LINDE PLC (LIN)
IE000S9YS762 - Common Stock
We assign a fundamental rating of 5 out of 10 to LIN. LIN was compared to 84 industry peers in the Chemicals industry. LIN has an excellent profitability rating, but 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.
In the past year LIN had a positive cash flow from operations.
Of the past 5 years LIN 4 years were profitable.
Of the past 5 years LIN 4 years had a positive operating cash flow.
1.2 Ratios
LIN's Return On Assets of 7.73% is amongst the best of the industry. LIN outperforms 88.10% of its industry peers.
LIN has a better Return On Equity (16.29%) than 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.98%, LIN belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
LIN had an Average Return On Invested Capital over the past 3 years of 7.28%. This is in line with the industry average of 6.50%.
The 3 year average ROIC (7.28%) for LIN is below the current ROIC(8.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 16.29% | ||
| ROIC | 8.98% |
ROA(3y)5.86%
ROA(5y)4.61%
ROE(3y)11.55%
ROE(5y)8.92%
ROIC(3y)7.28%
ROIC(5y)5.78%
1.3 Margins
LIN's Profit Margin of 19.33% is amongst the best of the industry. LIN outperforms 96.43% of its industry peers.
In the last couple of years the Profit Margin of LIN has declined.
LIN has a Operating Margin of 25.85%. This is amongst the best in the industry. LIN outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a Gross Margin of 47.75%. This is amongst the best in the industry. LIN outperforms 89.29% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.85% | ||
| PM (TTM) | 19.33% | ||
| GM | 47.75% |
OM growth 3Y19.64%
OM growth 5Y10.21%
PM growth 3Y27.14%
PM growth 5Y-8.57%
GM growth 3Y2.41%
GM growth 5Y3.59%
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.
There is no outstanding debt for LIN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
LIN has an Altman-Z score of 3.89. 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 3.89, LIN belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
LIN has a debt to FCF ratio of 4.50. This is a neutral value as LIN would need 4.50 years to pay back of all of its debts.
LIN has a better Debt to FCF ratio (4.50) than 73.81% of its industry peers.
LIN has a Debt/Equity ratio of 0.54. This is a neutral value indicating LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.08
WACC8.28%
2.3 Liquidity
LIN has a Current Ratio of 0.96. 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 worse Current ratio (0.96) than 92.86% of its industry peers.
A Quick Ratio of 0.81 indicates that LIN may have some problems paying its short term obligations.
The Quick ratio of LIN (0.81) is worse than 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.80% over the past year.
The Earnings Per Share has been growing by 16.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.77% in the past year.
LIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.23% yearly.
EPS 1Y (TTM)9.8%
EPS 3Y19.92%
EPS 5Y16.86%
EPS Q2Q%8.54%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%2.46%
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 9.54% yearly.
The Revenue is expected to grow by 5.40% on average over the next years.
EPS Next Y10.01%
EPS Next 2Y9.81%
EPS Next 3Y9.9%
EPS Next 5Y9.54%
Revenue Next Year1.62%
Revenue Next 2Y3.43%
Revenue Next 3Y4.08%
Revenue Next 5Y5.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LIN is valuated quite expensively with a Price/Earnings ratio of 30.08.
Compared to the rest of the industry, the Price/Earnings ratio of LIN is on the same level as its industry peers.
LIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.56, LIN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. LIN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.08 | ||
| Fwd PE | 26.56 |
4.2 Price Multiples
67.86% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.84 | ||
| EV/EBITDA | 18.45 |
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)3.01
PEG (5Y)1.78
EPS Next 2Y9.81%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 2.95.
With a Dividend Yield of 1.23, LIN pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 12.74%!
LIN has been paying a dividend for at least 10 years, so it has a reliable track record.
LIN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.74%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
LIN pays out 40.92% 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.
DP40.92%
EPS Next 2Y9.81%
EPS Next 3Y9.9%
LINDE PLC
NASDAQ:LIN (11/21/2024, 8:00:02 PM)
After market: 455.07 0 (0%)455.07
+4.93 (+1.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.08 | ||
| Fwd PE | 26.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.01
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 16.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.85% | ||
| PM (TTM) | 19.33% | ||
| GM | 47.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.8%
EPS 3Y19.92%
EPS 5Y
EPS Q2Q%
EPS Next Y10.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y