LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LIN. LIN was compared to 85 industry peers in the Chemicals industry. LIN scores excellent on profitability, but 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
In the past year LIN was profitable.
LIN had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 8.19%, LIN belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
With an excellent Return On Equity value of 17.23%, LIN belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.68%, LIN belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is above the industry average of 6.65%.
The 3 year average ROIC (8.66%) for LIN is below the current ROIC(9.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.23% | ||
| ROIC | 9.68% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.66%
ROIC(5y)7.15%
1.3 Margins
LIN has a Profit Margin of 19.89%. This is amongst the best in the industry. LIN outperforms 97.59% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.60%, LIN belongs to the best of the industry, outperforming 92.77% of the companies in the same industry.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a Gross Margin of 48.06%. This is amongst the best in the industry. LIN outperforms 90.36% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.6% | ||
| PM (TTM) | 19.89% | ||
| GM | 48.06% |
OM growth 3Y15.55%
OM growth 5Y18.08%
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 4.08 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a better Altman-Z score (4.08) than 89.16% of its industry peers.
LIN has a debt to FCF ratio of 4.39. This is a neutral value as LIN would need 4.39 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.39, LIN is doing good in the industry, outperforming 77.11% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.51. This is a neutral value indicating LIN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.51, LIN is doing good in the industry, outperforming 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.13
WACC8.6%
2.3 Liquidity
A Current Ratio of 0.89 indicates that LIN may have some problems paying its short term obligations.
LIN's Current ratio of 0.89 is on the low side compared to the rest of the industry. LIN is outperformed by 91.57% of its industry peers.
A Quick Ratio of 0.76 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Quick ratio (0.76) than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.15%, 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 16.11% on average per year.
The Revenue has been growing slightly by 0.46% 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)9.15%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%10.58%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
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 7.98% on average per year.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y7.39%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
EPS Next 5Y7.98%
Revenue Next Year1.71%
Revenue Next 2Y3.69%
Revenue Next 3Y4.12%
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
LIN is valuated quite expensively with a Price/Earnings ratio of 29.53.
61.45% of the companies in the same industry are cheaper than LIN, based on the Price/Earnings ratio.
LIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.50 indicates a quite expensive valuation of LIN.
LIN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LIN is more expensive than 63.86% of the companies in the same industry.
LIN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 27.5 |
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 71.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.27 | ||
| EV/EBITDA | 18.36 |
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
PEG (5Y)1.83
EPS Next 2Y8.65%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
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 1.20, LIN pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.64%!
LIN has been paying a dividend for at least 10 years, so it has a reliable track record.
LIN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.64%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
40.44% 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.
DP40.44%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
458
-3.9 (-0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.92%
Inst Owner Change-87.17%
Ins Owners0.18%
Ins Owner Change-3.73%
Market Cap218.08B
Analysts76.77
Price Target507.56 (10.82%)
Short Float %1.09%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend5.54
Dividend Growth(5Y)9.64%
DP40.44%
Div Incr Years31
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.17%
Min EPS beat(2)0.12%
Max EPS beat(2)0.22%
EPS beat(4)4
Avg EPS beat(4)0.52%
Min EPS beat(4)0.12%
Max EPS beat(4)1.02%
EPS beat(8)8
Avg EPS beat(8)1.8%
EPS beat(12)12
Avg EPS beat(12)2.88%
EPS beat(16)16
Avg EPS beat(16)3.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.87%
Revenue beat(16)8
Avg Revenue beat(16)-0.78%
PT rev (1m)-1.05%
PT rev (3m)-0.98%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)-2.8%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-4.84%
Revenue NY rev (1m)-3%
Revenue NY rev (3m)-3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 27.5 | ||
| P/S | 6.61 | ||
| P/FCF | 44.27 | ||
| P/OCF | 23.14 | ||
| P/B | 5.73 | ||
| P/tB | 264.34 | ||
| EV/EBITDA | 18.36 |
EPS(TTM)15.51
EY3.39%
EPS(NY)16.66
Fwd EY3.64%
FCF(TTM)10.35
FCFY2.26%
OCF(TTM)19.79
OCFY4.32%
SpS69.31
BVpS80
TBVpS1.73
PEG (NY)4
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.23% | ||
| ROCE | 13.38% | ||
| ROIC | 9.68% | ||
| ROICexc | 10.4% | ||
| ROICexgc | 24.39% | ||
| OM | 26.6% | ||
| PM (TTM) | 19.89% | ||
| GM | 48.06% | ||
| FCFM | 14.93% |
ROA(3y)7.02%
ROA(5y)5.72%
ROE(3y)14.4%
ROE(5y)11.44%
ROIC(3y)8.66%
ROIC(5y)7.15%
ROICexc(3y)9.32%
ROICexc(5y)7.64%
ROICexgc(3y)23.11%
ROICexgc(5y)19.12%
ROCE(3y)12%
ROCE(5y)9.82%
ROICexcg growth 3Y14.97%
ROICexcg growth 5Y24.05%
ROICexc growth 3Y19.06%
ROICexc growth 5Y24.87%
OM growth 3Y15.55%
OM growth 5Y18.08%
PM growth 3Y16.98%
PM growth 5Y19.7%
GM growth 3Y3.75%
GM growth 5Y3.21%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 118.97% | ||
| Cap/Sales | 13.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 75.03% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.08 |
F-Score8
WACC8.6%
ROIC/WACC1.13
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)9.15%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%10.58%
EPS Next Y7.39%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
EPS Next 5Y7.98%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
Revenue Next Year1.71%
Revenue Next 2Y3.69%
Revenue Next 3Y4.12%
Revenue Next 5Y5.11%
EBIT growth 1Y8.88%
EBIT growth 3Y18.26%
EBIT growth 5Y21.83%
EBIT Next Year43.02%
EBIT Next 3Y18.28%
EBIT Next 5Y11.51%
FCF growth 1Y-10.73%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y1.27%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%