APDNEUTRAL

Return on Equity (ROE)

-2.6%

Higher than 14% of Basic Materials sector peers

Updated 1926h ago

Sector Performance

14th percentile

APD

-2.6%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

Air Products and Chemicals (APD) currently has a Return on Equity (ROE) of -2.6%, meaning that for every dollar of shareholder equity, the company generated a loss of 2.6 cents instead of profit.

This is far below the Basic Materials sector median of 13.3%, placing APD in the 20th percentile among its peers — worse than 80% of comparable companies. Both the year-over-year and quarter-over-quarter changes are not available, so no trend direction can be assessed from recent data. The combination of a deeply negative ROE and no observable trend suggests a high level of investment risk, as the company is currently destroying shareholder value while lacking any track record of improving profitability. This negative ROE directly supports the overall CAUTIOUS verdict, since a company that cannot generate positive returns on equity is fundamentally underperforming the sector and poses elevated financial risk.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about APD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does APD's Return on Equity (ROE) compare to its sector?

APD's Return on Equity (ROE) of -2.6% compares to a Basic Materials sector median of 12.5%, placing it in the 14th percentile.

Who are APD's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), AEM (18.0%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.