LINDE PLC (LIN) Stock Fundamental Analysis
USA - NASDAQ:LIN - IE000S9YS762 - Common Stock
418.3 USD
-11.61 (-2.7%)
419.61 USD
+1.31 (+0.31%)
Overall LIN gets a fundamental rating of 6 out of 10. We evaluated LIN against 82 industry peers in the Chemicals industry. LIN scores excellent on profitability, 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.
LIN had a positive operating cash flow in the past year.
LIN had positive earnings in each of the past 5 years.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.80%, LIN belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
LIN has a better Return On Equity (17.43%) than 85.37% of its industry peers.
With a decent Return On Invested Capital value of 9.18%, LIN is doing good in the industry, outperforming 78.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIN is above the industry average of 6.28%.
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
LIN has a Profit Margin of 20.20%. This is amongst the best in the industry. LIN outperforms 100.00% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
LIN has a better Operating Margin (27.35%) than 93.90% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.45%, LIN belongs to the top of the industry, outperforming 93.90% 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 | 27.35% | ||
| 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.
Compared to 1 year ago, LIN has less shares outstanding
LIN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LIN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a Altman-Z score of 3.43. This is amongst the best in the industry. LIN outperforms 82.93% 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's Debt to FCF ratio of 5.11 is amongst the best of the industry. LIN outperforms 81.71% of its industry peers.
LIN has a Debt/Equity ratio of 0.64. This is a neutral value indicating 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 | 3.43 |
ROIC/WACC1.07
WACC8.6%
2.3 Liquidity
LIN has a Current 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.
Looking at the Current ratio, with a value of 0.93, LIN is doing worse than 92.68% 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.
The Quick ratio of LIN (0.78) is worse than 84.15% 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 | 0.93 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.20% 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.
LIN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.46%.
The Revenue has been growing slightly by 3.18% on average over the past years.
EPS 1Y (TTM)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
3.2 Future
Based on estimates for the next years, LIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y7.11%
EPS Next 2Y8.26%
EPS Next 3Y8.84%
EPS Next 5Y8.51%
Revenue Next Year2.08%
Revenue Next 2Y3.8%
Revenue Next 3Y4.47%
Revenue Next 5Y4.83%
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 25.79 indicates a quite expensive valuation of LIN.
LIN's Price/Earnings ratio is in line with the industry average.
LIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
LIN is valuated rather expensively with a Price/Forward Earnings ratio of 23.01.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.01 |
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 68.29% 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 | 38.69 | ||
| EV/EBITDA | 16.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)1.6
EPS Next 2Y8.26%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is comparable with the industry average which is at 4.00.
With a Dividend Yield of 1.40, LIN pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
40.71% of the earnings are spent on dividend by LIN. 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 2Y8.26%
EPS Next 3Y8.84%
418.3
-11.61 (-2.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change0.19%
Ins Owners0.21%
Ins Owner Change-3.34%
Market Cap196.15B
Revenue(TTM)33.01B
Net Income(TTM)6.71B
Analysts78.67
Price Target523.8 (25.22%)
Short Float %1.15%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)0.67%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.01 | ||
| P/S | 5.9 | ||
| P/FCF | 38.69 | ||
| P/OCF | 19.79 | ||
| P/B | 5.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.57 |
EPS(TTM)16.22
EY3.88%
EPS(NY)18.18
Fwd EY4.35%
FCF(TTM)10.81
FCFY2.58%
OCF(TTM)21.14
OCFY5.05%
SpS70.9
BVpS82.14
TBVpS-2.94
PEG (NY)3.63
PEG (5Y)1.6
Graham Number173.14
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%
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-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 | 3.43 |
F-Score5
WACC8.6%
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)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
EPS Next Y7.11%
EPS Next 2Y8.26%
EPS Next 3Y8.84%
EPS Next 5Y8.51%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
Revenue Next Year2.08%
Revenue Next 2Y3.8%
Revenue Next 3Y4.47%
Revenue Next 5Y4.83%
EBIT growth 1Y8.79%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.45%
EBIT Next 3Y16.76%
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%
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 7.11% 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 40.71%.