Is The Air Products Strategy Sustainable?

C-MACC Weekly Sustainability and Energy Transition Report

Is The Air Products Strategy Sustainable?

• Topic of the Week: The stock market and the activists would suggest that the Air Products strategy is not sustainable in the “ongoing and sensible” sense, but the push into sustainability has, in our view only exposed a strategy that is unlikely to generate the returns hoped for. A change at the top can only do so much.
• Otherwise: We discuss challenges with meeting recycling targets, declining battery prices, and funding nuclear.

Exhibit 1: Note that the stock is significantly cheaper than 2013 but this is versus a very inflated broader market. The market multiple is more than twice what it was in 2013, when the last activist entered the stock.

Source: C-MACC Estimates and Company Announcement