Chart Industries Inc. (GTLS)- Q4 Update
Multiple unsustainable benefits in addition to payables stretching further
We first highlighted Chart Industries (GTLS) in our December report The Supplier Squeeze: Companies Are at It Again along with ten other companies that were enjoying the cash flow benefit of outsized growth in their accounts payable. After missing EPS targets in 4Q’24 (the fourth miss in a row), the stock dropped 25%. Guidance for 2025 for adjusted EPS of $12-$13 would have the stock at 12x EPS which may look cheap on the surface. However, we noted several items discussed below that helped 2024 results that look unsustainable.