PRAXAIR INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. PRAXAIR INC has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 28.17% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||2738.0||3113.0|
|Net Income ($mil)||308.0||467.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||136.0||173.0|
|Total Assets ($mil)||19067.0||20925.0|
|Total Debt ($mil)||9347.0||9165.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||44.63||43.24|
|Return on Assets||7.88||8.76|
|Return on Equity||30.27||26.53|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||286.47||292.03|
|Div / share||0.72||0.65|
|Book value / share||17.33||23.67|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1332675.0||1382120.0|
HOLD. PRAXAIR INC's P/E ratio indicates a discount compared to an average of 25.44 for the Chemicals industry and a value on par with the S&P 500 average of 20.51. Conducting a second comparison, its price-to-book ratio of 6.44 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 5.34. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|PX 21.72||Peers 25.44||PX 11.85||Peers 30.14|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PX is trading at a 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 significant discount to its peers.
|PX 17.42||Peers 17.60||PX 10.39||Peers 3.14|
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 6.44||Peers 5.34||PX -16.70||Peers -5.60|
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 2.75||Peers 2.12||PX -4.39||Peers 1.07|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
PX significantly trails its peers on the basis of sales growth
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