APD - Embedded Expectations Analysis - 2020 02 14
ï€ Air Products and Chemicals, Inc. (APD:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 2.6x Uniform P/B, implying bullish expectations for the firm. However, management may be concerned about the potential of their Jazan joint venture, EBITDA growth, and industrial production declinesï€ Specifically, management may be concerned about the progress and potential profitability of their Jazan joint venture, the capital-intensive nature of their acquired power plant assets, and the positive reception of their acquisition announcement. In addition, they may lack confidence in their ability to sustain EBITDA and EPS growth and maintain free cash flow and pricing performance. Furthermore, they may be exaggerating their focus on environmental issues, and they may be downplaying concerns about industrial production declines. Finally, they may be concerned about the progress of their YK Group project discussions and about the negative impact of their India contract modification
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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