PRAXAIR INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. PRAXAIR INC has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 5.50% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||3144.0||3013.0|
|Net Income ($mil)||477.0||445.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||168.0||134.0|
|Total Assets ($mil)||20384.0||20062.0|
|Total Debt ($mil)||9121.0||9026.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||43.38||43.68|
|Return on Assets||9.15||8.44|
|Return on Equity||28.47||27.29|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||291.37||294.36|
|Div / share||0.65||0.6|
|Book value / share||22.49||21.1|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1373236.0||910728.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 36.83 for the Chemicals industry and a value on par with the S&P 500 average of 19.74. Conducting a second comparison, its price-to-book ratio of 5.61 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 4.73. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|PX 20.04||Peers 36.83||PX 12.05||Peers 15.20|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PX is trading at a significant discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
PX is trading at a discount to its peers.
|PX 18.57||Peers 19.20||PX 2.94||Peers 1.70|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
PX is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
PX trades at a significant premium to its peers.
|PX 5.61||Peers 4.73||PX 11.30||Peers 36.61|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
PX is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, PX is expected to significantly trail its peers on the basis of its earnings growth rate.
|PX 2.99||Peers 2.32||PX 4.94||Peers 3.97|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
PX is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
PX has a sales growth rate that exceeds its peers.
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