LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
LIN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 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
In the past year LIN was profitable.
LIN had a positive operating cash flow in the past year.
LIN had positive earnings in each of the past 5 years.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LIN (8.19%) is better than 83.61% of its industry peers.
LIN has a better Return On Equity (17.23%) than 88.52% of its industry peers.
LIN has a Return On Invested Capital of 9.68%. This is amongst the best in the industry. LIN outperforms 85.25% 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 6.81%.
The last Return On Invested Capital (9.68%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| 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)8.64%
ROIC(5y)7.15%
1.3 Margins
The Profit Margin of LIN (19.89%) is better than 91.80% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
LIN's Operating Margin of 26.60% is amongst the best of the industry. LIN outperforms 96.72% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a better Gross Margin (48.06%) than 72.13% 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 3Y15.4%
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LIN is creating some value.
Compared to 1 year ago, LIN has less shares outstanding
Compared to 5 years ago, LIN has less shares outstanding
LIN has a worse debt/assets ratio than last year.
2.2 Solvency
LIN has an Altman-Z score of 4.02. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
LIN's Altman-Z score of 4.02 is amongst the best of the industry. LIN outperforms 90.16% of its industry peers.
LIN has a debt to FCF ratio of 4.39. This is a neutral value as LIN would need 4.39 years to pay back of all of its debts.
LIN has a better Debt to FCF ratio (4.39) than 80.33% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that LIN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, LIN perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.12
WACC8.61%
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.
With a Current ratio value of 0.89, LIN is not doing good in the industry: 83.61% of the companies in the same industry are doing better.
LIN has a Quick 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.
With a Quick ratio value of 0.76, LIN is not doing good in the industry: 81.97% of the companies in the same industry are doing better.
LIN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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%.
The Revenue has been growing slightly by 3.18% on average over the past years.
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
Based on estimates for the next years, LIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.29% on average per year.
The Revenue is expected to grow by 5.05% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y8.37%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue Next Year1.75%
Revenue Next 2Y3.71%
Revenue Next 3Y4.13%
Revenue Next 5Y5.05%
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
With a Price/Earnings ratio of 29.17, LIN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LIN.
Compared to an average S&P500 Price/Earnings ratio of 28.64, LIN is valued at the same level.
LIN is valuated quite expensively with a Price/Forward Earnings ratio of 27.19.
LIN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, LIN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 27.19 |
4.2 Price Multiples
LIN's Enterprise Value to EBITDA is on the same level as the industry average.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.44 | ||
| EV/EBITDA | 18.04 |
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)4
PEG (5Y)1.81
EPS Next 2Y8.37%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.25, LIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.44% of its income as dividend. 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 2Y8.37%
EPS Next 3Y9.89%
FRA:LIN (4/23/2025, 7:00:00 PM)
396.4
+2.4 (+0.61%)
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 Cap187.46B
Analysts76.97
Price Target470.62 (18.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend4.89
Dividend Growth(5Y)9.7%
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)-3.17%
PT rev (3m)-4.12%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 27.19 | ||
| P/S | 6.48 | ||
| P/FCF | 43.44 | ||
| P/OCF | 22.71 | ||
| P/B | 5.62 | ||
| P/tB | 259.38 | ||
| EV/EBITDA | 18.04 |
EPS(TTM)13.59
EY3.43%
EPS(NY)14.58
Fwd EY3.68%
FCF(TTM)9.13
FCFY2.3%
OCF(TTM)17.46
OCFY4.4%
SpS61.14
BVpS70.56
TBVpS1.53
PEG (NY)4
PEG (5Y)1.81
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)8.64%
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-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 | 19.82 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 75.03% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.02 |
F-Score8
WACC8.61%
ROIC/WACC1.12
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 Y7.3%
EPS Next 2Y8.37%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
Revenue Next Year1.75%
Revenue Next 2Y3.71%
Revenue Next 3Y4.13%
Revenue Next 5Y5.05%
EBIT growth 1Y8.88%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.6%
EBIT Next 3Y16.93%
EBIT Next 5Y12.71%
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%