PX - Embedded Expectations Analysis - 2018 10 17
Praxair Inc. (PX:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 27.7x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about organic sales growth, trucking solutions, and their hydrogen businessSpecifically, management may lack confidence in their ability to sustain strong organic sales growth, particularly in the energy market. Furthermore, they may lack confidence in their statement that they expect to see similar business trends across all their segments for Q3 2018, and in the sustainability of increased operating rates in Europe. Moreover, they may have concerns about the use of outside truckers for surge capacity and ongoing variables in the business, and their ability to maintain recent strength in their hydrogen business. Finally, they may have concerns about the performance of their CO2 acquisition and small on-site projects
Praxair is an industrial gas company in North and South America. The company's operations consist of two main product lines: industrial gases and surface technologies. The industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). The company's surface technologies segment supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. The company's subsidiary, Praxair Surface Technologies, supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.
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