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Chart Industries (GTLS)
NYSE:GTLS
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Chart Industries
(NYSE:GTLS)
69Neutral
Positive Factors
Earnings
GTLS delivered a second straight quarter of relatively steady earnings with roughly in-line EBITDA and better free cash flow.
Negative Factors
Financial Performance
GTLS reported earnings with adjusted EBITDA below consensus expectations due to softer than expected revenues.
Guidance
There is concern about the downside risk to guidance due to a 4Q miss and backlog scheduling update.
Chart Industries (GTLS) vs. S&P 500 (SPY)
Market Cap
$6.49B
Dividend YieldN/A
Average Volume (3M)793.77K
Price to Earnings (P/E)34.2
Beta (1Y)2.39
Revenue Growth23.86%
EPS Growth740.71%
CountryUS
Employees11,637
SectorIndustrials
Sector Strength72
IndustryIndustrial Goods
Share Statistics
EPS (TTM)4.15
Shares Outstanding45,688,580
10 Day Avg. Volume1,170,680
30 Day Avg. Volume793,769
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)1.64
Price to Cash Flow (P/CF)6.10
P/FCF Ratio6.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$216.60Price Target Upside46.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Chart Industries Business Overview & Revenue Model
Company DescriptionChart Industries, Inc. (GTLS) is a leading global manufacturer of highly engineered equipment servicing multiple applications in the clean energy and industrial gas sectors. The company's core products and services include cryogenic equipment, such as storage tanks, heat exchangers, and vacuum-insulated pipes, which are vital for the storage, distribution, and end-use of liquefied natural gas (LNG), hydrogen, and other industrial gases. Chart Industries operates across diverse markets, including energy, healthcare, and food and beverage, leveraging its expertise in cryogenics and clean energy solutions to support the global transition to sustainable energy sources.
How the Company Makes MoneyChart Industries generates revenue primarily through the sale of its cryogenic and gas processing equipment and systems. Key revenue streams include the production and sale of cryogenic storage tanks, heat exchangers, liquefaction systems, and related components for the LNG, hydrogen, and industrial gas markets. The company benefits from long-term contracts with major energy and industrial gas companies, providing equipment and services essential for the storage and processing of gases. Additionally, Chart Industries engages in strategic partnerships and acquisitions to enhance its product offerings and expand its market reach, contributing to its earnings. Service and aftermarket support, such as maintenance and repair services for its equipment, also provide a recurring revenue stream for the company.
Chart Industries Financial Statement Overview
Summary
Chart Industries demonstrates strong financial health with significant revenue and profit growth. The company shows effective cost management and operational efficiency. While leverage is high, the equity base remains solid, and cash flows are positive, supporting future growth and stability.Income Statement
Chart Industries has shown a strong upward trajectory in revenue growth, with a significant increase from $1.3 billion in 2021 to $4.2 billion in 2024. The gross profit margin has improved, reflecting efficient cost management, and the net profit margin has seen a substantial rise, indicating enhanced profitability. The EBIT and EBITDA margins have strengthened, highlighting improved operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a robust equity base, with stockholders' equity growing consistently. However, the debt-to-equity ratio indicates a high leverage level, which could pose risks if not managed properly. The equity ratio shows stability, but the increase in total debt warrants caution.75
Positive
Cash Flow
The cash flow statement reveals a positive trend in free cash flow and operating cash flow, indicating good cash generation. The operating cash flow to net income and free cash flow to net income ratios are strong, showcasing efficient cash management. The free cash flow growth rate is positive, supporting the company's liquidity position.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.16B | 3.35B | 1.61B | 1.32B | 1.18B | Gross Profit |
| 1.39B | 1.04B | 407.40M | 324.20M | 332.10M | EBIT |
| 647.50M | 390.70M | 151.50M | 88.50M | 108.20M | EBITDA |
| 647.50M | 578.20M | 212.50M | 173.70M | 192.40M | Net Income Common Stockholders |
| 218.50M | 47.30M | 83.00M | 59.10M | 82.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 308.60M | 201.10M | 663.60M | 122.20M | 125.10M | Total Assets |
| 9.12B | 9.10B | 5.90B | 3.04B | 2.59B | Total Debt |
| 3.64B | 3.90B | 2.30B | 600.80M | 221.60M | Net Debt |
| 3.33B | 3.70B | 1.64B | 478.60M | 96.50M | Total Liabilities |
| 6.13B | 6.16B | 3.22B | 1.42B | 995.20M | Stockholders Equity |
| 2.83B | 2.79B | 2.68B | 1.63B | 1.59B |
| Cash Flow | Free Cash Flow | |||
| 382.20M | 31.60M | 6.60M | -74.00M | 134.80M | Operating Cash Flow |
| 503.00M | 167.20M | 80.80M | -21.30M | 172.70M | Investing Cash Flow |
| -138.80M | -3.99B | -101.60M | -361.20M | 185.00M | Financing Cash Flow |
| -243.70M | 1.41B | 2.50B | 381.90M | -363.40M |
Chart Industries Technical Analysis
Negative
147.57
Price Trends
193.76
Negative
179.61
Negative
157.14
Negative
Market Momentum
-13.67
Positive
32.39
Neutral
12.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLS, the sentiment is Negative. The current price of 147.57 is below the 20-day moving average (MA) of 177.12, below the 50-day MA of 193.76, and below the 200-day MA of 157.14, indicating a bearish trend. The MACD of -13.67 indicates Positive momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTLS.
