LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 85 industry peers in the Chemicals industry. LIN scores excellent on profitability, but there are some minor concerns on its financial health. LIN is quite expensive at the moment. 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.
In the past 5 years LIN has always been profitable.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.99%, LIN belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
The Return On Equity of LIN (17.38%) is better than 87.06% of its industry peers.
With an excellent Return On Invested Capital value of 9.45%, LIN belongs to the best of the industry, outperforming 81.18% 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 6.84%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROIC | 9.45% |
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
Looking at the Profit Margin, with a value of 20.02%, LIN belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has grown nicely.
LIN has a Operating Margin of 27.03%. This is amongst the best in the industry. LIN outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
With an excellent Gross Margin value of 48.26%, LIN belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
LIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still creating some value.
Compared to 1 year ago, LIN has less shares outstanding
The number of shares outstanding for LIN has been reduced compared to 5 years ago.
The debt/assets ratio for LIN is higher compared to a year ago.
2.2 Solvency
LIN has an Altman-Z score of 3.99. 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 3.99, LIN belongs to the top of the industry, outperforming 87.06% of the companies in the same industry.
The Debt to FCF ratio of LIN is 4.87, which is a neutral value as it means it would take LIN, 4.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.87, LIN is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: LIN outperforms 56.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.1
WACC8.59%
2.3 Liquidity
LIN has a Current Ratio of 0.94. 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 0.94, LIN is doing worse than 89.41% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
The Quick ratio of LIN (0.80) is worse than 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
The Earnings Per Share has been growing by 16.11% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.78% 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)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
3.2 Future
Based on estimates for the next years, LIN will show a small growth in Earnings Per Share. The EPS will grow by 7.63% on average per year.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
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
With a Price/Earnings ratio of 30.27, LIN can be considered very expensive at the moment.
LIN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, LIN is valued at the same level.
With a Price/Forward Earnings ratio of 26.28, LIN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than the industry average as 61.18% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, LIN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.28 |
4.2 Price Multiples
65.88% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
LIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.58 | ||
| EV/EBITDA | 18.85 |
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.
The excellent profitability rating of LIN may justify a higher PE ratio.
PEG (NY)4.45
PEG (5Y)1.88
EPS Next 2Y8.02%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, LIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
LIN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.75% 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.
DP40.75%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
475.58
-1.59 (-0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner Change0.15%
Ins Owners0.21%
Ins Owner Change11.34%
Market Cap223.87B
Analysts76.25
Price Target510.51 (7.34%)
Short Float %1.12%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.13%
Min EPS beat(2)-0.37%
Max EPS beat(2)0.12%
EPS beat(4)3
Avg EPS beat(4)0.18%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.75%
EPS beat(8)7
Avg EPS beat(8)0.74%
EPS beat(12)11
Avg EPS beat(12)2.47%
EPS beat(16)15
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)3
Avg Revenue beat(12)-2.13%
Revenue beat(16)7
Avg Revenue beat(16)-1.05%
PT rev (1m)0.65%
PT rev (3m)0.08%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.28 | ||
| P/S | 6.78 | ||
| P/FCF | 45.58 | ||
| P/OCF | 23.25 | ||
| P/B | 5.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.85 |
EPS(TTM)15.71
EY3.3%
EPS(NY)18.1
Fwd EY3.81%
FCF(TTM)10.43
FCFY2.19%
OCF(TTM)20.46
OCFY4.3%
SpS70.14
BVpS80.8
TBVpS-0.08
PEG (NY)4.45
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROCE | 13.08% | ||
| ROIC | 9.45% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 23.42% | ||
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% | ||
| FCFM | 14.87% |
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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 126.14% | ||
| Cap/Sales | 14.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | 74.29% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.99 |
F-Score7
WACC8.59%
ROIC/WACC1.1
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)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
EBIT growth 1Y8.72%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year39.36%
EBIT Next 3Y16.68%
EBIT Next 5Y12.13%
FCF growth 1Y-9.37%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y9.78%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%