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Praxair

NYSE:PX
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PX
NYSE
$47B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Praxair, Inc. produces and distributes industrial gases. The last earnings update was 97 days ago. More info.


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PX Share Price and Events
7 Day Returns
2%
NYSE:PX
-2.9%
US Chemicals
-3.5%
US Market
1 Year Returns
12.6%
NYSE:PX
-10.2%
US Chemicals
7%
US Market
PX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Praxair (PX) 2% -2.6% 0.4% 12.6% 48.1% 31.9%
US Chemicals -2.9% -12.6% -13.4% -10.2% 29.9% 32.9%
US Market -3.5% -9.3% -5.9% 7% 47.1% 93.6%
1 Year Return vs Industry and Market
  • PX outperformed the Chemicals industry which returned -10.2% over the past year.
  • PX outperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
PX
Industry
5yr Volatility vs Market

PX Value

 Is Praxair undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Praxair to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Praxair.

NYSE:PX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.028 (1 + (1- 21%) (17.88%))
1.173
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.173 * 7.05%)
11.22%

Discounted Cash Flow Calculation for NYSE:PX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Praxair is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PX DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 1,921.00 2,026.80 1,946.67 2,239.00 2,202.71
Source Analyst x8 Analyst x5 Analyst x3 Analyst x1 Est @ -1.62%
Present Value
Discounted (@ 11.22%)
1,727.22 1,638.51 1,414.98 1,463.30 1,294.36
Present value of next 5 years cash flows $7,538.37
NYSE:PX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $2,202.71 × (1 + 2.95%) ÷ (11.22% – 2.95%)
$27,422.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $27,422.89 ÷ (1 + 11.22%)5
$16,114.31
NYSE:PX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $7,538.37 + $16,114.31
$23,652.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $23,652.69 / 287.58
$82.25
NYSE:PX Discount to Share Price
Calculation Result
Value per share (USD) From above. $82.25
Current discount Discount to share price of $164.50
= -1 x ($164.50 - $82.25) / $82.25
-100%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Praxair is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Praxair's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Praxair's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $4.85
NYSE:PX Share Price ** NYSE (2018-10-30) in USD $164.5
United States of America Chemicals Industry PE Ratio Median Figure of 63 Publicly-Listed Chemicals Companies 19.85x
United States of America Market PE Ratio Median Figure of 2,955 Publicly-Listed Companies 18.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Praxair.

NYSE:PX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PX Share Price ÷ EPS (both in USD)

= 164.5 ÷ 4.85

33.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Praxair is overvalued based on earnings compared to the US Chemicals industry average.
  • Praxair is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Praxair's expected growth come at a high price?
Raw Data
NYSE:PX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
8.9%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 43 Publicly-Listed Chemicals Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,073 Publicly-Listed Companies 1.23x

*Line of best fit is calculated by linear regression .

NYSE:PX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.89x ÷ 8.9%

3.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Praxair is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Praxair's assets?
Raw Data
NYSE:PX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $20.96
NYSE:PX Share Price * NYSE (2018-10-30) in USD $164.5
United States of America Chemicals Industry PB Ratio Median Figure of 91 Publicly-Listed Chemicals Companies 1.95x
United States of America Market PB Ratio Median Figure of 4,961 Publicly-Listed Companies 1.82x
NYSE:PX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PX Share Price ÷ Book Value per Share (both in USD)

= 164.5 ÷ 20.96

7.85x

* Primary Listing of Praxair.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Praxair is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Praxair's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Praxair has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PX Future Performance

 How is Praxair expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Praxair expected to grow at an attractive rate?
  • Praxair's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Praxair's earnings growth is positive but not above the United States of America market average.
  • Praxair's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 8.9%
NYSE:PX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 6%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 16,438 4,047 2,696 1
2021-12-31 14,564 3,989 2,402 3
2020-12-31 13,605 3,757 2,254 10
2019-12-31 12,822 3,477 2,110 14
2018-12-31 12,215 2,460 1,942 16
NYSE:PX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 11,935 3,108 1,394
2018-03-31 11,708 3,019 1,320
2017-12-31 11,437 3,041 1,247
2017-09-30 11,128 2,931 1,620
2017-06-30 10,922 2,925 1,540
2017-03-31 10,753 2,930 1,533
2016-12-31 10,534 2,773 1,500
2016-09-30 10,485 2,838 1,516
2016-06-30 10,455 2,726 1,578
2016-03-31 10,528 2,740 1,487
2015-12-31 10,776 2,695 1,547
2015-09-30 11,171 2,676 1,427

