5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Air Products and Chemicals's 5-Year ROIIC % for the quarter that ended in Sep. 2025 was 2.48%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Air Products and Chemicals's 5-Year ROIIC % or its related term are showing as below:
APD's 5-Year ROIIC % is ranked better than 53.06% of 1470
companies
in the Chemicals industry
Industry Median: 1.445
vs APD: 2.48
Air Products and Chemicals (NYSE:APD) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Air Products and Chemicals 5-Year ROIIC % Related Terms
Air Products and Chemicals 5-Year ROIIC % 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.
For the Specialty Chemicals subindustry, Air Products and Chemicals's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Products and Chemicals's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Air Products and Chemicals's 5-Year ROIIC % falls into.
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 2270.754 (Sep. 2025) - 1795.89776 (Sep. 2020) )
/
( 36533.7 (Sep. 2025) - 17414.6 (Sep. 2020) )
=
474.85624
/
19119.1
=
2.48%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Air Products and Chemicals (APD) has a 5-Year ROIIC % of 2.48 as of Sep. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Air Products and Chemicals and its competitors. According to the industry distribution chart, Air Products and Chemicals ranks #690 out of 1470 companies in the Chemicals industry, placing it in the top 46.9%.
Is Air Products and Chemicals' 5-Year ROIIC % too high?
Air Products and Chemicals' current 5-Year ROIIC % is 2.48. The Chemicals industry median 5-Year ROIIC % is 1.45. Air Products and Chemicals' value of 2.48 is 71.6% above this industry median. Based on the distribution chart, Air Products and Chemicals ranks #690 out of 1470 companies in the Chemicals industry, which is above the industry midpoint. 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' 5-Year ROIIC % compare to ECL and SHW?
According to the Chemicals industry distribution chart, Air Products and Chemicals ranks #690 out of 1470 companies for 5-Year ROIIC %. This puts Air Products and Chemicals in the upper half of its industry. The industry median 5-Year ROIIC % is 1.45. Air Products and Chemicals' value of 2.48 is 71.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Chemicals company?
The median 5-Year ROIIC % among Chemicals companies is 1.45, based on 1,470 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Products and Chemicals's current 5-Year ROIIC % of 2.48 is 71.6% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Air Products and Chemicals and its competitors. For the Chemicals industry, the median 5-Year ROIIC % is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Products and Chemicals's current 5-Year ROIIC % is 2.48. 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 5-Year ROIIC % is 2.48 and 71.6% above the Chemicals industry median of 1.45. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Air Products and Chemicals (APD), the current 5-Year ROIIC % is 2.48 as of Sep. 2025. 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:
5-Year ROIIC %: 2.48
GF Value™: $283.79 vs. price of $279.93 (1.4% below fair value)
Industry Position: 71.6% above the Chemicals median (#690 of 1470)
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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