Chart Industries Inc (GTLS, Financial), a leading provider of cryogenic equipment, has experienced a notable stock performance in recent times. With a market capitalization of $6.3 billion, the company's current stock price stands at $149.09. Over the past week, the stock has seen a slight decline of 0.83%. However, looking at a broader timeframe, Chart Industries has gained an impressive 10.48% over the past three months. Despite this growth, the GF Value suggests caution, labeling the stock as a Possible Value Trap, with a current GF Value of $309.54, down from the past GF Value of $314.73. This valuation indicates that investors should think twice before making an investment decision, as the stock might not be as undervalued as it appears.
Introduction to Chart Industries Inc
Chart Industries Inc (GTLS, Financial) operates within the industrial products sector, specializing in cryogenic equipment for various industries, including industrial gas and liquefied natural gas (LNG). The company's portfolio extends to natural gas processing and specialty products for diverse markets such as hydrogen, biofuels, cannabis, and water treatment. The acquisition of Howden in early 2023 marked a significant expansion, roughly doubling Chart Industries' size and broadening its technological and geographic footprint. 
Assessing Profitability
Chart Industries boasts a strong Profitability Rank of 8/10, indicating a robust financial foundation. The company's operating margin stands at 11.68%, outperforming 71.39% of its peers in the industry. Its return on equity (ROE) is 1.76%, surpassing 27.2% of companies, while the return on assets (ROA) at 0.55% is better than 27.35% of companies. The return on invested capital (ROIC) is 4.97%, which is higher than 42.94% of companies. Furthermore, Chart Industries has maintained profitability for 9 out of the past 10 years, a record better than 64.59% of companies. These metrics collectively underscore the company's ability to generate profits and manage its resources effectively. 
Examining Growth Prospects
The company's Growth Rank is an exceptional 10/10, reflecting its impressive expansion trajectory. Chart Industries has achieved a 3-year revenue growth rate per share of 30.40%, outshining 90.2% of companies. Its 5-year revenue growth rate per share is 13.70%, better than 80.3% of companies. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 20.61%, which is superior to 90.41% of companies. The 3-year EPS without NRI growth rate is a remarkable 48.40%, and the 5-year rate is 39.40%, both metrics indicating robust earnings growth well above industry averages. The future EPS growth rate estimate for the next 3 to 5 years is an astounding 77.69%, placing Chart Industries among the top performers. 
Notable Shareholders
Chart Industries' shareholder base includes several prominent investors. Ron Baron (Trades, Portfolio) leads the pack with 1,145,013 shares, representing 2.68% of the company. Ken Fisher (Trades, Portfolio) follows with 591,013 shares, accounting for 1.38%. Mario Gabelli (Trades, Portfolio) holds a stake of 119,720 shares, which translates to 0.28%. The confidence of these seasoned investors further validates the company's market position and growth potential.
Competitive Landscape
When compared to its competitors, Chart Industries holds a strong market position. Flowserve Corp (FLS, Financial) has a market cap of $5.85 billion, Franklin Electric Co Inc (FELE, Financial) is valued at $4.71 billion, and Watts Water Technologies Inc (WTS, Financial) stands at $6.73 billion. Chart Industries' market cap of $6.3 billion places it competitively within this group, reflecting its significant industry presence and potential for continued growth.
Conclusion
In summary, Chart Industries Inc's recent stock performance, despite a slight weekly loss, has been robust over the past three months, with a 10.48% gain. However, the GF Value suggests that investors should be cautious, as the stock may be a Possible Value Trap. The company's profitability and growth metrics are strong, with high ranks and growth rates that outperform a majority of its peers. The presence of notable shareholders like Ron Baron (Trades, Portfolio), Ken Fisher (Trades, Portfolio), and Mario Gabelli (Trades, Portfolio) adds credibility to the company's prospects. Finally, Chart Industries' market cap positions it well among its competitors, indicating a solid standing in the industrial products industry. Investors should weigh these factors carefully when considering Chart Industries as a potential addition to their portfolios.
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.
