LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
Taking everything into account, LIN scores 6 out of 10 in our fundamental rating. LIN was compared to 84 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.
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 8.19%. This is amongst the best in the industry. LIN outperforms 90.48% of its industry peers.
LIN has a Return On Equity of 17.23%. This is amongst the best in the industry. LIN outperforms 86.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.68%, LIN belongs to the top of the industry, outperforming 83.33% 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 7.01%.
The 3 year average ROIC (8.64%) 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)8.64%
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 97.62% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
The Operating Margin of LIN (26.60%) is better than 94.05% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 48.06%, LIN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Gross Margin of LIN has grown nicely.
| 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
LIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
Compared to 5 years ago, LIN has less shares outstanding
Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.02 indicates that LIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of LIN (4.02) is better than 86.90% 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.
With a decent Debt to FCF ratio value of 4.39, LIN is doing good in the industry, outperforming 79.76% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.51. This is a neutral value indicating LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio of 0.51. This is in the better half of the industry: LIN outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.14
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.89 indicates that LIN may have some problems paying its short term obligations.
LIN's Current ratio of 0.89 is on the low side compared to the rest of the industry. LIN is outperformed by 85.71% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.76, LIN is doing worse than 77.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.15% over the past year.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
Looking at the last year, LIN shows a small growth in Revenue. The Revenue has grown by 0.46% in the last year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.29% yearly.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y7.46%
EPS Next 2Y8.7%
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
The Price/Earnings ratio is 29.15, which means the current valuation is very expensive for LIN.
Compared to the rest of the industry, the Price/Earnings ratio of LIN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (28.29), we can say LIN is valued inline with the index average.
The Price/Forward Earnings ratio is 27.13, which means the current valuation is very expensive for LIN.
LIN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.08. LIN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 27.13 |
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 71.43% of the companies listed 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 | 43.4 | ||
| EV/EBITDA | 18.02 |
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)3.91
PEG (5Y)1.81
EPS Next 2Y8.7%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is comparable with the industry average which is at 4.09.
With a Dividend Yield of 1.39, LIN pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.70%!
LIN has paid a dividend for at least 10 years, which is a reliable track record.
LIN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.7%
Div Incr Years31
Div Non Decr Years31
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.
The dividend of LIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.44%
EPS Next 2Y8.7%
EPS Next 3Y9.89%
452.12
+4.13 (+0.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.92%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change9%
Market Cap213.81B
Analysts76.97
Price Target510.1 (12.82%)
Short Float %1.18%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.44%
Div Incr Years31
Div Non Decr Years31
Ex-Date
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%
PT rev (3m)-0.56%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 27.13 | ||
| P/S | 6.48 | ||
| P/FCF | 43.4 | ||
| P/OCF | 22.69 | ||
| P/B | 5.61 | ||
| P/tB | 259.17 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)15.51
EY3.43%
EPS(NY)16.67
Fwd EY3.69%
FCF(TTM)10.42
FCFY2.3%
OCF(TTM)19.93
OCFY4.41%
SpS69.79
BVpS80.55
TBVpS1.74
PEG (NY)3.91
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
WACC8.49%
ROIC/WACC1.14
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 Y7.46%
EPS Next 2Y8.7%
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%