Chart Industries (GTLS) AI Stock Analysis

• Market Cap: $6.07B
• Dividend Yield: N/A
• Average Volume (3M): 766.10K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 2.25
• Revenue Growth: 23.86%
• EPS Growth: 740.71%
• Country: US
• Employees: 11,928
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 4.15
• Shares Outstanding: 44,936,220
• 10 Day Avg. Volume: 659,621
• 30 Day Avg. Volume: 766,096
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.91
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $209.31
• Price Target Upside: 54.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Chart Industries shows strong financial performance and a positive earnings outlook, supported by significant revenue growth and effective cost management. However, the technical analysis indicates bearish momentum, and the lack of a dividend yield affects its valuation appeal. The positive earnings call sentiment, driven by order growth and improved margins, contributes to a favorable overall score.

Positive Factors

Debt Management

GTLS continues to deleverage, paying down significant debt and moving towards its long-term leverage target, which could lead to future growth opportunities.

Growth Opportunities

GTLS is experiencing broad-based strength in diverse end markets such as oil & gas, LNG, hydrogen, carbon capture, and space exploration.

Valuation

There is an opportunity for the share price to appreciate further given that GTLS still trades at a discount to its Industrial peers.

Negative Factors

Cash Flow

Unbilled contract revenue has increased significantly, creating a drag on the company's free cash flow.

Financial Performance

Earnings per share estimates for the first quarter have been lowered due to unexpected foreign exchange headwinds.

Guidance Concerns

There is concern about the downside risk to guidance due to a 4Q miss and backlog scheduling update.

Chart Industries Business Overview & Revenue Model

Company Description

Chart Industries, Inc. manufactures and sells engineered equipment for the energy and industrial gas industries worldwide. The company operates through four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers process technology, liquefaction train, and critical equipment for the LNG, including small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum, Core-in-Kettle, heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the power, heating, ventilation, air conditioning, and refining applications. In addition, it provides highly engineered equipment that is used in specialty end-market applications for hydrogen, LNG, biogas, CO2 Capture, food and beverage, aerospace, lasers, cannabis, and water treatment; and cryogenic components, including vacuum insulated pipes, specialty liquid nitrogen, end-use equipment, and cryogenic flow meters. Additionally, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment, including brazed aluminum heat exchangers, cold boxes, etc.; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. The company was founded in 1859 and is based in Ball Ground, Georgia.

How the Company Makes Money

Chart 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. Effective cost management and operational efficiency are evident. However, high leverage remains a potential risk despite a robust equity base and strong cash flows.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 135.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLS, the sentiment is Neutral. The current price of 135.87 is above the 20-day moving average (MA) of 128.10, below the 50-day MA of 149.21, and below the 200-day MA of 155.80, indicating a neutral trend. The MACD of -4.76 indicates Negative momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GTLS.

Chart Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	78 Outperform	$6.23B	31.09	15.65%	―	13.94%	37.49%
WTS	78 Outperform	$6.89B	23.73	18.08%	0.83%	9.53%	10.98%
FLS	76 Outperform	$5.88B	20.90	14.34%	1.87%	5.49%	51.02%
GTLS	73 Outperform	$6.07B	32.54	7.91%	―	23.86%	740.71%
GNRC	66 Neutral	$6.76B	21.02	13.46%	―	6.79%	64.30%
RRX	66 Neutral	$7.03B	36.05	3.11%	1.31%	-3.47%	―
Sector *	63 Neutral	$4.29B	11.36	5.34%	214.53%	4.14%	-9.10%

Chart Industries Corporate Events

Chart Industries Updates CFO Compensation Agreement

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.