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Chart Industries, Inc. GTLS recently announced that it has entered into a collaboration with Cryomotive GmbH to develop the latter’s cryogenic storage and refueling technology.
Notably, Chart Industries’ shares moved down 2.8% to eventually close the trading session at $147.24, yesterday.
Cryomotive, a renowned green-tech mobility company in Germany, is engaged in developing a disruptive clean hydrogen storage and refueling technology platform for decarbonizing various sectors including industry, energy and mobility. The company’s patented CcH2 CRYOGAS technology is designed to decarbonize commercial vehicles with range and fueling times targeted to be kept similar to that of their diesel powered counterparts.
Inside the Headlines
The partnership includes Chart Industries’ minority investment in Cryomotive for €6.5 million and a commercial agreement. Notably, the partnership will allow Cryomotive to utilize its patented technology together with Chart Industries, supported by the latter’s in-depth knowledge in refueling and hydrogen station market. With Cryomotive’s solid hydrogen commercial relationships with vehicle manufacturers in Germany, China and Japan, Chart Industries is likely to benefit from increased commercial opportunities for its hydrogen equipment.
It’s worth noting here that the partnership will help Chart Industries to expand its hydrogen addressable market by $100 million in the next five years.
Other Growth Enhancing Actions
The partnership is in sync with Chart Industries’ focus on investing in businesses to gain access to new customers, regions and product lines.
In late March 2021, Chart Industries acquired a 5% stake in Transform Materials, a chemical technology company, for $25 million. The investment will enable it to expand its presence and prospects in the clean-energy markets, particularly hydrogen.
Also, in December 2020, it completed the acquisition of Sustainable Energy Solutions, Inc. In addition, in November, the company acquired Worthington Industries, Inc.’s WOR cryogenic trailer and hydrogen trailer business in Theodore, AL.
Zacks Rank, Price Performance and Earnings Trend
Chart Industries, with a market capitalization of $5.4 billion, carries a Zacks Rank #3 (Hold). The company is poised to gain from solid product offerings, higher orders, planned investments and cost-saving measures. However, high debt level remains concerning.
In the past three months, its shares have gained 5.6% compared with the industry’s growth of 11.8%.
The Zacks Consensus Estimate for its 2021 earnings has improved 4.6% to $3.90 in the past 30 days on the back of three upward revisions against none downward. Also, estimates for 2022 increased 1% to $5.19 on five upward revisions versus one downward.
Stocks to Consider
A couple of better-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT and Parker-Hannifin Corporation PH, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial delivered an earnings surprise of 30.33%, on average, in the trailing four quarters.
Parker-Hannifin delivered an earnings surprise of 37.36%, on average, in the trailing four quarters.
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Worthington Industries, Inc. (WOR) : Free Stock Analysis Report
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Chart Industries, Inc. (GTLS) : Free Stock Analysis Report
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