LINDE PLC (LIN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LIN - IE000S9YS762 - Common Stock
378 EUR
+6.6 (+1.78%)
Taking everything into account, LIN scores 5 out of 10 in our fundamental rating. LIN was compared to 69 industry peers in the Chemicals industry. LIN scores excellent on profitability, but there are some minor concerns on its financial health. LIN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LIN had positive earnings in the past year.
- In the past year LIN had a positive cash flow from operations.
- In the past 5 years LIN has always been profitable.
- LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LIN has a better Return On Assets (8.25%) than 84.06% of its industry peers.
- With an excellent Return On Equity value of 18.37%, LIN belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- The Return On Invested Capital of LIN (9.49%) is better than 79.71% of its industry peers.
- LIN had an Average Return On Invested Capital over the past 3 years of 8.64%. This is in line with the industry average of 6.70%.
- The last Return On Invested Capital (9.49%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 18.37% | ||
| ROIC | 9.49% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.64%
ROIC(5y)7.15%
1.3 Margins
- With an excellent Profit Margin value of 21.17%, LIN belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
- LIN's Profit Margin has improved in the last couple of years.
- LIN's Operating Margin of 27.52% is amongst the best of the industry. LIN outperforms 98.55% of its industry peers.
- LIN's Operating Margin has improved in the last couple of years.
- LIN has a better Gross Margin (48.78%) than 71.01% of its industry peers.
- In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.52% | ||
| PM (TTM) | 21.17% | ||
| GM | 48.78% |
OM growth 3Y15.4%
OM growth 5Y17.98%
PM growth 3Y16.98%
PM growth 5Y19.7%
GM growth 3Y3.75%
GM growth 5Y3.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still creating some value.
- Compared to 1 year ago, LIN has less shares outstanding
- Compared to 5 years ago, LIN has less shares outstanding
- Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.58 indicates that LIN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LIN (3.58) is better than 72.46% of its industry peers.
- LIN has a debt to FCF ratio of 5.11. This is a neutral value as LIN would need 5.11 years to pay back of all of its debts.
- LIN has a Debt to FCF ratio of 5.11. This is in the better half of the industry: LIN outperforms 72.46% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that LIN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, LIN is doing worse than 62.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.11
WACC8.53%
2.3 Liquidity
- LIN has a Current Ratio of 0.82. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
- LIN's Current ratio of 0.82 is on the low side compared to the rest of the industry. LIN is outperformed by 88.41% of its industry peers.
- A Quick Ratio of 0.69 indicates that LIN may have some problems paying its short term obligations.
- LIN has a Quick ratio of 0.69. This is in the lower half of the industry: LIN underperforms 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- LIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.20%.
- LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
- LIN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.45%.
- Measured over the past years, LIN shows a small growth in Revenue. The Revenue has been growing by 3.18% on average per year.
EPS 1Y (TTM)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
3.2 Future
- Based on estimates for the next years, LIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
- LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y6.95%
EPS Next 2Y7.73%
EPS Next 3Y8.37%
EPS Next 5Y9.02%
Revenue Next Year2.13%
Revenue Next 2Y3.58%
Revenue Next 3Y4.16%
Revenue Next 5Y5.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- LIN is valuated quite expensively with a Price/Earnings ratio of 27.27.
- LIN's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (27.30), we can say LIN is valued inline with the index average.
- The Price/Forward Earnings ratio is 24.58, which indicates a rather expensive current valuation of LIN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 62.32% of the companies listed in the same industry.
- LIN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 68.12% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as LIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.71 | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LIN does not grow enough to justify the current Price/Earnings ratio.
- LIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)1.69
EPS Next 2Y7.73%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.36%, LIN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.33, LIN has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, LIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
- The dividend of LIN is nicely growing with an annual growth rate of 9.70%!
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- LIN pays out 39.08% of its income as dividend. This is a sustainable payout ratio.
- The dividend of LIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.08%
EPS Next 2Y7.73%
EPS Next 3Y8.37%
LINDE PLC / LIN.DE FAQ
What is the fundamental rating for LIN stock?
ChartMill assigns a fundamental rating of 5 / 10 to LIN.DE.
What is the valuation status of LINDE PLC (LIN.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to LINDE PLC (LIN.DE). This can be considered as Overvalued.
How profitable is LINDE PLC (LIN.DE) stock?
LINDE PLC (LIN.DE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of LINDE PLC (LIN.DE) stock?
The Price/Earnings (PE) ratio for LINDE PLC (LIN.DE) is 27.27 and the Price/Book (PB) ratio is 5.35.
How sustainable is the dividend of LINDE PLC (LIN.DE) stock?
The dividend rating of LINDE PLC (LIN.DE) is 4 / 10 and the dividend payout ratio is 39.08%.