Praxair (NYSE:PX)

Founded in 1907, Praxair, Inc. (NYSE: PX) is the largest gas supply company in North and South America, and one of the largest in the world in this sector. It produces and distributes pure gases or gases of precise composition, used in the processes of various industries. Praxair is present in nearly 30 countries, and has a portfolio of nearly 3,000 patents.

Its main products are atmospheric gases (gases that can be extracted directly from the air, such as oxygen, nitrogen, and argon) and gases that must undergo special processes to be manufactured, such as hydrogen, helium, and carbon dioxide. The company's gases are used in many industrial processes, such as steel production, semiconductors, and medical devices.

As a supplier of industrial gases to Mexico, Brazil, China, and India, Praxair is poised to benefit from growing gas consumption in these emerging markets.

Praxair offers a modest yield but showing good growth. Le Yield In the long term, it amounts to a meager 2,06%, but it shows a medium-term growth rate of 9,90%, which is quite correct. The company has also increased its dividend for 19 consecutive years.

THE distribution ratio of only 37.61% ensures the payment and growth of the dividend in the future, even in the event of a difficult passage. Furthermore, the volatility of the title, with 10.96%, is clearly below that of the market.The beta of 0.85 confirms that the title is not very sensitive to market variations.

Since 1992, Praxair has clearly beaten the market. It is worth noting thatexcellent performance of the title during the "lost decade" 2000-2010. It flew over the debates during the bursting of the Internet bubble, suffered heavily from the subprime crisis, but made up for its losses very quickly to exceed its highs in 2011. This good performance has been at the expense of the price/earnings ratio for two years. This is also quite high, at 20.86, but it remains below that of the sector (32.80). This significant P/E Ratio is also consistent with the modest performance of the stock.

One of the great qualities of PX is the good coverage that the title offers in relation to variations in the dollar. Le $risk of -0.73 thus indicates that a fall in the greenback is usually accompanied by an increase in the value of the security in CHF.

Praxair is therefore an interesting stock in several respects. However, its current valuation, both from the point of view of dividends and profits, does not allow us to consider it as a purchase opportunity. On the other hand, it is a stock that is of course keep if you already have it in your portfolio.

Sources: Wikipedia, Wikinvest, Yahoo Finance, Swissquote, dividends.ch