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Praxair's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Praxair's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Praxair Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 8.76 8.76 8.76 1.00
2021-12-31 8.15 8.17 8.13 2.00
2020-12-31 7.53 7.72 7.25 4.00
2019-12-31 7.17 7.50 6.97 6.00
2018-12-31 6.64 6.89 6.51 5.00
NYSE:PX Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 4.85
2018-03-31 4.60
2017-12-31 4.36
2017-09-30 5.67
2017-06-30 5.39
2017-03-31 5.37
2016-12-31 5.25
2016-09-30 5.31
2016-06-30 5.53
2016-03-31 5.20
2015-12-31 5.39
2015-09-30 4.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Praxair is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Praxair's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Praxair has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PX Past Performance

  How has Praxair performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Praxair's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Praxair's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Praxair's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Praxair's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.
Earnings and Revenue History
Praxair's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Praxair Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 11,935.00 1,394.00 1,246.00 95.00
2018-03-31 11,708.00 1,320.00 1,244.00 94.00
2017-12-31 11,437.00 1,247.00 1,207.00 93.00
2017-09-30 11,128.00 1,620.00 1,158.00 92.00
2017-06-30 10,922.00 1,540.00 1,145.00 91.00
2017-03-31 10,753.00 1,533.00 1,146.00 92.00
2016-12-31 10,534.00 1,500.00 1,145.00 92.00
2016-09-30 10,485.00 1,516.00 1,148.00 92.00
2016-06-30 10,455.00 1,578.00 1,138.00 93.00
2016-03-31 10,528.00 1,487.00 1,127.00 92.00
2015-12-31 10,776.00 1,547.00 1,152.00 93.00
2015-09-30 11,171.00 1,427.00 1,197.00 94.00
2015-06-30 11,629.00 1,503.00 1,243.00 96.00
2015-03-31 12,004.00 1,662.00 1,281.00 97.00
2014-12-31 12,273.00 1,694.00 1,308.00 96.00
2014-09-30 12,293.00 1,866.00 1,320.00 98.00
2014-06-30 12,162.00 1,834.00 1,329.00 97.00
2014-03-31 12,063.00 1,812.00 1,338.00 97.00
2013-12-31 11,925.00 1,755.00 1,349.00 98.00
2013-09-30 11,714.00 1,695.00 1,336.00 97.00
2013-06-30 11,475.00 1,680.00 1,306.00 97.00
2013-03-31 11,272.00 1,664.00 1,272.00 98.00
2012-12-31 11,224.00 1,692.00 1,270.00 98.00
2012-09-30 11,221.00 1,698.00 1,266.00 96.00
2012-06-30 11,343.00 1,697.00 1,267.00 94.00
2012-03-31 11,390.00 1,693.00 1,266.00 92.00
2011-12-31 11,252.00 1,672.00 1,239.00 90.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Praxair has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Praxair used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Praxair has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Praxair's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Praxair has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PX Health

 How is Praxair's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Praxair's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Praxair's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Praxair's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Praxair's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Praxair Company Filings, last reported 4 months ago.

