Praxair, Inc. (NYSE:PX)

-Customers sign long-term contracts that are indexed for inflation, which will protect margins over time (especially so in an inflationary period)
-Provides a vital product (gas) to numerous manufacturing/processing industries
-Generates strong operating cash flows and solid profit margins, and looks set to do so for a long time

Thumbs up.

Gases evaporate in summer - more lost, more to replace

Praxair issued bonds a while back and include share repurchase in the use of proceeds. Bond move so I did a little research to see if it was also a Foolish move.
http://www.fool.com/investing/general/2012/02/15/some-gas-for-your-portfolio.aspx

Turns out the company is fairly priced with a solid track record of earnings and dividend growth. In fact, if the 19-year streak of divvy hikes continues, using record low interest borrowing to buy shares probably improves after tax cash flow in a couple of years.

Combine that with a business - industrial gasses - that should improve as the economy recovers and a green thumb is in order.

Disclosure: No position in PX at time of posting.

It has specialty gases that industry needs

http://online.barrons.com/article/SB50001424052748704892704577002263156597768.html?mod=BOL_hps_highlight_top

growing share in Asia (where most future global growth will occur); a commitment (gaining increasing popularity) to reducing natural resources use / environmental impact; own personal gut-feel (I bought in Dec 2009 and have already earned a 30% return despite the interceding economic crises)

demand should remain stable despite economy

growth area

Strong business, strong base of operations, expanding into emerging markets rapidly and an environmentally-conscious company. Contracts provide for relatively stable profits with on-site production. Will be stable during recessions and will expand rapidly as global growth begins to increase.

Stable Dividends Screen

Great stock. Good dividend.

Up and up with great dividends.

Revs stumbled in ahead of last year but are well behind 2007 and 2008 and look to be on a decline. 5 year growth lagging well behind also,sales growth taking a sputter and I can't see 1.60% div being attractive at these levels with much better and safer places % wise to put money. Insiders coming out ,expect others will follow. Nice 10 year run,could have a little juice left,as I always turn'em loose to soon,but I call'em as I see 'em ,out'a here $93.44. look'en to get on down the road before the air comes out of prax.

Strengths and Growth Prospects
-Praxair Inc. is the largest industrial gases supplier in the world, supplying primarily atmospheric gases and related services to a multitude of end markets.
-On-site tonnage comes with 10-20 year contracts set in place, which provides a reliable revenue stream
-Praxair serves over 25 different end markets in various regions, with over 50% of their revenues from sources outside the U.S.
-Gross margins holding at 40% over last 10 years
-Return on assets rising over 10 year period from
-Strong backlog and pricing power
-High barriers of entry due to the importance of uniformity and reliability
-Lowering overhead costs to (partially) offset economic slowdown
-Diversified customers (e.g. industrial gases used in energy, electronics, chemicals, metals, manufacturing, healthcare, aerospace and food & beverage)
-Strategic acquisitions boosting earnings
-42 on-site production plants under construction (as of February 2009)
-Operational efficiency caters to consumers’ demands
-Dividend yield of 2% with 5-year dividend growth rate of 26%
-PEG of 1.7 (compared to S&P 500 of 2)
-New projects in South America, China, India and Korea
-Acquired 15 packaged gases distributors in the U.S. and Canada. Scale matters a lot in the industrial gases industry and organic growth is not always the optimal strategy.
-International exposure capable of driving strong growth in the future
-Lion’s share of patents relating to technology for carbon capture and sequestration (CCS)
-Praxair was one of only 12 companies that made the cut to participate in the government's $1.4 billion CCS race.

Weaknesses and Potential Challenges
-Possibly over-valued: P/E and P/B high (even though in line with historical valuation)
-Profitability will struggle as long as economic woes persist
-High debt with a long-term debt/equity ratio

Lots of talk generated about companies that have international positions compared to those that rely solely on the US. I like what this company has done to get a piece of the international market

Just will

prax does more with less

any company that raises their dividend in this economic environment deserves a BIG GREEN thumb.

Follow the leaders, not the laggards. Leader in global growth.