Air Products and ChemicalsAPD +0.43%79 Return-on-Tangible-Equity is 19.90% as of Mar. 2026, which is 9% above its 10-year median of 18.31. GuruFocus rates APD with a GF Score™ of 79/100 and a GF Value™ of $283.79 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,575 Chemicals companies, Air Products and Chemicals ranks better than 82.67% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Air Products and Chemicals's annualized net income for the quarter that ended in Mar. 2026 was $2,842 Mil. Air Products and Chemicals's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $14,277 Mil. Therefore, Air Products and Chemicals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.90%.
The historical rank and industry rank for Air Products and Chemicals's Return-on-Tangible-Equity or its related term are showing as below:
APD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.67 Med: 18.31 Max: 40.43
Current: 15.03
During the past 13 years, Air Products and Chemicals's highest Return-on-Tangible-Equity was 40.43%. The lowest was -2.67%. And the median was 18.31%.
APD's Return-on-Tangible-Equity is ranked better than 82.67% of 1575
companies
in the Chemicals industry
Industry Median: 5.7
vs APD: 15.03
Air Products and Chemicals (NYSE:APD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Air Products and Chemicals Return-on-Tangible-Equity Related Terms
Air Products and Chemicals Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Air Products and Chemicals Return-on-Tangible-Equity Chart
APD vs ECL, SHW, PPG: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Air Products and Chemicals's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Products and Chemicals Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Products and Chemicals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Products and Chemicals's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.90% mean?
Air Products and Chemicals (APD) has a Return-on-Tangible-Equity of 19.90% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Products and Chemicals and its competitors. This is near median its historical median of 18.31. According to the industry distribution chart, Air Products and Chemicals ranks #273 out of 1575 companies in the Chemicals industry, placing it in the top 17.3%.
Is Air Products and Chemicals' Return-on-Tangible-Equity too high?
Air Products and Chemicals' current Return-on-Tangible-Equity of 19.90% is near median its 10-year median of 18.31. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Air Products and Chemicals' value of 19.90% is 249.1% above this industry median. Based on the distribution chart, Air Products and Chemicals ranks #273 out of 1575 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Air Products and Chemicals has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Products and Chemicals' Return-on-Tangible-Equity compare to ECL and SHW?
According to the Chemicals industry distribution chart, Air Products and Chemicals ranks #273 out of 1575 companies for Return-on-Tangible-Equity. This places Air Products and Chemicals in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.70. Air Products and Chemicals' value of 19.90% is 249.1% above this benchmark. While the company's 10-year median is 18.31 vs. the industry median of 5.70, Air Products and Chemicals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,575 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Products and Chemicals's current Return-on-Tangible-Equity of 19.90% is 249.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Products and Chemicals and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Products and Chemicals's current Return-on-Tangible-Equity is 19.90%, which is near median its own 10-year median of 18.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Products and Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Air Products and Chemicals (APD) is currently considered Fairly Valued. The stock's GF Value™ is $283.79, compared to a current price of $279.93 — trading 1.4% below its estimated fair value. The current Return-on-Tangible-Equity is 19.90%, which is near median its 10-year median of 18.31 and 249.1% above the Chemicals industry median of 5.70. Air Products and Chemicals' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Air Products and Chemicals (APD), the current Return-on-Tangible-Equity is 19.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Products and Chemicals (APD) Overvalued in 2026?
Based on GuruFocus' analysis, Air Products and Chemicals stock appears to be undervalued.
The current stock price of $279.93 is trading 1.4% below its estimated GF Value™ of $283.79.
GuruFocus considers Air Products and Chemicals to be Fairly Valued.
Key valuation signals for APD:
Return-on-Tangible-Equity: 19.90% (near median its 10-year median of 18.31)
GF Value™: $283.79 vs. price of $279.93 (1.4% below fair value)
Industry Position: 249.1% above the Chemicals median (#273 of 1575)
No single metric tells the full story. See the APD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the world's largest supplier of hydrogen and helium. It has a unique portfolio serving customers across industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated roughly $12 billion in revenue in fiscal 2025.
79GF Score
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