NYSE:PX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 6,542.00 8,459.00 479.00
2018-03-31 6,897.00 8,843.00 545.00
2017-12-31 6,522.00 9,000.00 617.00
2017-09-30 6,742.00 9,237.00 607.00
2017-06-30 6,270.00 9,367.00 535.00
2017-03-31 5,975.00 9,368.00 519.00
2016-12-31 5,452.00 9,515.00 528.00
2016-09-30 5,649.00 9,842.00 627.00
2016-06-30 5,559.00 9,956.00 567.00
2016-03-31 5,424.00 9,404.00 221.00
2015-12-31 4,906.00 9,231.00 147.00
2015-09-30 4,813.00 9,517.00 136.00
2015-06-30 5,519.00 9,347.00 136.00
2015-03-31 5,563.00 9,396.00 117.00
2014-12-31 6,186.00 9,225.00 126.00
2014-09-30 7,130.00 9,121.00 168.00
2014-06-30 7,500.00 9,165.00 173.00
2014-03-31 7,193.00 9,270.00 144.00
2013-12-31 7,310.00 8,811.00 138.00
2013-09-30 6,865.00 9,026.00 134.00
2013-06-30 6,544.00 9,106.00 102.00
2013-03-31 6,781.00 8,676.00 113.00
2012-12-31 6,673.00 7,362.00 157.00
2012-09-30 6,589.00 7,136.00 108.00
2012-06-30 6,126.00 6,995.00 104.00
2012-03-31 6,499.00 6,856.00 107.00
2011-12-31 6,017.00 6,562.00 90.00
  • Praxair's level of debt (129.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (139.1% vs 129.3% today).
  • Debt is well covered by operating cash flow (36.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.6x coverage).
X
Financial health checks
We assess Praxair's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Praxair has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PX Dividends

 What is Praxair's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.01%
Current annual income from Praxair dividends. Estimated to be 2.14% next year.
If you bought $2,000 of Praxair shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Praxair's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Praxair's dividend is below the markets top 25% of dividend payers in United States of America (3.58%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 52 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1976 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 3.30 1.00
2021-12-31 3.88 3.00
2020-12-31 3.65 10.00
2019-12-31 3.59 14.00
2018-12-31 3.29 13.00
NYSE:PX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-07-26 3.300 2.058
2018-04-26 3.300 2.075
2018-01-25 3.300 2.176
2017-10-26 3.150 2.050
2017-07-27 3.150 2.325
2017-04-27 3.150 2.385
2017-01-26 3.150 2.660
2016-10-27 3.000 2.536
2016-07-28 3.000 2.521
2016-04-29 3.000 2.646
2016-01-29 3.000 2.739
2015-10-29 2.860 2.701
2015-07-29 2.860 2.656
2015-04-29 2.860 2.381
2015-01-28 2.860 2.308
2014-10-29 2.600 2.046
2014-07-23 2.600 2.020
2014-04-23 2.600 1.976
2014-01-29 2.600 2.010
2013-10-30 2.400 1.888
2013-07-24 2.400 1.993
2013-04-24 2.400 2.079
2013-01-23 2.400 2.154
2012-10-24 2.200 2.024
2012-07-25 2.200 2.075
2012-04-25 2.200 2.034
2012-01-25 2.200 1.993
2011-10-26 2.000 1.937
2011-07-27 2.000 2.049
2011-04-27 2.000 1.914
2011-01-26 2.000 2.024
2010-10-27 1.800 1.935
2010-07-28 1.800 2.030
2010-04-28 1.800 2.259
2010-01-27 1.800 2.241
2009-10-28 1.600 1.966
2009-07-29 1.600 2.024
2009-04-29 1.600 2.205
2009-01-28 1.600 2.477
2008-11-03 1.500 2.556

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Praxair's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Praxair's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Praxair afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Praxair has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PX Management

 What is the CEO of Praxair's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stephen Angel
COMPENSATION $21,969,670
AGE 62
TENURE AS CEO 11.8 years
CEO Bio

