LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LIN. LIN was compared to 61 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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.
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 Return On Assets of 8.19%. This is amongst the best in the industry. LIN outperforms 88.89% of its industry peers.
The Return On Equity of LIN (17.23%) is better than 93.65% of its industry peers.
With an excellent Return On Invested Capital value of 9.68%, LIN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIN is in line with the industry average of 6.72%.
The 3 year average ROIC (8.66%) for LIN is below the current ROIC(9.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.23% | ||
| ROIC | 9.68% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.66%
ROIC(5y)7.15%
1.3 Margins
LIN has a Profit Margin of 19.89%. This is amongst the best in the industry. LIN outperforms 93.65% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
LIN has a Operating Margin of 26.60%. This is amongst the best in the industry. LIN outperforms 98.41% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN's Gross Margin of 48.06% is fine compared to the rest of the industry. LIN outperforms 74.60% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.6% | ||
| PM (TTM) | 19.89% | ||
| GM | 48.06% |
OM growth 3Y15.55%
OM growth 5Y18.08%
PM growth 3Y16.98%
PM growth 5Y19.7%
GM growth 3Y3.75%
GM growth 5Y3.21%
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.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
The number of shares outstanding for LIN has been reduced compared to 5 years ago.
The debt/assets ratio for LIN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.12 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a better Altman-Z score (4.12) than 88.89% of its industry peers.
The Debt to FCF ratio of LIN is 4.39, which is a neutral value as it means it would take LIN, 4.39 years of fcf income to pay off all of its debts.
LIN has a better Debt to FCF ratio (4.39) than 79.37% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: LIN outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.09
WACC8.84%
2.3 Liquidity
LIN has a Current Ratio of 0.89. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LIN (0.89) is worse than 80.95% of its industry peers.
A Quick Ratio of 0.76 indicates that LIN may have some problems paying its short term obligations.
LIN has a Quick ratio of 0.76. This is in the lower half of the industry: LIN underperforms 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.15%, which is quite good.
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.
LIN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.46%.
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)9.15%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%10.58%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
3.2 Future
LIN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y7.39%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
EPS Next 5Y7.98%
Revenue Next Year1.76%
Revenue Next 2Y3.68%
Revenue Next 3Y4.12%
Revenue Next 5Y5.11%
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 30.12, LIN can be considered very expensive at the moment.
LIN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. LIN is around the same levels.
With a Price/Forward Earnings ratio of 28.06, LIN can be considered very expensive at the moment.
LIN's Price/Forward Earnings is on the same level as the industry average.
LIN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LIN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.86 | ||
| EV/EBITDA | 18.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LIN may justify a higher PE ratio.
PEG (NY)4.08
PEG (5Y)1.87
EPS Next 2Y8.65%
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.
Compared to an average industry Dividend Yield of 2.89, LIN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
On average, the dividend of LIN grows each year by 9.64%, which is quite nice.
Dividend Growth(5Y)9.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
40.44% 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.
DP40.44%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
FRA:LIN (3/7/2025, 7:00:00 PM)
430.4
-3.4 (-0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.92%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap203.54B
Analysts76.97
Price Target486.02 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.1
Dividend Growth(5Y)9.64%
DP40.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.17%
Min EPS beat(2)0.12%
Max EPS beat(2)0.22%
EPS beat(4)4
Avg EPS beat(4)0.52%
Min EPS beat(4)0.12%
Max EPS beat(4)1.02%
EPS beat(8)8
Avg EPS beat(8)1.8%
EPS beat(12)12
Avg EPS beat(12)2.88%
EPS beat(16)16
Avg EPS beat(16)3.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.87%
Revenue beat(16)8
Avg Revenue beat(16)-0.78%
PT rev (1m)0.42%
PT rev (3m)0.39%
EPS NQ rev (1m)-1.83%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)-2.05%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)-2.89%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 28.06 | ||
| P/S | 6.7 | ||
| P/FCF | 44.86 | ||
| P/OCF | 23.45 | ||
| P/B | 5.8 | ||
| P/tB | 267.86 | ||
| EV/EBITDA | 18.59 |
EPS(TTM)14.29
EY3.32%
EPS(NY)15.34
Fwd EY3.56%
FCF(TTM)9.59
FCFY2.23%
OCF(TTM)18.35
OCFY4.26%
SpS64.28
BVpS74.19
TBVpS1.61
PEG (NY)4.08
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.23% | ||
| ROCE | 13.38% | ||
| ROIC | 9.68% | ||
| ROICexc | 10.4% | ||
| ROICexgc | 24.39% | ||
| OM | 26.6% | ||
| PM (TTM) | 19.89% | ||
| GM | 48.06% | ||
| FCFM | 14.93% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.66%
ROIC(5y)7.15%
ROICexc(3y)9.32%
ROICexc(5y)7.64%
ROICexgc(3y)23.11%
ROICexgc(5y)19.12%
ROCE(3y)12%
ROCE(5y)9.82%
ROICexcg growth 3Y14.97%
ROICexcg growth 5Y24.05%
ROICexc growth 3Y19.06%
ROICexc growth 5Y24.87%
OM growth 3Y15.55%
OM growth 5Y18.08%
PM growth 3Y16.98%
PM growth 5Y19.7%
GM growth 3Y3.75%
GM growth 5Y3.21%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 118.97% | ||
| Cap/Sales | 13.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 75.03% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.12 |
F-Score8
WACC8.84%
ROIC/WACC1.09
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)9.15%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%10.58%
EPS Next Y7.39%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
EPS Next 5Y7.98%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
Revenue Next Year1.76%
Revenue Next 2Y3.68%
Revenue Next 3Y4.12%
Revenue Next 5Y5.11%
EBIT growth 1Y8.88%
EBIT growth 3Y18.26%
EBIT growth 5Y21.83%
EBIT Next Year43.02%
EBIT Next 3Y18.28%
EBIT Next 5Y11.51%
FCF growth 1Y-10.73%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y1.27%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%