Rating Change #5
Chart Industries (GTLS - Get Report) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- GTLS's revenue growth has slightly outpaced the industry average of 36.1%. Since the same quarter one year prior, revenues rose by 44.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, GTLS has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 341.5% when compared to the same quarter one year prior, rising from $2.40 million to $10.59 million.
- Powered by its strong earnings growth of 337.50% and other important driving factors, this stock has surged by 204.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CHART INDUSTRIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHART INDUSTRIES INC reported lower earnings of $0.69 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $0.69).
Chart Industries, Inc. manufactures and supplies engineered equipment used in the production, storage, and end-use of hydrocarbon and industrial gases in the United States and internationally. The company has a P/E ratio of 43.9, equal to the average industrial industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Chart has a market cap of $1.5 billion and is part of the industrial goods sector and industrial industry. Shares are up 52.2% year to date as of the close of trading on Friday.You can view the full Chart Ratings Report or get investment ideas from our investment research center.