LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 60 industry peers in the Chemicals industry. While LIN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, LIN is valued expensive at the moment.
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.
LIN had positive earnings in 4 of the past 5 years.
Of the past 5 years LIN 4 years had a positive operating cash flow.
1.2 Ratios
LIN's Return On Assets of 7.73% is amongst the best of the industry. LIN outperforms 87.72% of its industry peers.
With an excellent Return On Equity value of 16.29%, LIN belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.98%, LIN belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is in line with the industry average of 6.58%.
The 3 year average ROIC (7.28%) for LIN is below the current ROIC(8.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 16.29% | ||
| ROIC | 8.98% |
ROA(3y)5.86%
ROA(5y)4.61%
ROE(3y)11.55%
ROE(5y)8.92%
ROIC(3y)7.28%
ROIC(5y)5.78%
1.3 Margins
The Profit Margin of LIN (19.33%) is better than 92.98% of its industry peers.
In the last couple of years the Profit Margin of LIN has declined.
The Operating Margin of LIN (25.85%) is better than 98.25% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a better Gross Margin (47.75%) than 70.18% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.85% | ||
| PM (TTM) | 19.33% | ||
| GM | 47.75% |
OM growth 3Y19.64%
OM growth 5Y10.21%
PM growth 3Y27.14%
PM growth 5Y-8.57%
GM growth 3Y2.41%
GM growth 5Y3.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LIN is creating some value.
There is no outstanding debt for LIN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.92 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a Altman-Z score of 3.92. This is amongst the best in the industry. LIN outperforms 87.72% of its industry peers.
The Debt to FCF ratio of LIN is 4.50, which is a neutral value as it means it would take LIN, 4.50 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.50, LIN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.06
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.96 indicates that LIN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, LIN is doing worse than 89.47% of the companies in the same industry.
LIN has a Quick Ratio of 0.96. 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 Quick ratio of 0.81 is on the low side compared to the rest of the industry. LIN is outperformed by 85.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.80%, which is quite good.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.86% yearly.
The Revenue has been growing slightly by 1.77% in the past year.
Measured over the past years, LIN shows a quite strong growth in Revenue. The Revenue has been growing by 17.23% on average per year.
EPS 1Y (TTM)9.8%
EPS 3Y19.92%
EPS 5Y16.86%
EPS Q2Q%8.54%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%2.46%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y9.9%
EPS Next 2Y9.5%
EPS Next 3Y9.76%
EPS Next 5Y8.78%
Revenue Next Year1.38%
Revenue Next 2Y3.1%
Revenue Next 3Y3.94%
Revenue Next 5Y4.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.97, which means the current valuation is very expensive for LIN.
LIN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.47. LIN is around the same levels.
Based on the Price/Forward Earnings ratio of 26.62, the valuation of LIN can be described as expensive.
LIN's Price/Forward Earnings ratio is in line with the industry average.
LIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.97 | ||
| Fwd PE | 26.62 |
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 64.91% of the companies listed in the same industry.
LIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.69 | ||
| EV/EBITDA | 18.58 |
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.
The excellent profitability rating of LIN may justify a higher PE ratio.
PEG (NY)3.03
PEG (5Y)1.78
EPS Next 2Y9.5%
EPS Next 3Y9.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is comparable with the industry average which is at 3.94.
Compared to an average S&P500 Dividend Yield of 2.28, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 12.74%!
Dividend Growth(5Y)12.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.92%
EPS Next 2Y9.5%
EPS Next 3Y9.76%
LINDE PLC
FRA:LIN (2/4/2025, 7:00:00 PM)
438.8
+1.2 (+0.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap208.94B
Analysts75.76
Price Target484.01 (10.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend5.09
Dividend Growth(5Y)12.74%
DP40.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.22%
Max EPS beat(2)0.75%
EPS beat(4)4
Avg EPS beat(4)0.96%
Min EPS beat(4)0.22%
Max EPS beat(4)1.85%
EPS beat(8)8
Avg EPS beat(8)2.71%
EPS beat(12)12
Avg EPS beat(12)3.09%
EPS beat(16)16
Avg EPS beat(16)3.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.88%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)1.78%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)5
Avg Revenue beat(12)-1.26%
Revenue beat(16)9
Avg Revenue beat(16)-0.5%
PT rev (1m)-1.39%
PT rev (3m)4.77%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.97 | ||
| Fwd PE | 26.62 | ||
| P/S | 6.54 | ||
| P/FCF | 43.69 | ||
| P/OCF | 23.12 | ||
| P/B | 5.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.58 |
EPS(TTM)14.64
EY3.34%
EPS(NY)16.48
Fwd EY3.76%
FCF(TTM)10.04
FCFY2.29%
OCF(TTM)18.98
OCFY4.33%
SpS67.11
BVpS79.6
TBVpS-0.1
PEG (NY)3.03
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 16.29% | ||
| ROCE | 12.46% | ||
| ROIC | 8.98% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 23.42% | ||
| OM | 25.85% | ||
| PM (TTM) | 19.33% | ||
| GM | 47.75% | ||
| FCFM | 14.97% |
ROA(3y)5.86%
ROA(5y)4.61%
ROE(3y)11.55%
ROE(5y)8.92%
ROIC(3y)7.28%
ROIC(5y)5.78%
ROICexc(3y)7.78%
ROICexc(5y)6.15%
ROICexgc(3y)20%
ROICexgc(5y)15.64%
ROCE(3y)10.15%
ROCE(5y)8.02%
ROICexcg growth 3Y32.99%
ROICexcg growth 5Y36.61%
ROICexc growth 3Y32.87%
ROICexc growth 5Y33.75%
OM growth 3Y19.64%
OM growth 5Y10.21%
PM growth 3Y27.14%
PM growth 5Y-8.57%
GM growth 3Y2.41%
GM growth 5Y3.59%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 115.25% | ||
| Cap/Sales | 13.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.62% | ||
| Profit Quality | 77.44% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.92 |
F-Score7
WACC8.47%
ROIC/WACC1.06
Cap/Depr(3y)80.43%
Cap/Depr(5y)78.71%
Cap/Sales(3y)10.35%
Cap/Sales(5y)11.32%
Profit Quality(3y)133.26%
Profit Quality(5y)134.11%
High Growth Momentum
Growth
EPS 1Y (TTM)9.8%
EPS 3Y19.92%
EPS 5Y16.86%
EPS Q2Q%8.54%
EPS Next Y9.9%
EPS Next 2Y9.5%
EPS Next 3Y9.76%
EPS Next 5Y8.78%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%2.46%
Revenue Next Year1.38%
Revenue Next 2Y3.1%
Revenue Next 3Y3.94%
Revenue Next 5Y4.69%
EBIT growth 1Y9.89%
EBIT growth 3Y27.35%
EBIT growth 5Y29.2%
EBIT Next Year44.71%
EBIT Next 3Y17.98%
EBIT Next 5Y12.96%
FCF growth 1Y-28.63%
FCF growth 3Y11.05%
FCF growth 5Y24.85%
OCF growth 1Y-6.61%
OCF growth 3Y7.79%
OCF growth 5Y20.24%