Praxair Inc

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PX : NYSE : Basic Materials
$117.39 | %
Today's Range: 115.88 - 117.39
Avg. Daily Volume: 1346200.0
01/20/17 - 4:03 PM ET

Financial Analysis


PRAXAIR INC's gross profit margin for the third 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 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.00% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2716.02686.0
EBITDA ($mil)866.0887.0
EBIT ($mil)582.0611.0
Net Income ($mil)339.0401.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)627.0136.0
Total Assets ($mil)19886.018456.0
Total Debt ($mil)9842.09517.0
Equity ($mil)5245.04264.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin43.5644.6
EBITDA Margin31.8833.02
Operating Margin21.4322.75
Sales Turnover0.530.61
Return on Assets7.627.73
Return on Equity28.933.46
Debt Q3 FY16 Q3 FY15
Current Ratio1.341.28
Debt/Capital0.650.69
Interest Expense52.043.0
Interest Coverage11.1914.21


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)285.39284.85
Div / share0.750.72
EPS1.181.4
Book value / share18.3814.97
Institutional Own % n/a n/a
Avg Daily Volume1333065.01225217.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 29.92 for the Chemicals industry and a discount compared to the S&P 500 average of 25.41. Conducting a second comparison, its price-to-book ratio of 6.32 indicates a significant premium versus the S&P 500 average of 2.83 and a premium versus the industry average of 5.46. 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 21.99 Peers 29.92   PX 11.67 Peers 14.66

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 19.51 Peers 21.05   PX 9.09 Peers 2.07

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 6.32 Peers 5.46   PX 7.31 Peers -12.11

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.

 

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 3.16 Peers 2.30   PX -6.15 Peers -5.56

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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