390.38 USD
+1 (+0.26%)
389.94 USD
-0.44 (-0.11%)
Taking everything into account, LIN scores 6 out of 10 in our fundamental rating. LIN was compared to 82 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.
In the past year LIN had a positive cash flow from operations.
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 8.25%. This is amongst the best in the industry. LIN outperforms 86.59% of its industry peers.
LIN's Return On Equity of 18.37% is amongst the best of the industry. LIN outperforms 86.59% of its industry peers.
LIN's Return On Invested Capital of 9.49% is amongst the best of the industry. LIN outperforms 80.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is above the industry average of 6.05%.
The last Return On Invested Capital (9.49%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| 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
LIN's Profit Margin of 21.17% is amongst the best of the industry. LIN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
LIN has a better Operating Margin (27.52%) than 93.90% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
The Gross Margin of LIN (48.78%) is better than 92.68% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, LIN has less shares outstanding
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
LIN has an Altman-Z score of 3.27. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LIN (3.27) is better than 84.15% of its industry peers.
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 81.71% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that LIN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, LIN perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.11
WACC8.55%
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 92.68% 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 Quick ratio of 0.69. This is amonst the worse of the industry: LIN underperforms 86.59% 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 | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
LIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.20%.
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.
The Revenue has been growing slightly by 1.45% 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)7.2%
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.
The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y6.92%
EPS Next 2Y7.82%
EPS Next 3Y8.48%
EPS Next 5Y8.71%
Revenue Next Year2.18%
Revenue Next 2Y3.6%
Revenue Next 3Y4.2%
Revenue Next 5Y5.13%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LIN is valuated rather expensively with a Price/Earnings ratio of 24.07.
The rest of the industry has a similar Price/Earnings ratio as LIN.
The average S&P500 Price/Earnings ratio is at 26.28. LIN is around the same levels.
With a Price/Forward Earnings ratio of 21.65, LIN is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as LIN.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, LIN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
LIN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LIN is more expensive than 64.63% of the companies in the same industry.
LIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.91 | ||
| EV/EBITDA | 15.35 |
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)3.48
PEG (5Y)1.49
EPS Next 2Y7.82%
EPS Next 3Y8.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.98, LIN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.31, LIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
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
39.08% of the earnings are spent on dividend by LIN. This is a low number and sustainable payout ratio.
LIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.08%
EPS Next 2Y7.82%
EPS Next 3Y8.48%
390.38
+1 (+0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.56%
Inst Owner Change0.72%
Ins Owners0.07%
Ins Owner Change-2.87%
Market Cap182.29B
Revenue(TTM)33.50B
Net Income(TTM)7.09B
Analysts80.67
Price Target514.13 (31.7%)
Short Float %1.42%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)-1.85%
PT rev (3m)-1.1%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 21.65 | ||
| P/S | 5.44 | ||
| P/FCF | 35.91 | ||
| P/OCF | 18 | ||
| P/B | 4.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.35 |
EPS(TTM)16.22
EY4.15%
EPS(NY)18.03
Fwd EY4.62%
FCF(TTM)10.87
FCFY2.78%
OCF(TTM)21.69
OCFY5.56%
SpS71.75
BVpS82.7
TBVpS-2.45
PEG (NY)3.48
PEG (5Y)1.49
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 | 3.27 |
F-Score6
WACC8.55%
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 Y6.92%
EPS Next 2Y7.82%
EPS Next 3Y8.48%
EPS Next 5Y8.71%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
Revenue Next Year2.18%
Revenue Next 2Y3.6%
Revenue Next 3Y4.2%
Revenue Next 5Y5.13%
EBIT growth 1Y8%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.51%
EBIT Next 3Y16.66%
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 2 / 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 6.92% 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%.