Praxair Inc

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PX : NYSE : Basic Materials
$132.23 -0.65 | -0.49%
Today's Range: 132.03 - 133.31
Avg. Daily Volume: 1369000.0
06/27/17 - 4:02 PM ET

Financial Analysis


PRAXAIR INC's gross profit margin for the first quarter of its fiscal year 2017 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 1.00 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.11% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2728.02509.0
EBITDA ($mil)881.0831.0
EBIT ($mil)594.0559.0
Net Income ($mil)389.0356.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)519.0221.0
Total Assets ($mil)19665.019025.0
Total Debt ($mil)9368.09404.0
Equity ($mil)5529.04888.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin43.3744.96
EBITDA Margin32.2933.12
Operating Margin21.7722.28
Sales Turnover0.550.55
Return on Assets7.797.81
Return on Equity27.7230.42
Debt Q1 FY17 Q1 FY16
Current Ratio1.341.6
Debt/Capital0.630.66
Interest Expense50.056.0
Interest Coverage11.889.98


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)285.35285.27
Div / share0.790.75
EPS1.351.24
Book value / share19.3817.13
Institutional Own % n/a n/a
Avg Daily Volume1352577.01411892.0

Valuation


BUY. PRAXAIR INC's P/E ratio indicates a discount compared to an average of 30.36 for the Chemicals industry and a value on par with the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 6.84 indicates a significant premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 5.57. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PX 24.85 Peers 30.36   PX 12.86 Peers 16.43

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PX 21.37 Peers 20.06   PX 2.60 Peers 4.65

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

PX is trading at a premium to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PX 6.84 Peers 5.57   PX 3.09 Peers 7.05

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PX 3.52 Peers 2.41   PX 2.13 Peers 3.40

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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