APD FCF Yield Analysis
Higher than 0% of Basic Materials sector peers
Updated 2065h ago·SEC filings & market data
Key Takeaway
Air Products and Chemicals currently has a Free Cash Flow Yield of -6.2%, meaning its free cash flow is negative relative to its market value — a negative yield indicates the company is spending more cash than it generates.
Sector Performance
0th percentileAPD
-6.2%
Sector Median
4.4%
Sector Avg
3.2%
Deep Analysis
Air Products and Chemicals currently has a Free Cash Flow Yield of -6.2%, meaning its free cash flow is negative relative to its market value — a negative yield indicates the company is spending more cash than it generates.
This sits far below the Basic Materials sector median of 4.8%, placing the stock at the 0th percentile among its peers, which represents the weakest relative performance. The metric has no available trend because the yearly-over-year change and quarter-over-quarter change are both listed as N/A, and the last eight quarters show no directional data. When a negative yield is paired with no trend history, the primary risk is that the cash flow generation is currently insufficient to cover operations or distributions, and there is no basis to judge whether this is improving or worsening. From an investment standpoint, this combination signals elevated uncertainty: the absolute level is poor, and the lack of trend data prevents any assessment of momentum. This metric directly contradicts the CAUTIOUS verdict on the stock, as a negative FCF Yield in the bottom percentile is a red flag that warrants a more negative stance.
Frequently Asked Questions
What does the FCF Yield tell investors about APD?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does APD's FCF Yield compare to its sector?
APD's FCF Yield of -6.2% compares to a Basic Materials sector median of 4.4%, placing it in the 0th percentile.
Who are APD's closest peers by FCF Yield?
The closest Basic Materials peers by FCF Yield include: AG (4.4%), PPG (4.5%), ALB (4.2%), AEM (5.0%), MAG (-0.7%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master APD's Valuation
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-6.2%
Sector Median
4.4%
Sector Avg
3.2%
How APD's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.