399.57 USD
-4.16 (-1.03%)
401 USD
+1.43 (+0.36%)
Taking everything into account, LIN scores 6 out of 10 in our fundamental rating. LIN was compared to 81 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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
LIN had positive earnings in the past year.
LIN had a positive operating cash flow in the past year.
In the past 5 years LIN has always been profitable.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
LIN has a better Return On Assets (8.25%) than 86.42% of its industry peers.
LIN's Return On Equity of 18.37% is amongst the best of the industry. LIN outperforms 86.42% of its industry peers.
LIN has a better Return On Invested Capital (9.49%) than 80.25% 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 6.15%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 18.37% | ||
| ROIC | 9.49% |
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
With an excellent Profit Margin value of 21.17%, LIN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has grown nicely.
With an excellent Operating Margin value of 27.52%, LIN belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
LIN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.78%, LIN belongs to the top of the industry, outperforming 93.83% 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 | 27.52% | ||
| PM (TTM) | 21.17% | ||
| GM | 48.78% |
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.
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 3.35. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
LIN has a Altman-Z score of 3.35. This is amongst the best in the industry. LIN outperforms 83.95% of its industry peers.
The Debt to FCF ratio of LIN is 5.11, which is a neutral value as it means it would take LIN, 5.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LIN (5.11) is better than 81.48% of its industry peers.
LIN has a Debt/Equity ratio of 0.61. This is a neutral value indicating LIN is somewhat dependend on debt financing.
The Debt to Equity ratio of LIN (0.61) is better than 60.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.11
WACC8.57%
2.3 Liquidity
A Current Ratio of 0.82 indicates that LIN may have some problems paying its short term obligations.
LIN has a Current ratio of 0.82. This is amonst the worse of the industry: LIN underperforms 92.59% of its industry peers.
A Quick Ratio of 0.69 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Quick ratio (0.69) than 86.42% of its industry peers.
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 | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.20% over the past year.
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 1.45%.
LIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
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 8.71% yearly.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
EPS Next Y7.07%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
EPS Next 5Y8.71%
Revenue Next Year2.02%
Revenue Next 2Y3.51%
Revenue Next 3Y4.43%
Revenue Next 5Y5.11%
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.
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
A Price/Earnings ratio of 24.63 indicates a rather expensive valuation of LIN.
The rest of the industry has a similar Price/Earnings ratio as LIN.
Compared to an average S&P500 Price/Earnings ratio of 26.46, LIN is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.99, the valuation of LIN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN is on the same level as its industry peers.
LIN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
62.96% 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 | 36.76 | ||
| EV/EBITDA | 15.83 |
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)3.49
PEG (5Y)1.53
EPS Next 2Y8.24%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.88, LIN has a dividend in line with its industry peers.
LIN's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 39.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of LIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.08%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
399.57
-4.16 (-1.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change0.7%
Ins Owners0.21%
Ins Owner Change-2.87%
Market Cap186.58B
Revenue(TTM)33.50B
Net Income(TTM)7.09B
Analysts79.33
Price Target513.64 (28.55%)
Short Float %1.42%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP39.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-0.22%
Max EPS beat(2)0.43%
EPS beat(4)2
Avg EPS beat(4)-0.01%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.43%
EPS beat(8)6
Avg EPS beat(8)0.47%
EPS beat(12)10
Avg EPS beat(12)1.8%
EPS beat(16)14
Avg EPS beat(16)2.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-2.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.27%
PT rev (1m)-1.66%
PT rev (3m)-1.19%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 21.99 | ||
| P/S | 5.57 | ||
| P/FCF | 36.76 | ||
| P/OCF | 18.42 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)16.22
EY4.06%
EPS(NY)18.17
Fwd EY4.55%
FCF(TTM)10.87
FCFY2.72%
OCF(TTM)21.69
OCFY5.43%
SpS71.75
BVpS82.7
TBVpS-2.45
PEG (NY)3.49
PEG (5Y)1.53
Graham Number173.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 18.37% | ||
| ROCE | 13.21% | ||
| ROIC | 9.49% | ||
| ROICexc | 10.1% | ||
| ROICexgc | 23.27% | ||
| OM | 27.52% | ||
| PM (TTM) | 21.17% | ||
| GM | 48.78% | ||
| FCFM | 15.15% |
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%
ROICexgc growth 3Y14.81%
ROICexgc 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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 135.62% | ||
| Cap/Sales | 15.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | 71.56% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.35 |
F-Score6
WACC8.57%
ROIC/WACC1.11
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)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
EPS Next Y7.07%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
EPS Next 5Y8.71%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
Revenue Next Year2.02%
Revenue Next 2Y3.51%
Revenue Next 3Y4.43%
Revenue Next 5Y5.11%
EBIT growth 1Y8%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.14%
EBIT Next 3Y16.76%
EBIT Next 5Y12.7%
FCF growth 1Y-0.49%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y16.79%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%
LINDE PLC / LIN FAQ
What is the fundamental rating for LIN stock?
ChartMill assigns a fundamental rating of 6 / 10 to LIN.
Can you provide the valuation status for LINDE PLC?
ChartMill assigns a valuation rating of 3 / 10 to LINDE PLC (LIN). This can be considered as Overvalued.
How profitable is LINDE PLC (LIN) stock?
LINDE PLC (LIN) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for LIN stock?
The Earnings per Share (EPS) of LINDE PLC (LIN) is expected to grow by 7.07% in the next year.
Can you provide the dividend sustainability for LIN stock?
The dividend rating of LINDE PLC (LIN) is 4 / 10 and the dividend payout ratio is 39.08%.