Chart Industries Risk Analysis
Chart Industries disclosed 33 risk factors in its most recent earnings report. Chart Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chart Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $74.79B | 22.85 | 110.24% | 2.17% | -1.30% | 20.26% | |
77 Outperform | $218.51B | 34.42 | 16.87% | 1.20% | 0.46% | 7.97% | |
77 Outperform | $24.39B | 9.55 | 24.30% | 1.16% | -2.99% | 159.26% | |
72 Outperform | $63.06B | 28.21 | 9.66% | 1.77% | 10.29% | 22.72% | |
69 Neutral | $6.49B | 34.21 | 7.91% | ― | 23.86% | 740.71% | |
67 Neutral | $67.57B | 18.38 | 24.40% | 2.33% | -3.12% | 64.53% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
GTLS
Chart Industries
147.57
1.31
0.90%
APD
Air Products and Chemicals
298.08
57.20
23.75%
DOV
Dover
180.77
5.45
3.11%
EMR
Emerson Electric Company
110.72
2.33
2.15%
ITW
Illinois Tool Works
254.82
-1.93
-0.75%
LIN
Linde
454.07
-16.49
-3.50%
Chart Industries Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -19.03% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong cash flow, significant order growth, and record adjusted EBITDA and operating margins. However, challenges in the CTS segment and foreign exchange headwinds were noted. The overall sentiment is positive as highlights significantly outweigh the lowlights.Highlights
Strong Cash Flow and Leverage Reduction
Generated $281.5 million of net cash from operating activities in Q4 2024 with free cash flow of $261 million, contributing to full-year 2024 free cash flow of $388 million. Achieved a year-end 2024 net leverage ratio of 2.8, making progress towards the target of 2 to 2.5.
Significant Order Growth
Q4 2024 orders were $1.55 billion, a 29.4% increase from the previous year, contributing to full-year orders of $5 billion, a 13% increase compared to 2023.
Record Adjusted EBITDA and Operating Margin
Achieved Q4 2024 adjusted EBITDA of $283.6 million, contributing to a full-year adjusted EBITDA of $1.014 billion, with an EBITDA margin of 24.4%, a year-over-year increase of 330 basis points. Adjusted operating margin for full year 2024 was 21.1%, up 400 basis points.
Robust End Market Diversification
In 2024, Chart sold to 267 new customers and had record hydrogen sales in Europe. The commercial pipeline of opportunities not yet in backlog is approximately $24 billion, with $2 billion in customer commitments.
Strong Space Exploration Orders
Q4 2024 saw $28.4 million in space exploration orders, the highest quarterly total for the year. Orders for Q1 2025 have already reached approximately $60 million.
Lowlights
Challenges in Cryo Tank Solutions (CTS)
CTS orders in Q4 2024 decreased 11.9% compared to Q4 2023, primarily due to softer European industrial gas demand. CTS sales decreased 26.4% due to specific project sales in Q4 2023 that did not repeat.
Foreign Exchange Headwinds
Q4 2024 faced a $17 million headwind from foreign exchange in sales, and a $0.33 headwind to adjusted diluted EPS due to foreign exchange, tax rate delta, share count changes, and interest expense.
Specialty Products Margin Pressure
Q4 2024 specialty products gross profit margin decreased 120 basis points compared to Q4 2023, affected by third-party expenses and inefficiencies at the Theodore, Alabama facility.
Company Guidance
During the Chart Industries, Inc. 2024 fourth quarter and full-year earnings call, CEO Jill Evanko provided detailed financial guidance and performance metrics. The company reported $281.5 million in net cash from operating activities in Q4 2024, with free cash flow reaching $261 million after $20.5 million in CapEx, contributing to a full-year free cash flow of $388 million. Chart Industries achieved a net leverage ratio of 2.8 by year-end 2024, progressing towards a target of 2 to 2.5. Q4 orders were $1.55 billion, up 29.4% year-over-year, with full-year orders at $5 billion, a 13% increase. Sales grew 10.8% in Q4, with a full-year organic sales growth of 16.9%. Adjusted operating income for Q4 was $243.4 million, reflecting a 22% operating margin and a 33.6% gross margin. The full-year adjusted operating margin was 21.1%, up 400 basis points, while adjusted EBITDA for Q4 was $283.6 million, contributing to a full-year figure of $1.014 billion. The company anticipates further growth in 2025, with a backlog conversion supporting its guidance range, despite potential foreign exchange headwinds.Chart Industries Corporate Events
Executive/Board Changes
Chart Industries Updates CFO Compensation Agreement
Neutral
Jan 7, 2025
Chart Industries announced a new employment agreement with their CFO, Joseph R. Brinkman, which includes enhancements to his compensation package in case of involuntary termination or resignation. The agreement introduces non-competition, non-solicitation, and confidentiality clauses not present in the previous severance agreement.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.