Morningstar Rating

Stock Research and Analysis

by David Silver, CFA, CPA

Bulls Say

The industrial gas industry has consolidated significantly since the late 1990s. This more favorable industry dynamic should reduce the intensity of rivalry and limit overcapacity.
Praxair is currently the market leader in North America and it also dominates South America with an estimated 60%-65% share of the Brazilian industrial gas market.
Steel mill customers are utilizing increased natural gas injection in their blast furnaces in lieu of coal, which boosts volumes since natural gas in the blast furnace requires about 25% more oxygen than coal. Read more 

Bears Say

Increasing competition in China and India may represent obstacles for Praxair's growth because success is contingent on replicating its U.S.-type operations overseas.
The construction period for large-scale on-site projects has increased over the past decade by at least a yea. This has the potential to put a greater strain on cash flows, and result in lower project returns.
The new Air Products CEO has pledged to make his company the "most profitable" in the industry. This creates uncertainty for Praxair's competitive position. Read more 

Management

CEO Stephen F. Angel became CEO in 2007. Before that, he served as executive vice president for Praxair's businesses in North America, Europe, and Asia. Beginning his tenure in 2001, Angel played a large role in Praxair's most recent growth. Before   Read more 

Profile

Praxair is the largest industrial gas supplier in North America and South America and among the largest globally. The company has a growing presence in Asia and a well-established   Read more 

4 Industrial-Gas Suppliers With Potential 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.