News Image

Should you consider LINDE PLC (NASDAQ:LIN) for quality investing?

By Mill Chart

Last update: Aug 26, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LINDE PLC (NASDAQ:LIN) is suited for quality investing. Investors should of course do their own research, but we spotted LINDE PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


Quality stocks image

Highlighting Notable Quality Metrics of NASDAQ:LIN.

  • LINDE PLC has demonstrated significant revenue growth over the past 5 years, with a 17.23% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of LINDE PLC stands at 23.27%, 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 4.44, 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.
  • LINDE PLC exhibits impressive Profit Quality (5-year) with a 134.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • LINDE PLC has consistently achieved strong EBIT growth over the past 5 years, with a 29.2% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, LINDE PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 84 industry peers in the Chemicals industry. LIN has an excellent profitability rating, but there are some minor concerns on its financial health. LIN is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of LIN for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

Back