Recently Airgas Inc. (ARG) agreed to be acquired by Air Liquide (AIQUF).
The company reported its sales increased 7.8% during the quarter, up 4.6% compared to the same quarter of 2014.
Driven by the dynamism of Healthcare and Electronics and ramp-ups in Large Industries, the group delivered a sustained increase in sales in which it rose by 7.4% on a reported basis, up 4.5% on a comparable basis versus the same quarter of a year before.
About Airgas Inc.
The company is a producer of atmospheric gases, carbon dioxide, dry ice and nitrous oxide, suppliers of safety products, and a U.S. supplier of refrigerants, ammonia products and process chemicals. Its production network and supply agreements, gas supply modes (from cylinders to truckload quantities to on-site pipeline supply) and national footprint make it one of the few fully-integrated industrial gas companies in the U.S.
Through this deal, Airgas will offer new opportunities to its customers by delivering service and innovation and also it will deliver significant value to shareholders.
Last quarter results for Airgas Inc.
The third quarter results demonstrated the resilience of the business during difficult economic times, in which the company reported an increase of 1% for diluted EPS over the same quarter of a year before. Its total sales also grew by 1% over prior the year, while organic sales were flat.
Airgas reported an increase of 15% for year-to-date free cash flow over the prior year.
From the beginning of its fiscal year through October, return on capital was 11.6%, which is down 50 basis points compared to the prior year.
For the full fiscal year 2016, EPS is expected to have an increase of 1% to 3% over prior year EPS.
Competitors
Based on market cap, Airgas' main competitors are Air Products & Chemicals Inc. (RPD) which is trading with P/E ratio of 29.12 and Praxair Inc. (PX) with P/E ratio of 23.52. All are trading above the industry median of 17.60.
Airgas has a positive one-year EPS growth of 2.10%, while its two competitors Air Products and Praxair have EPS decline of 1% and 21.90%.
Last quarter trades and main shareholders
Steven Cohen (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) started new positions in Airgas during the third quarter. Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) sold out their stakes, while Columbia Wanger (Trades, Portfolio), Ron Baron (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Murray Stahl (Trades, Portfolio) reduced their stakes.
This article first appeared on
GuruFocus.