Chart Industries Inc (GTLS, Financial) has experienced a remarkable uptick in its stock price, with a 17.43% gain over the past week and an impressive 17.77% gain over the past three months. The company's market capitalization now stands at $6.31 billion, with the current stock price at $147.68. Despite these gains, the GF Value suggests a valuation of $344.42, significantly higher than the current price, indicating that the stock might be undervalued. However, the GF Valuation remains at "Possible Value Trap, Think Twice," the same as it was three months ago when the GF Value was $294.88. This calls for a cautious approach from investors considering the stock's potential.
Company Overview
Chart Industries Inc, operating within the Industrial Products sector, is a leading provider of cryogenic equipment used across various industries, including industrial gas and liquefied natural gas (LNG). The company's recent acquisition of Howden has nearly doubled its size, marking a significant milestone in its expansion strategy. This strategic move positions Chart Industries to capitalize on the growing demand for energy-efficient solutions and alternative energy sources, such as hydrogen and biofuels. 
Profitability Analysis
Chart Industries boasts a Profitability Rank of 7/10, reflecting its strong performance relative to peers. The company's Operating Margin stands at 10.64%, outperforming 67.07% of 2,964 companies in the industry. However, its ROE is at -1.75%, and ROA at -0.59%, indicating areas for improvement. The ROIC of 3.40% is better than 35.55% of companies in the sector. With nine years of profitability over the past decade, Chart Industries demonstrates a consistent ability to generate profits. 
Growth Prospects
The company's Growth Rank is 5/10, indicating moderate growth. Chart Industries has seen a 3.70% 3-Year Revenue Growth Rate per Share and a 5.30% 5-Year Revenue Growth Rate per Share. More impressively, the 3-Year EPS without NRI Growth Rate is at 39.30%, and the 5-Year EPS without NRI Growth Rate is at 18.40%. Looking ahead, the estimated EPS Growth Rate for the next 3 to 5 years is a robust 98.68%, suggesting strong future growth potential for the company. 
Investor Holdings
Notable investors have taken significant positions in Chart Industries, with Ron Baron (Trades, Portfolio) holding 1,145,013 shares (2.68%), Ken Fisher (Trades, Portfolio) with 590,471 shares (1.38%), and Mario Gabelli (Trades, Portfolio) owning 119,720 shares (0.28%). These holdings reflect the confidence of seasoned investors in the company's future prospects.
Competitive Landscape
When compared to its competitors, Chart Industries holds its own with a market cap of $6.31 billion. Flowserve Corp (FLS, Financial) has a market cap of $5.54 billion, Franklin Electric Co Inc (FELE, Financial) is valued at $4.77 billion, and Watts Water Technologies Inc (WTS, Financial) stands at $6.71 billion. Chart Industries' recent performance and growth prospects position it competitively within the industrial products sector.
Conclusion
In summary, Chart Industries Inc has shown a significant stock price increase in recent months, but the GF Valuation advises caution. The company's profitability and growth metrics are strong, with notable investors maintaining substantial stakes. While it competes effectively in its industry, potential investors should carefully consider the "Possible Value Trap" warning in light of the company's promising growth estimates and current market dynamics.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
