In this article we will dive into LINDE PLC (NASDAQ:LIN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LINDE PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Some of the quality metrics of NASDAQ:LIN highlighted
Over the past 5 years, LINDE PLC has experienced impressive revenue growth, with 17.23% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
The ROIC excluding cash and goodwill of LINDE PLC stands at 23.49%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
LINDE PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.51, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
With a robust Profit Quality (5-year) ratio of 134.0%, LINDE PLC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
The 5-year EBIT growth of LINDE PLC has been remarkable, with 29.04% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
LINDE PLC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
Fundamental Analysis Observations
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 85 industry peers in the Chemicals industry. LIN has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, LIN is valued expensive at the moment.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.