APD - Embedded Expectations Analysis - 2019 01 14
Air Products and Chemicals, Inc. (APD:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 2.0x Uniform P/B, implying bullish expectations for the firm. To this point, management is confident about earnings improvements, increased growth from acquisitions, and capital deploymentSpecifically, management is excited about their capital deployment capacity. Additionally, management is confident about the increased safety, productivity, and operating performance provided by their Five-Point Plan. Moreover, they are confident about the engineering and technology capabilities in the US, UK, and China, and are confident in the volume growth from China. Finally, management is confident in the future growth and profitability prospects of the LNG business and are also confident that their GE gasification acquisition will position them to win very large onsite gasification projects
Air Products and Chemicals serves customers globally with a portfolio of products, services, and solutions that include atmospheric gases, process and other gases, equipment, and services. The company is a supplier of hydrogen and is engaged in helium and liquefied natural gas (LNG) process technology and equipment. The company also develops, engineers, builds, owns and operates industrial gas projects, including gasification projects that convert abundant natural resources into syngas for the production of power, fuels and chemicals. The company designs and manufactures equipment for air separation, hydrocarbon recovery and purification, LNG, and liquid helium and liquid hydrogen transport and storage.
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