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Why LINDE PLC (NASDAQ:LIN) qualifies as a quality stock.

By Mill Chart

Last update: Sep 17, 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.


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A Deep Dive into LINDE PLC's Quality Metrics.

  • The 5-year revenue growth of LINDE PLC has been remarkable, with 17.23% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • LINDE PLC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 23.27% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 4.44, LINDE PLC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • LINDE PLC demonstrates consistent Profit Quality over the past 5 years, with a strong 134.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 29.2%, LINDE PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • 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.

What is the full fundamental picture of NASDAQ:LIN telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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.

For an up to date full fundamental analysis you can check the fundamental report of LIN

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

Keep in mind

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.

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