407.14 USD
-3.18 (-0.78%)
407.28 USD
+0.14 (+0.03%)
We assign a fundamental rating of 6 out of 10 to LIN. LIN was compared to 81 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.
Each year in the past 5 years LIN has been profitable.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
LIN's Return On Assets of 8.25% is amongst the best of the industry. LIN outperforms 86.42% of its industry peers.
The Return On Equity of LIN (18.37%) is better than 86.42% of its industry peers.
The Return On Invested Capital of LIN (9.49%) is better than 80.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is above the industry average of 6.15%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 18.37% | ||
| ROIC | 9.49% |
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
The Profit Margin of LIN (21.17%) is better than 100.00% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
LIN's Operating Margin of 27.52% is amongst the best of the industry. LIN outperforms 93.83% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
The Gross Margin of LIN (48.78%) is better than 93.83% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.52% | ||
| PM (TTM) | 21.17% | ||
| GM | 48.78% |
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.
LIN has less shares outstanding than it did 1 year ago.
LIN has less shares outstanding than it did 5 years ago.
LIN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.37 indicates that LIN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, LIN belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
The Debt to FCF ratio of LIN is 5.11, which is a neutral value as it means it would take LIN, 5.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.11, LIN belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that LIN is somewhat dependend on debt financing.
LIN has a better Debt to Equity ratio (0.61) than 60.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.11
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.82 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Current ratio (0.82) than 92.59% of its industry peers.
A Quick Ratio of 0.69 indicates that LIN may have some problems paying its short term obligations.
The Quick ratio of LIN (0.69) is worse than 86.42% of its industry peers.
The current and quick ratio evaluation for LIN is rather negative, while it does have 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 | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.20% over the past year.
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.
LIN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.45%.
LIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
Revenue 1Y (TTM)1.45%
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 8.71% on average per year.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y7.07%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
EPS Next 5Y8.71%
Revenue Next Year2.02%
Revenue Next 2Y3.51%
Revenue Next 3Y4.43%
Revenue Next 5Y5.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 25.10, LIN can be considered very expensive at the moment.
LIN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. LIN is around the same levels.
With a Price/Forward Earnings ratio of 22.41, LIN is valued on the expensive side.
LIN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. LIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than 66.67% of the companies in the same industry.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.45 | ||
| EV/EBITDA | 15.96 |
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)3.55
PEG (5Y)1.56
EPS Next 2Y8.24%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 3.88.
LIN's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 39.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of LIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.08%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
407.14
-3.18 (-0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change0.7%
Ins Owners0.21%
Ins Owner Change-2.87%
Market Cap190.11B
Revenue(TTM)33.50B
Net Income(TTM)7.09B
Analysts79.33
Price Target513.64 (26.16%)
Short Float %1.42%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP39.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-0.22%
Max EPS beat(2)0.43%
EPS beat(4)2
Avg EPS beat(4)-0.01%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.43%
EPS beat(8)6
Avg EPS beat(8)0.47%
EPS beat(12)10
Avg EPS beat(12)1.8%
EPS beat(16)14
Avg EPS beat(16)2.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-2.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.27%
PT rev (1m)-1.66%
PT rev (3m)-1.19%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.41 | ||
| P/S | 5.67 | ||
| P/FCF | 37.45 | ||
| P/OCF | 18.77 | ||
| P/B | 4.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.96 |
EPS(TTM)16.22
EY3.98%
EPS(NY)18.17
Fwd EY4.46%
FCF(TTM)10.87
FCFY2.67%
OCF(TTM)21.69
OCFY5.33%
SpS71.75
BVpS82.7
TBVpS-2.45
PEG (NY)3.55
PEG (5Y)1.56
Graham Number173.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 18.37% | ||
| ROCE | 13.21% | ||
| ROIC | 9.49% | ||
| ROICexc | 10.1% | ||
| ROICexgc | 23.27% | ||
| OM | 27.52% | ||
| PM (TTM) | 21.17% | ||
| GM | 48.78% | ||
| FCFM | 15.15% |
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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 135.62% | ||
| Cap/Sales | 15.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | 71.56% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.37 |
F-Score6
WACC8.58%
ROIC/WACC1.11
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 Y7.07%
EPS Next 2Y8.24%
EPS Next 3Y8.82%
EPS Next 5Y8.71%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
Revenue Next Year2.02%
Revenue Next 2Y3.51%
Revenue Next 3Y4.43%
Revenue Next 5Y5.11%
EBIT growth 1Y8%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.14%
EBIT Next 3Y16.76%
EBIT Next 5Y12.7%
FCF growth 1Y-0.49%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y16.79%
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 3 / 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 7.07% 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 39.08%.