LINDE PLC (LIN)
IE000S9YS762 - Common Stock
We assign a fundamental rating of 5 out of 10 to LIN. LIN was compared to 83 industry peers in the Chemicals industry. While LIN belongs to the best of the industry regarding profitability, 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
In the past year LIN was profitable.
LIN had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 7.73%, LIN belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
The Return On Equity of LIN (16.29%) is better than 83.13% of its industry peers.
LIN's Return On Invested Capital of 8.98% is amongst the best of the industry. LIN outperforms 81.93% of its industry peers.
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 7.24%.
The last Return On Invested Capital (8.98%) for LIN is above the 3 year average (7.28%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 19.33%. This is amongst the best in the industry. LIN outperforms 95.18% of its industry peers.
LIN's Profit Margin has declined in the last couple of years.
LIN has a better Operating Margin (25.85%) than 91.57% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
LIN has a Gross Margin of 47.75%. This is amongst the best in the industry. LIN outperforms 89.16% 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
LIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 3.72. 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 3.72, LIN belongs to the top of the industry, outperforming 84.34% 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.
With a decent Debt to FCF ratio value of 4.50, LIN is doing good in the industry, outperforming 72.29% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.54. This is a neutral value indicating LIN is somewhat dependend on debt financing.
The Debt to Equity ratio of LIN (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.09
WACC8.25%
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.
Looking at the Current ratio, with a value of 0.96, LIN is doing worse than 92.77% of the companies in the same industry.
LIN has a Quick 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's Quick ratio of 0.81 is on the low side compared to the rest of the industry. LIN is outperformed by 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.80%, which is quite good.
Measured over the past years, LIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.86% on average per year.
The Revenue has been growing slightly by 1.77% in the past year.
The Revenue has been growing by 17.23% on average over the past years. This is quite good.
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 9.44% yearly.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y9.9%
EPS Next 2Y9.71%
EPS Next 3Y9.86%
EPS Next 5Y9.44%
Revenue Next Year1.48%
Revenue Next 2Y3.34%
Revenue Next 3Y4.08%
Revenue Next 5Y4.96%
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
Based on the Price/Earnings ratio of 28.04, the valuation of LIN can be described as expensive.
LIN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. LIN is around the same levels.
With a Price/Forward Earnings ratio of 24.81, LIN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 65.06% of the companies in the same industry.
LIN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 24.81 |
4.2 Price Multiples
71.08% 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 | 40.87 | ||
| EV/EBITDA | 17.46 |
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)2.83
PEG (5Y)1.66
EPS Next 2Y9.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, LIN has a dividend in line with its industry peers.
With a Dividend Yield of 1.33, LIN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
40.92% 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.
DP40.92%
EPS Next 2Y9.71%
EPS Next 3Y9.86%
LINDE PLC
NASDAQ:LIN (12/20/2024, 8:22:25 PM)
After market: 424.31 0 (0%)424.31
+4.72 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change0.91%
Ins Owners0.19%
Ins Owner Change-1.47%
Market Cap202.04B
Analysts75.76
Price Target512.56 (20.8%)
Short Float %1.15%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)12.74%
DP40.92%
Div Incr Years31
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.22%
Max EPS beat(2)0.75%
EPS beat(4)4
Avg EPS beat(4)0.96%
Min EPS beat(4)0.22%
Max EPS beat(4)1.85%
EPS beat(8)8
Avg EPS beat(8)2.71%
EPS beat(12)12
Avg EPS beat(12)3.09%
EPS beat(16)16
Avg EPS beat(16)3.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.88%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)1.78%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)5
Avg Revenue beat(12)-1.26%
Revenue beat(16)9
Avg Revenue beat(16)-0.5%
PT rev (1m)1.99%
PT rev (3m)3.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.15%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)4.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-9.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 24.81 | ||
| P/S | 6.12 | ||
| P/FCF | 40.87 | ||
| P/OCF | 21.63 | ||
| P/B | 5.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.46 |
EPS(TTM)15.13
EY3.57%
EPS(NY)17.1
Fwd EY4.03%
FCF(TTM)10.38
FCFY2.45%
OCF(TTM)19.62
OCFY4.62%
SpS69.36
BVpS82.27
TBVpS-0.1
PEG (NY)2.83
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 16.29% | ||
| ROCE | 12.46% | ||
| ROIC | 8.98% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 23.42% | ||
| OM | 25.85% | ||
| PM (TTM) | 19.33% | ||
| GM | 47.75% | ||
| FCFM | 14.97% |
ROA(3y)5.86%
ROA(5y)4.61%
ROE(3y)11.55%
ROE(5y)8.92%
ROIC(3y)7.28%
ROIC(5y)5.78%
ROICexc(3y)7.78%
ROICexc(5y)6.15%
ROICexgc(3y)20%
ROICexgc(5y)15.64%
ROCE(3y)10.15%
ROCE(5y)8.02%
ROICexcg growth 3Y32.99%
ROICexcg growth 5Y36.61%
ROICexc growth 3Y32.87%
ROICexc growth 5Y33.75%
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%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 115.25% | ||
| Cap/Sales | 13.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.62% | ||
| Profit Quality | 77.44% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.72 |
F-Score7
WACC8.25%
ROIC/WACC1.09
Cap/Depr(3y)80.43%
Cap/Depr(5y)78.71%
Cap/Sales(3y)10.35%
Cap/Sales(5y)11.32%
Profit Quality(3y)133.26%
Profit Quality(5y)134.11%
High Growth Momentum
Growth
EPS 1Y (TTM)9.8%
EPS 3Y19.92%
EPS 5Y16.86%
EPS Q2Q%8.54%
EPS Next Y9.9%
EPS Next 2Y9.71%
EPS Next 3Y9.86%
EPS Next 5Y9.44%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%2.46%
Revenue Next Year1.48%
Revenue Next 2Y3.34%
Revenue Next 3Y4.08%
Revenue Next 5Y4.96%
EBIT growth 1Y9.89%
EBIT growth 3Y27.35%
EBIT growth 5Y29.2%
EBIT Next Year44.63%
EBIT Next 3Y17.95%
EBIT Next 5Y13.45%
FCF growth 1Y-28.63%
FCF growth 3Y11.05%
FCF growth 5Y24.85%
OCF growth 1Y-6.61%
OCF growth 3Y7.79%
OCF growth 5Y20.24%