuation relative to operating profit was more elevated in the latter years, reflecting greater investor confidence or expectations despite the variability in operating profit per share.

Overall, the increasing share price coupled with a generally rising operating profit per share and an elevated P/OP ratio over the period suggests improved market sentiment and perceived growth prospects, albeit against some operational performance volatility.

Share Price

The share price exhibited an overall upward trend from 2015 to 2020. It remained relatively stable between 2015 and 2016, around the $139 mark, rose moderately in 2017 and 2018, and then increased sharply in 2019 and 2020, reaching $270.36. This represents nearly a doubling of the share price over the six-year period, indicating growing investor confidence or improving market valuation of the company.

Sales per Share

Sales per share showed a declining trend from 2015 to 2017, falling from $45.93 to $37.45. After hitting this low point, sales per share experienced a modest recovery in 2018 and 2019, reaching approximately $40.68 and $40.46 respectively, before slightly declining again to $40.07 in 2020. Overall, sales per share decreased by around 13% over the period, suggesting moderate pressure or stagnation in revenue generation on a per-share basis.

Price-to-Sales (P/S) Ratio

The P/S ratio experienced a consistent upward trajectory throughout the observed period. Starting at 3.04 in 2015, it increased steadily to 6.75 by 2020. This rise indicates that the market price per share grew faster than sales per share, implying that investors are willing to pay a higher price for each dollar of sales. The increase might reflect improved market sentiment, expectations of future growth, or other factors enhancing perceived company value despite relatively stable sales figures.

The financial data reveals notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the period from 2015 to 2020.

Share Price

The share price exhibits an overall upward trajectory from 2015 to 2020. Beginning at $139.47 in 2015, it remains relatively stable through 2016 at $139.74, followed by a modest rise to $161.18 in 2017. A slight decline to $157.56 occurs in 2018, after which there is a significant increase to $234.40 in 2019 and further to $270.36 in 2020. This indicates strong appreciation in market value, particularly in the latter two years.

Book Value Per Share (BVPS)

BVPS shows general growth over the same period, starting at $33.65 in 2015, dipping slightly to $32.57 in 2016, then rising substantially to $46.14 in 2017. This upward momentum continues gradually to $49.46 in 2018, $50.14 in 2019, and $54.65 in 2020. The steady increase signals an enhancement in the company's net asset value on a per-share basis, reflecting improved equity.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio demonstrates a fluctuating pattern. Initially at 4.14 in 2015, it rises marginally to 4.29 in 2016, before declining to 3.49 in 2017 and further to 3.19 in 2018. Subsequently, there is a sharp rise to 4.67 in 2019, peaking at 4.95 in 2020. This volatility suggests variations in market valuation relative to the company’s book value, with a marked increase in investors' willingness to pay a premium for the company's equity in the last two years of the period analyzed.