Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Chemicals industry and the overall market, PRAXAIR INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 43.00% is the gross profit margin for PRAXAIR INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.30% is above that of the industry average.
- Net operating cash flow has increased to $725.00 million or 26.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.84%.
- PRAXAIR INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRAXAIR INC increased its bottom line by earning $5.45 versus $3.84 in the prior year. This year, the market expects an improvement in earnings ($5.64 versus $5.45).
- The net income growth from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 0.9% when compared to the same quarter one year prior, going from $425.00 million to $429.00 million.
Praxair, Inc. engages in the production, distribution, and sale atmospheric and process gases, as well as surface coatings in North America, Europe, South America, and Asia. The company has a P/E ratio of 19.3, equal to the average chemicals industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Praxair has a market cap of $32.19 billion and is part of the
industry. Shares are up 0.2% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.