Praxair Inc.

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PX : NYSE : Process Industries
$150.1 up 0.52 | 0.35%
Today's Range: 149.87 - 151.14
Avg. Daily Volume: 1904000.0
03/20/18 - 3:59 PM ET

Financial Analysis

PRAXAIR INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PRAXAIR INC has weak liquidity. Currently, the Quick Ratio is 0.73 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 19.85% 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 FY17 Q4 FY16
Net Sales ($mil)2953.02644.0
EBITDA ($mil)953.0871.0
EBIT ($mil)646.0586.0
Net Income ($mil)33.0406.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)617.0524.0
Total Assets ($mil)20436.019332.0
Total Debt ($mil)9000.09515.0
Equity ($mil)6018.05021.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin43.7944.1
EBITDA Margin32.2732.94
Operating Margin21.8822.16
Sales Turnover0.560.54
Return on Assets6.17.75
Return on Equity20.7229.87
Debt Q4 FY17 Q4 FY16
Current Ratio0.991.16
Interest Expense46.048.0
Interest Coverage14.0412.21

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)286.78284.9
Div / share0.790.75
Book value / share20.9817.62
Institutional Own % n/a n/a
Avg Daily Volume1959533.01489177.0


HOLD. This stock's P/E ratio indicates a premium compared to an average of 35.66 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.66. For additional comparison, its price-to-book ratio of 7.42 indicates a significant premium versus the S&P 500 average of 3.28 and a significant premium versus the industry average of 4.51. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PRAXAIR INC proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PX 36.03 Peers 35.66   PX 14.68 Peers 16.38

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

PX is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PX 21.47 Peers 18.11   PX 0.67 Peers 8.35

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 significant 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PX 7.42 Peers 4.51   PX -17.25 Peers 357.01

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 significant 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PX 3.90 Peers 2.55   PX 8.57 Peers 16.32

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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