Praxair Inc

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PX : NYSE : Basic Materials
$118.34 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,151,600
07/27/16 - 4:01 PM ET

Financial Analysis


PRAXAIR INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. PRAXAIR INC has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the 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 remained virtually unchanged only decreasing by 2.59% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2509.02757.0
EBITDA ($mil)831.0904.0
EBIT ($mil)559.0627.0
Net Income ($mil)356.0416.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)221.0117.0
Total Assets ($mil)19025.019123.0
Total Debt ($mil)9404.09396.0
Equity ($mil)4888.05018.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin44.9644.5
EBITDA Margin33.1232.78
Operating Margin22.2822.74
Sales Turnover0.550.63
Return on Assets7.818.69
Return on Equity30.4233.12
Debt Q1 FY16 Q1 FY15
Current Ratio1.61.17
Debt/Capital0.660.65
Interest Expense56.053.0
Interest Coverage9.9811.83


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)285.27288.31
Div / share0.750.72
EPS1.241.43
Book value / share17.1317.4
Institutional Own % n/a n/a
Avg Daily Volume1170684.01463425.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 24.87 for the Chemicals industry and a discount compared to the S&P 500 average of 25.09. Conducting a second comparison, its price-to-book ratio of 6.87 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 5.83. 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 22.77 Peers 24.87   PX 12.30 Peers 16.16

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PX 19.46 Peers 19.89   PX 6.10 Peers 2.34

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 6.87 Peers 5.83   PX -8.66 Peers 43.60

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 3.19 Peers 2.23   PX -12.30 Peers -6.15

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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