Mr. Stephen F. Angel, also known as Steve, has been the Chief Executive Officer of Praxair Inc., an affiliate of Praxair Peru S.R.L. and Praxair Healthcare Services, Inc. since January 1, 2007. Mr. Angel served as President of Praxair Inc. since March 1, 2006 until December 2006. He has been the Chairman of Praxair Inc. since May 1, 2007 and its Executive Director since April 2006. He served as the Chief Operating Officer of Praxair Inc. since March 1, 2006 until December 2006 and served as its Executive Vice President from 2001 to March 2006. Mr. Angel served as General Manager for the General Electric Company Industrial Systems Power Equipment business. Mr. Angel joined GE's Electrical Distribution and Control (ED&C) business in 1979 and after a series of promotions in sales and marketing became general manager of the switchgear business in 1992. Since 1995, he served as General Manager of Marketing for ED&C. He served as General Manager for Marketing & Sales of GE's Transportation Systems business from 1996 to 1999. He has been an Independent Director of PPG Industries Inc. since December 09, 2010 and Member of the Board of Directors at Praxair Peru S.R.L. since May 2007. Mr. Angel serves as a Director of US-China Business Council, Inc., and also serves on the Board of the National Association of Manufacturers. He serves as a Member of Advisory Board of Hankamer School of Business. He is a Member of the Business Roundtable and the U.S.-Brazil CEO Forum. Mr. Angel received a Bachelor of Science degree in Civil Engineering from North Carolina State University and Master's degree in Business Administration from Loyola College in Baltimore.

CEO Compensation
  • Stephen's compensation has increased by more than 20% in the past year.
  • Stephen's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Praxair management team in years:

4.8
Average Tenure
48
Average Age
  • The tenure for the Praxair management team is about average.
Management Team

Stephen Angel

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
62
TENURE
11.8 yrs

Matt White

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
46
TENURE
4.8 yrs

Anne Roby

TITLE
Senior Vice President
COMPENSATION
$4M
AGE
53
TENURE
4.8 yrs

Eduardo Menezes

TITLE
Executive Vice President
COMPENSATION
$7M
AGE
55
TENURE
14.8 yrs

Kelcey Hoyt

TITLE
VP, Controller & Chief Accounting Officer
AGE
48

Todd Skare

TITLE
Chief Technology Officer
AGE
47
TENURE
4.8 yrs

Earl Newsome

TITLE
Chief Information Officer & VP
TENURE
2.8 yrs

Juan Pelaez

TITLE
Director of Investor Relations
TENURE
2.2 yrs

Guillermo Bichara

TITLE
VP, General Counsel & Corporate Secretary
AGE
43
TENURE
3.8 yrs

Fabricio Nunes

TITLE
Chief Compliance Officer & Assistant General Counsel
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Praxair board of directors in years:

10.8
Average Tenure
70
Average Age
  • The average tenure for the Praxair board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Stephen Angel

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
62
TENURE
11.4 yrs

Raymond LeBoeuf

TITLE
Independent Director
COMPENSATION
$299K
AGE
71
TENURE
21.8 yrs

Bob Wood

TITLE
Lead Director
COMPENSATION
$324K
AGE
63
TENURE
5.8 yrs

Edward Galante

TITLE
Independent Director
COMPENSATION
$284K
AGE
67
TENURE
10.8 yrs

Larry Mcvay

TITLE
Independent Director
COMPENSATION
$299K
AGE
70
TENURE
10.8 yrs

Nance Dicciani

TITLE
Independent Director
COMPENSATION
$299K
AGE
70
TENURE
10 yrs

Claire Gargalli

TITLE
Director
COMPENSATION
$42K
AGE
75

Wayne Smith

TITLE
Independent Director
COMPENSATION
$284K
AGE
72
TENURE
17.8 yrs

Oscar De Bernardes

TITLE
Independent Director
COMPENSATION
$269K
AGE
72
TENURE
8.3 yrs

Martin Richenhagen

TITLE
Independent Director
COMPENSATION
$269K
AGE
65
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price (USD) Value (USD)
26. Feb 18 Buy Scott Telesz Individual 21. Feb 17 21. Feb 17 67 $118.37 $7,930.79
X
Management checks
We assess Praxair's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Praxair has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PX News

External News
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Simply Wall St News

Interested In Praxair Inc (NYSE:PX)? Here's How It Performed Recently

Was PX's recent earnings decline indicative of a tough track record. … PX's trailing twelve-month earnings (from 30 June 2018) of US$1.4b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -5.3%, indicating the rate at which PX is growing has slowed down

Simply Wall St -

What is Behind Praxair Inc's (NYSE:PX) Superior ROE?

and want to learn about Return on Equity using a real-life example. … With more debt, PX can invest even more and earn more money, thus pushing up its returns. … However, ROE only measures returns against equity, not debt.

