LINDE PLC (LIN) Stock Fundamental Analysis
USA - NASDAQ:LIN - IE000S9YS762 - Common Stock
476 USD
-3.86 (-0.8%)
476 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LIN. LIN was compared to 83 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
In the past year LIN was profitable.
LIN had a positive operating cash flow in the past year.
Each year in the past 5 years LIN has 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 7.80%. This is amongst the best in the industry. LIN outperforms 86.75% of its industry peers.
Looking at the Return On Equity, with a value of 17.43%, LIN belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
LIN has a Return On Invested Capital of 9.18%. This is in the better half of the industry: LIN outperforms 79.52% of its industry peers.
LIN had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 6.34%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.43% | ||
| ROIC | 9.18% |
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 20.20%, LIN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LIN's Profit Margin has improved in the last couple of years.
The Operating Margin of LIN (27.35%) is better than 97.59% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a Gross Margin of 48.45%. This is amongst the best in the industry. LIN outperforms 92.77% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.35% | ||
| PM (TTM) | 20.2% | ||
| GM | 48.45% |
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.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
LIN has less shares outstanding than it did 5 years ago.
LIN has a worse debt/assets ratio than last year.
2.2 Solvency
LIN has an Altman-Z score of 3.80. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.80, LIN belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
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 amongst the best in the industry. LIN outperforms 80.72% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.07
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.93 indicates that LIN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.93, LIN is doing worse than 91.57% of the companies in the same industry.
LIN has a Quick Ratio of 0.93. 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 has a Quick ratio of 0.78. This is amonst the worse of the industry: LIN underperforms 84.34% of its industry peers.
The current and quick ratio evaluation for LIN is rather negative, while it does have 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 | 0.93 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
LIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.62%.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
The Revenue has been growing slightly by 1.28% 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)7.62%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.23%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%2.76%
3.2 Future
The Earnings Per Share is expected to grow by 8.51% on average over the next years. This is quite good.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y7.1%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue Next Year1.97%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
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 29.84, LIN can be considered very expensive at the moment.
LIN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, LIN is valued at the same level.
The Price/Forward Earnings ratio is 26.20, which means the current valuation is very expensive for LIN.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 60.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LIN to the average of the S&P500 Index (22.88), we can say LIN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 26.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than the industry average as 65.06% of the companies are valued more cheaply.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.03 | ||
| EV/EBITDA | 18.82 |
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)4.2
PEG (5Y)1.85
EPS Next 2Y8.23%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, LIN has a dividend in line with its industry peers.
With a Dividend Yield of 1.24, LIN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.70%!
LIN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.71% 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.
DP40.71%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
476
-3.86 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.55%
Inst Owner Change-3.67%
Ins Owners0.21%
Ins Owner Change-2.83%
Market Cap223.20B
Analysts78.06
Price Target520.31 (9.31%)
Short Float %1.13%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.03%
Min EPS beat(2)-0.37%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)0.1%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.43%
EPS beat(8)7
Avg EPS beat(8)0.58%
EPS beat(12)11
Avg EPS beat(12)2.21%
EPS beat(16)15
Avg EPS beat(16)2.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-1.93%
Revenue beat(12)3
Avg Revenue beat(12)-2.09%
Revenue beat(16)7
Avg Revenue beat(16)-1.15%
PT rev (1m)0.7%
PT rev (3m)2.51%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 26.2 | ||
| P/S | 6.71 | ||
| P/FCF | 44.03 | ||
| P/OCF | 22.52 | ||
| P/B | 5.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.82 |
EPS(TTM)15.95
EY3.35%
EPS(NY)18.17
Fwd EY3.82%
FCF(TTM)10.81
FCFY2.27%
OCF(TTM)21.14
OCFY4.44%
SpS70.9
BVpS82.14
TBVpS-2.94
PEG (NY)4.2
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.43% | ||
| ROCE | 12.74% | ||
| ROIC | 9.18% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 22.18% | ||
| OM | 27.35% | ||
| PM (TTM) | 20.2% | ||
| GM | 48.45% | ||
| FCFM | 15.25% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 130.01% | ||
| Cap/Sales | 14.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 75.5% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.8 |
F-Score5
WACC8.59%
ROIC/WACC1.07
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)7.62%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.23%
EPS Next Y7.1%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%2.76%
Revenue Next Year1.97%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
EBIT growth 1Y8.79%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.27%
EBIT Next 3Y16.75%
EBIT Next 5Y12.92%
FCF growth 1Y-6.18%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y12.78%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%