LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
LIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. LIN has an excellent profitability rating, 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
LIN had positive earnings in the past year.
In the past year LIN had a positive cash flow from operations.
Of the past 5 years LIN 4 years were profitable.
LIN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LIN has a Return On Assets of 7.73%. This is amongst the best in the industry. LIN outperforms 87.95% of its industry peers.
With an excellent Return On Equity value of 16.29%, LIN belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
LIN's Return On Invested Capital of 8.98% is amongst the best of the industry. LIN outperforms 81.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is in line with the industry average of 6.57%.
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
Looking at the Profit Margin, with a value of 19.33%, LIN belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
LIN's Profit Margin has declined in the last couple of years.
LIN's Operating Margin of 25.85% is amongst the best of the industry. LIN outperforms 92.77% 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 47.75%, LIN belongs to the top of the industry, outperforming 90.36% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still 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 3.84. 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 3.84, LIN belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
The Debt to FCF ratio of LIN is 4.50, which is a neutral value as it means it would take LIN, 4.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LIN (4.50) is better than 74.70% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.06
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.96 indicates that LIN may have some problems paying its short term obligations.
The Current ratio of LIN (0.96) is worse than 91.57% of its industry peers.
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 has a Quick ratio of 0.81. This is amonst the worse of the industry: LIN underperforms 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.80% over the past year.
The Earnings Per Share has been growing by 16.86% on average over the past years. This is quite good.
Looking at the last year, LIN shows a small growth in Revenue. The Revenue has grown by 1.77% in the last year.
Measured over the past years, LIN shows a quite strong growth in Revenue. The Revenue has been growing by 17.23% on average per year.
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
The Earnings Per Share is expected to grow by 9.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.84% on average over the next years.
EPS Next Y9.9%
EPS Next 2Y9.71%
EPS Next 3Y9.86%
EPS Next 5Y9.34%
Revenue Next Year1.4%
Revenue Next 2Y3.21%
Revenue Next 3Y3.97%
Revenue Next 5Y4.84%
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.
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
With a Price/Earnings ratio of 29.14, LIN can be considered very expensive at the moment.
LIN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (28.64), we can say LIN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.77, the valuation of LIN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 63.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.51. LIN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 25.77 |
4.2 Price Multiples
72.29% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
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 | 42.47 | ||
| EV/EBITDA | 18.16 |
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)2.94
PEG (5Y)1.73
EPS Next 2Y9.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.28, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 12.74%!
LIN has paid a dividend for at least 10 years, which is 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
LIN pays out 40.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
LIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.92%
EPS Next 2Y9.71%
EPS Next 3Y9.86%
LINDE PLC
NASDAQ:LIN (1/23/2025, 8:00:02 PM)
After market: 440.83 0 (0%)440.83
-1.77 (-0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change-0.2%
Ins Owners0.19%
Ins Owner Change-3.89%
Market Cap209.91B
Analysts75.76
Price Target512.96 (16.36%)
Short Float %1.38%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.09
Dividend Growth(5Y)12.74%
DP40.92%
Div Incr Years31
Div Non Decr Years31
Ex-DateN/A
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)0.08%
PT rev (3m)2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 25.77 | ||
| P/S | 6.36 | ||
| P/FCF | 42.47 | ||
| P/OCF | 22.47 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.16 |
EPS(TTM)15.13
EY3.43%
EPS(NY)17.1
Fwd EY3.88%
FCF(TTM)10.38
FCFY2.35%
OCF(TTM)19.62
OCFY4.45%
SpS69.36
BVpS82.27
TBVpS-0.1
PEG (NY)2.94
PEG (5Y)1.73
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 | 3.84 |
F-Score7
WACC8.46%
ROIC/WACC1.06
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 5Y9.34%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%2.46%
Revenue Next Year1.4%
Revenue Next 2Y3.21%
Revenue Next 3Y3.97%
Revenue Next 5Y4.84%
EBIT growth 1Y9.89%
EBIT growth 3Y27.35%
EBIT growth 5Y29.2%
EBIT Next Year44.71%
EBIT Next 3Y17.98%
EBIT Next 5Y13.36%
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%