LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
LIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. LIN scores excellent on profitability, but there are some minor concerns on its financial health. LIN is quite expensive at the moment. 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.
LIN had positive earnings in each of the past 5 years.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.99%, LIN belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
The Return On Equity of LIN (17.38%) is better than 89.55% of its industry peers.
LIN's Return On Invested Capital of 9.45% is amongst the best of the industry. LIN outperforms 80.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LIN is above the industry average of 6.51%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROIC | 9.45% |
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
Looking at the Profit Margin, with a value of 20.02%, LIN belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has grown nicely.
Looking at the Operating Margin, with a value of 27.03%, LIN belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
LIN's Operating Margin has improved in the last couple of years.
LIN has a Gross Margin of 48.26%. This is in the better half of the industry: LIN outperforms 71.64% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% |
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
LIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LIN has less shares outstanding than it did 1 year ago.
LIN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a better Altman-Z score (3.90) than 80.60% of its industry peers.
LIN has a debt to FCF ratio of 4.87. This is a neutral value as LIN would need 4.87 years to pay back of all of its debts.
LIN's Debt to FCF ratio of 4.87 is fine compared to the rest of the industry. LIN outperforms 73.13% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that LIN is somewhat dependend on debt financing.
The Debt to Equity ratio of LIN (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.11
WACC8.49%
2.3 Liquidity
LIN has a Current Ratio of 0.94. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.94, LIN is not doing good in the industry: 85.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
LIN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. LIN is outperformed by 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.05% over the past year.
Measured over the past years, LIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.11% on average per year.
The Revenue has been growing slightly by 0.78% in the past year.
LIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
3.2 Future
The Earnings Per Share is expected to grow by 7.63% on average over the next years.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.66, LIN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LIN.
LIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.74, LIN can be considered very expensive at the moment.
LIN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LIN is more expensive than 62.69% of the companies in the same industry.
LIN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.74 |
4.2 Price Multiples
LIN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LIN is more expensive than 65.67% of the companies 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 | 44.65 | ||
| EV/EBITDA | 18.36 |
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)4.36
PEG (5Y)1.84
EPS Next 2Y8.02%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 3.08.
With a Dividend Yield of 1.29, LIN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
40.75% of the earnings are spent on dividend by LIN. This is a bit on the high side, but may be sustainable.
LIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.75%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
FRA:LIN (6/30/2025, 7:00:00 PM)
398
+1.6 (+0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap187.35B
Analysts76.25
Price Target445.18 (11.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend4.75
Dividend Growth(5Y)9.7%
DP40.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.13%
Min EPS beat(2)-0.37%
Max EPS beat(2)0.12%
EPS beat(4)3
Avg EPS beat(4)0.18%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.75%
EPS beat(8)7
Avg EPS beat(8)0.74%
EPS beat(12)11
Avg EPS beat(12)2.47%
EPS beat(16)15
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)3
Avg Revenue beat(12)-2.13%
Revenue beat(16)7
Avg Revenue beat(16)-1.05%
PT rev (1m)-0.91%
PT rev (3m)-8.4%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.74 | ||
| P/S | 6.64 | ||
| P/FCF | 44.65 | ||
| P/OCF | 22.77 | ||
| P/B | 5.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.36 |
EPS(TTM)13.42
EY3.37%
EPS(NY)15.46
Fwd EY3.89%
FCF(TTM)8.91
FCFY2.24%
OCF(TTM)17.48
OCFY4.39%
SpS59.93
BVpS69.03
TBVpS-0.07
PEG (NY)4.36
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROCE | 13.08% | ||
| ROIC | 9.45% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 23.42% | ||
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% | ||
| FCFM | 14.87% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.64%
ROIC(5y)7.15%
ROICexc(3y)9.31%
ROICexc(5y)7.64%
ROICexgc(3y)23.08%
ROICexgc(5y)19.1%
ROCE(3y)11.99%
ROCE(5y)9.81%
ROICexcg growth 3Y14.81%
ROICexcg growth 5Y23.95%
ROICexc growth 3Y18.89%
ROICexc growth 5Y24.77%
OM growth 3Y15.4%
OM growth 5Y17.98%
PM growth 3Y16.98%
PM growth 5Y19.7%
GM growth 3Y3.75%
GM growth 5Y3.21%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 126.14% | ||
| Cap/Sales | 14.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | 74.29% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.9 |
F-Score7
WACC8.49%
ROIC/WACC1.11
Cap/Depr(3y)97.89%
Cap/Depr(5y)86.75%
Cap/Sales(3y)11.55%
Cap/Sales(5y)11.43%
Profit Quality(3y)100.43%
Profit Quality(5y)127.18%
High Growth Momentum
Growth
EPS 1Y (TTM)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
EBIT growth 1Y8.72%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year39.36%
EBIT Next 3Y16.68%
EBIT Next 5Y12.13%
FCF growth 1Y-9.37%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y9.78%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%