Research Report for ARG as of 6/23/11 - Chaikin Power Tools

Page 1

AIRGAS INC (ARG)

Price: $68.38

Industry: Chemicals Chaikin Power Gauge Report | Generated: Thu Jun 23 13:39 EDT 2011 ARG AIRGAS INC

$68.38

Power Gauge Rating

ARG - Bullish TM

The Chaikin Power Gauge Rating for ARG is bullish due to very positive expert opinions. The rating also reflects poor financial metrics and bearish price/volume activity.

Financial Metrics

Expert opinions about ARG are very positive which is evidenced by analysts revising earnings estimates upward and insiders purchasing stock.

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Bearish ARG AIRGAS INC

June 15, 2011

TM

Chaikin Sentiment Gauge for ARG is bearish. There is currently a significant negative sentiment within news stories concerning ARG.

News Sentiment :Negative

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Bearish

LT Debt/Equity Ratio

ARG's financial metrics are poor. The company is carrying too much long term debt and may be overvalued.

Price to Book Value

The rank is based on a high long term debt to equity ratio, high price to book value ratio, high return on equity and high price to sales ratio.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

TTM

Current Ratio

1.99

Price/Book

3.32

Return on Invest

7.9%

LT Debt/Equity

1.06

Price/Sales

1.26

Return on Equity

15.1%

Earnings Performance

Earnings Performance Rating

Neutral

Earnings Growth

ARG's earnings performance has been neutral. The company has a stable 5 year earnings trend and is priced relatively high compared to next year's projected EPS.

Earnings Surprise

Earnings Trend

The rank is based on a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

03/07

03/08

03/09

03/10

03/11

3,205.05

4,017.02

4,349.46

3,864.00

4,251.47

13.27%

25.33%

8.28%

-11.16%

10.03%

$1.98

$2.74

$3.19

$2.39

$2.99

22.98%

38.38%

16.42%

-25.08%

25.10%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.78

$0.96

+0.18

Quarterly EPS Yearly EPS Factor

$2.99

$3.88

+0.89

Actual EPS Growth

Est EPS Growth

Change

9.15%

14.28%

+5.13

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.85

$0.88

$0.03

1 Qtr Ago

$0.79

$0.80

$0.01

3.53

03/08

$0.83

$0.88

$0.77

$0.69

$3.17

1.27

03/09

$0.67

$0.67

$0.57

$0.48

$2.39

2 Qtr Ago

$0.81

$0.83

3 Qtr Ago

$0.71

$0.83

$0.02

2.47

03/10

$0.78

$0.80

$0.66

$0.76

$3.00

$0.12

16.90

Fiscal Year End Month is March.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bearish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for ARG is bearish. ARG is trading on lower volume than its 90 day average volume and is in a decelerating price trend compared to 4 months ago.

Price Trend

The rank for ARG is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend and a decreasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether ARG is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Volume Activity

Factor

Value

Factor

Value

Factor

52 Week High

71.00

% Change Price - 4 Weeks

0.62%

Average Volume 20 Days

780,279

52 Week Low

60.87

% Change Price - 24 Weeks

7.80%

Average Volume 90 Days

1,232,484

% Change Price - 4 Wks Rel to S&P

3.22%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

6.92%

% Change YTD Rel S&P 500

5.02%

Expert Opinions

Value

73%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about ARG are very positive. Analysts are raising their EPS estimates for ARG and insiders are net buyers of ARG's stock.

Short Interest

Insider Activity

The rank for ARG is based on analysts revising earnings estimates upward, a low short interest ratio, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Chemicals industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.96 0.98 Current

Current FY

3.88

Analyst Recommendations

7 Days Ago % Change 0.96 0.98

0.00% 0.00%

30 Days Ago % Change 3.88

0.00

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

0

0

Curr Yr

0

0

0

0

Next Qtr

0

0

0

0

Next Yr

0

0

0

0

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for ARG

ARG's Competitors in Chemicals Company

Power Gauge

Air Products acquires semiconductor company Jun 15, 2011

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

ARG

9.15%

14.28%

5.87%

1.23

20.47

4,251

DD

4.98%

9.22%

9.82%

1.50

14.30

32,733

DOW

4.03%

7.00%

4.49%

1.77

15.18

53,674

Airgas Issues $250 Million of 2.95% Senior Notes Due 2016 - May 31, 2011

PPG

7.61%

9.00%

6.99%

1.48

14.92

13,423

Airgas buys Pain Enterprises - May 9, 2011

Airgas Acquires Gas and Welding Distributor ABCO, In - May 31, 2011

Airgas 4Q profit rises 56 pct; buyback announced - May 5, 2011

Company Details

Company Profile

AIRGAS INC 259 N. RADNOR-CHESTER ROAD SUITE 100 RADNOR, PA 19087 USA Phone: 6106875253 Fax: 610-225-3271 Website: http://http://www.airgas.com Full Time Employees: 14,000 Sector: Basic Materials

Airgas, Inc., through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also the third-largest U.S. distributor of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than eleven thousand employees work in about nine hundred locations including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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