Praxair IncFind Ratings Reports
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 ($mil)||2644.0||2595.0|
|Net Income ($mil)||406.0||422.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||524.0||147.0|
|Total Assets ($mil)||19332.0||18319.0|
|Total Debt ($mil)||9515.0||9231.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||44.1||45.05|
|Return on Assets||7.75||8.44|
|Return on Equity||29.87||35.24|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||284.9||284.88|
|Div / share||0.75||0.72|
|Book value / share||17.62||15.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1390082.0||1409870.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 42.25 for the Chemicals industry and a value on par with the S&P 500 average of 25.11. Conducting a second comparison, its price-to-book ratio of 6.98 indicates a significant premium versus the S&P 500 average of 3.01 and a premium versus the industry average of 6.26. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|PX 23.57||Peers 42.25||PX 12.64||Peers 15.83|
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.
|PX 19.84||Peers 20.95||PX 2.51||Peers 1.32|
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.
|PX 6.98||Peers 6.26||PX -2.62||Peers 4.67|
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.
|PX 3.33||Peers 2.41||PX -2.25||Peers -0.84|
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