Praxair Inc

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PX : NYSE : Basic Materials
$117.67 up 0.6 | 0.51%
Today's Range: 116.47 - 118.15
Avg. Daily Volume: 1439700.0
03/23/17 - 3:59 PM ET

Financial Analysis


PRAXAIR INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PRAXAIR INC has weak liquidity. Currently, the Quick Ratio is 0.87 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.

During the same period, stockholders' equity ("net worth") has increased by 14.39% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2644.02595.0
EBITDA ($mil)871.0871.0
EBIT ($mil)586.0596.0
Net Income ($mil)406.0422.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)524.0147.0
Total Assets ($mil)19332.018319.0
Total Debt ($mil)9515.09231.0
Equity ($mil)5021.04389.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin44.145.05
EBITDA Margin32.9433.56
Operating Margin22.1622.97
Sales Turnover0.540.59
Return on Assets7.758.44
Return on Equity29.8735.24
Debt Q4 FY16 Q4 FY15
Current Ratio1.161.39
Debt/Capital0.650.68
Interest Expense48.049.0
Interest Coverage12.2112.16


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)284.9284.88
Div / share0.750.72
EPS1.411.47
Book value / share17.6215.41
Institutional Own % n/a n/a
Avg Daily Volume1499541.01200381.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 39.28 for the Chemicals industry and a discount compared to the S&P 500 average of 26.73. Conducting a second comparison, its price-to-book ratio of 6.65 indicates a significant premium versus the S&P 500 average of 2.98 and a premium versus the industry average of 6.22. 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 22.44 Peers 39.28   PX 12.03 Peers 16.00

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PX 18.89 Peers 20.59   PX 2.39 Peers 1.86

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PX 6.65 Peers 6.22   PX -2.62 Peers -9.06

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PX is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

PX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PX 3.17 Peers 2.38   PX -2.25 Peers -1.60

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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