Simply Wall St -

Praxair Inc (NYSE:PX): Time For A Financial Health Check

the key to extending previous success is in the health of the company’s financials. … This article will examine Praxair’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Is Praxair Inc (NYSE:PX) A Smart Choice For Dividend Investors?

There is a lot to be liked about Praxair Inc (NYSE:PX) as an income stock, over the past 10 years it has returned an average of 2.00% per year. … The company is currently worth US$44.31b, and now yields roughly 2.12%. … Does Praxair tick all the boxes of a great dividend stock?

Simply Wall St -

Is Praxair Inc's (NYSE:PX) PE Ratio A Signal To Sell For Investors?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Praxair Inc (NYSE:PX)’s fundamentals and stock market performance. … While this makes PX appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

What Should You Know About Praxair Inc's (NYSE:PX) Future Margins?

Praxair Inc's (NYSE:PX) … remarkably upbeat outlook for net income … drives analysts to forecast

Simply Wall St -

How Does Praxair Inc (NYSE:PX) Fare As A Dividend Stock?

The company currently pays out a dividend yield of 2.06% to shareholders, making it a relatively attractive dividend stock. … See our latest analysis for Praxair 5 questions to ask before buying a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it paying an annual yield above 75% of dividend payers? … In the near future, analysts are predicting lower payout ratio of 51.82%, leading to a dividend yield of around 2.20%.

Simply Wall St -

How Do Analysts See Praxair Inc's (NYSE:PX) Margin Performing In The Years Ahead?

View our latest analysis for Praxair Understanding PX's earnings with profit margin In general, the value that accrues to equity holders is partly reliant on the ability of a company to convert sales revenue in to earnings. … Margin Calculation for PX Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.25 Billion ÷ 11.44 Billion = 10.90% There has been a contraction in Praxair's margin over the past five years, due to net income declining at -1.43% on average, which was more than the average fall in revenue of -0.64%, which suggests that the falling revenue has also resulted in a decline in the net income that is converted from from the top line. … But as a result of improved cost efficiency, net income growth is expected to exceed revenue growth, which is causing the expectation for margins to expand.

Simply Wall St -

Is Praxair Inc's (NYSE:PX) ROE Of 20.06% Sustainable?

Check out our latest analysis for Praxair Peeling the layers of ROE – trisecting a company’s profitability Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Praxair’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:PX Last Perf Mar 20th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Is Now The Right Time To Buy Praxair Inc (NYSE:PX)?

This tells us that Praxair is overvalued compared to the US market average ratio of 18.77x , and overvalued based on current earnings compared to the chemicals industry average of 18.6x. … However, to properly examine the value of a high-growth stock such as Praxair, we must reflect its earnings growth into the valuation. … So, when we include the growth factor in our analysis, Praxair appears a bit overvalued , based on its fundamentals.

Simply Wall St -

PX Company Info

Map
Description

Praxair, Inc. produces and distributes industrial gases. The company offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It also supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. In addition, the company offers electric arc, plasma and wire spray, and high-velocity oxy-fuel equipment; and distributes hardgoods and welding equipment purchased from independent manufacturers. It serves various industries, such as healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1907 and is headquartered in Danbury, Connecticut.

Details
Name: Praxair, Inc.
PX
Exchange: NYSE
Founded: 1907
$47,306,216,468
287,575,784
Website: http://www.praxair.com
Address: Praxair, Inc.
10 Riverview Drive,
Danbury,
Connecticut, 06810,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PX Common Stock New York Stock Exchange US USD 17. Jun 1992
DB PXR Common Stock Deutsche Boerse AG DE EUR 17. Jun 1992
LSE 0KNT Common Stock London Stock Exchange GB USD 17. Jun 1992
Number of employees
Current staff
Staff numbers
26,658
Praxair employees.
Industry
Industrial Gases
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/31 21:12
End of day share price update: 2018/10/30 00:00
Last estimates confirmation: 2018/10/24
Last earnings filing: 2018/07/26
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.