Chart Industries Inc (NYSE: GTLS)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000892553
Market Cap 8.36 Bn
P/B 2.61
P/E 211.60
P/S 1.95
ROIC (Qtr) 4.49
Div Yield % 0.00
Rev 1y % (Qtr) 3.59
Total Debt (Qtr) 3.65 Bn
Debt/Equity (Qtr) 1.14
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About

Chart Industries, Inc., a Delaware corporation, operates under the ticker symbol GTLS in the energy, industrial, power, HVAC, and refining industries. This leading global provider specializes in process technologies and equipment for the Nexus of Clean, which includes clean power, clean water, clean food, and clean industrials. Chart Industries' main business activities involve the design, engineering, and manufacturing of process technologies and equipment for handling and processing gas and liquid molecules. With a presence in various countries...

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Investment thesis

Bull case

  • Operating cash flow of 485.30M provides exceptional 38.21x coverage of minority interest expenses 12.70M, showing strong core operations.
  • Robust free cash flow of 397.50M exceeds capital expenditure of 87.80M by 4.53x, indicating strong organic growth funding capability.
  • Operating cash flow of 485.30M provides strong 24.27x coverage of stock compensation 20M, indicating sustainable incentive practices.
  • Cash position of 399.20M provides exceptional 31.43x coverage of minority interest expenses 12.70M, indicating strong liquidity.
  • Cash reserves of 399.20M provide ample 65.44x coverage of acquisition spending 6.10M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 485.30M barely covers its investment activities of (90.50M), with a coverage ratio of -5.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 485.30M provides insufficient coverage of deferred revenue obligations of 1.36B, which is 0.36x, raising concerns about future service delivery capabilities.
  • Operating earnings of 392.60M show weak coverage of depreciation charges of 278.60M, with a 1.41 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 397.50M represents just -1.52x of debt issuance (261.20M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 278.60M relative to operating cash flow of 485.30M, which is 0.57x suggests significant maintenance capital requirements affecting free cash flow.

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.19 2.28
EV to Cash from Ops. EV/CFO 24.07 37.14
EV to Debt EV to Debt 3.20 34.39
EV to EBIT EV/EBIT 29.76 27.71
EV to EBITDA EV/EBITDA 16.76 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 29.39 133.36
EV to Market Cap EV to Market Cap 1.40 1.04
EV to Revenue EV/Rev 2.72 39.88
Price to Book Value [P/B] P/B 2.61 6.22
Price to Earnings [P/E] P/E 211.60 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.45 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 1.26 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 27.14 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 28.69 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -26.70 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -20.80 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -32.53 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -67.46 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -74.55 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 71.78 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.40 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.20 3.01
Current Ratio Curr Ratio (Qtr) 1.40 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 1.14 0.38
Interest Cover Ratio Int Coverage (Qtr) 1.26 12.34
Times Interest Earned Times Interest Earned (Qtr) 1.26 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.60 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 9.15 -7,413.30
EBT Margin % EBT Margin % (Qtr) 1.87 -9,015.79
Gross Margin % Gross Margin % (Qtr) 33.80 -32.61
Net Profit Margin % Net Margin % (Qtr) 0.90 -7,962.06