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Chart Industries Inc GTLS

Morningstar Rating
$165.31 +2.26 (1.39%)
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Company Report

Chart Industries Has a Winner Thus Far With Its Howden Deal

Since 2020, Chart Industries has engaged in a successful strategic pivot toward expanding its specialty portfolio of products toward high-growth areas such as hydrogen and LNG. It made several attractive investments and joint ventures with key partners that enabled it to materially increase the amount of in-house content for larger projects, lowering costs and providing more control over delivery time frames. The greater degree of control over integrating its equipment and processes was also driving pricing power, lifting margins, and increasing customer switching costs. Three-year targets introduced at its 2022 analyst day included a 17%-plus CAGR on revenue, 25%-plus CAGR on EPS, and margin expansion of 300-600 basis points.

Price vs Fair Value

GTLS is trading at a 20% discount.
Price
$159.50
Fair Value
$344.00
Uncertainty
Very High
1-Star Price
$387.00
5-Star Price
$595.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Chart is an enormous free cash flow generator, with a historical free cash flow margin well above 80%, and it targets 90%-plus after acquiring Howden.

Bears

The Howden deal carries materially more financial and execution risk than any prior deal completed by Chart. Chart invested about $450 million in deals from 2020-22, while Howden is almost 10 times those investments.

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News

Trading Information

Previous Close Price
$163.05
Day Range
$163.20167.10
52-Week Range
$105.90184.65
Bid/Ask
$109.00 / $262.84
Market Cap
$6.99 Bil
Volume/Avg
513,562 / 572,390

Key Statistics

Price/Earnings (Normalized)
27.10
Price/Sales
2.31
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Chart Industries provides a variety of cryogenic equipment for storage, distribution, and other processes within the industrial gas and liquefied natural gas (LNG) industries. It also provides natural gas processing solutions for the natural gas industry and specialty products that serve a variety of spaces, including hydrogen, biofuels, cannabis, and water treatment. The firm acquired Howden in a significant deal in early 2023, roughly doubling the size of the company.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Small Growth
Total Number of Employees
11,637

Competitors

Valuation

Metric
GTLS
AI
LIN
Price/Earnings (Normalized)
27.1031.7432.81
Price/Book Value
2.544.165.66
Price/Sales
2.313.676.99
Price/Cash Flow
28.7717.6423.45
Price/Earnings
GTLS
AI
LIN

Financial Strength

Metric
GTLS
AI
LIN
Quick Ratio
0.770.510.62
Current Ratio
1.190.870.80
Interest Coverage
1.2156.8919.83
Quick Ratio
GTLS
AI
LIN

Profitability

Metric
GTLS
AI
LIN
Return on Assets (Normalized)
1.46%6.80%8.80%
Return on Equity (Normalized)
4.63%13.97%17.60%
Return on Invested Capital (Normalized)
5.78%8.86%11.96%
Return on Assets
GTLS
AI
LIN
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