After taking a fresh look at industrial gas firms, we are upgrading our moat ratings for Air Liquide, Air Products, and Linde to wide from narrow, based on switching costs and intangible assets. The moat upgrade boosts our fair value estimates to EUR 185 from EUR 162 for Air Liquide, to $307 from $288 for Air Products, and to $425 from $398 for Linde.
The merger with Praxair has positioned Linde as the largest industrial gas company in the world, strengthening its competitive positioning.
Cost inflation and energy price volatility could pressure short-term margins.
|
Metric
|
LIN
|
AI
|
PPG
|
|---|---|---|---|
Price/Earnings (Normalized) | 31.32 | 30.00 | 16.76 |
Price/Book Value | 5.41 | 4.04 | 3.82 |
Price/Sales | 6.67 | 3.57 | 1.69 |
Price/Cash Flow | 22.38 | 17.14 | 14.74 |
|
Metric
|
LIN
|
AI
|
PPG
|
|---|---|---|---|
Quick Ratio | 0.62 | 0.51 | 0.96 |
Current Ratio | 0.80 | 0.87 | 1.47 |
Interest Coverage | 19.83 | 56.89 | 7.51 |
|
Metric
|
LIN
|
AI
|
PPG
|
|---|---|---|---|
Return on Assets (Normalized) | 8.80% | 6.80% | 8.42% |
Return on Equity (Normalized) | 17.60% | 13.97% | 24.67% |
Return on Invested Capital (Normalized) | 11.96% | 8.86% | 12.67% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
SHW
| Sherwin-Williams Co | Mnftrktbq | Zxcb | $77.5 Bil | |
ECL
| Ecolab Inc | Ylgljdrh | Bycjl | $62.8 Bil | |
APD
| Air Products & Chemicals Inc | Hpxfhldb | Vfhb | $52.2 Bil | |
LYB
| LyondellBasell Industries NV Class A | Kgcrjwdjn | Kqmtfy | $32.4 Bil | |
DD
| DuPont de Nemours Inc | Fjhdskfh | Vjxbsv | $30.7 Bil | |
PPG
| PPG Industries Inc | Cpfqrxlc | Nssbqz | $30.3 Bil | |
IFF
| International Flavors & Fragrances Inc | Kkqhmkzv | Jrm | $21.5 Bil | |
ALB
| Albemarle Corp | Mhdhbxmc | Pznjpzj | $13.5 Bil | |
SQM
| Sociedad Quimica Y Minera De Chile SA ADR | Wmxfqhwg | Rslvhbj | $12.3 Bil |
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