LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LIN. LIN was compared to 69 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
LIN had positive earnings in the past year.
In the past year LIN had a positive cash flow from operations.
LIN had positive earnings in each of the past 5 years.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.99%, LIN belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
With an excellent Return On Equity value of 17.38%, LIN belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
The Return On Invested Capital of LIN (9.45%) is better than 79.71% 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 6.66%.
The last Return On Invested Capital (9.45%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| 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
LIN has a better Profit Margin (20.02%) than 98.55% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
Looking at the Operating Margin, with a value of 27.03%, LIN belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
In the last couple of years the Operating Margin of LIN has grown nicely.
With a decent Gross Margin value of 48.26%, LIN is doing good in the industry, outperforming 71.01% 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
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 3.93 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a better Altman-Z score (3.93) than 76.81% of its industry peers.
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.
LIN has a Debt to FCF ratio of 4.87. This is in the better half of the industry: LIN outperforms 73.91% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that LIN is somewhat dependend on debt financing.
LIN has a worse Debt to Equity ratio (0.58) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.11
WACC8.48%
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.
LIN has a Current ratio of 0.94. This is amonst the worse of the industry: LIN underperforms 85.51% of its industry peers.
A Quick Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Quick ratio (0.80) than 76.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.05% 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 0.78%.
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.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y6.85%
EPS Next 2Y8.2%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue Next Year1.16%
Revenue Next 2Y3.39%
Revenue Next 3Y4.1%
Revenue Next 5Y4.78%
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
Based on the Price/Earnings ratio of 29.76, the valuation of LIN can be described as expensive.
LIN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (26.57), we can say LIN is valued inline with the index average.
A Price/Forward Earnings ratio of 25.74 indicates a quite expensive valuation of LIN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LIN to the average of the S&P500 Index (22.41), we can say LIN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than the industry average as 63.77% of the companies are valued more cheaply.
LIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.8 | ||
| EV/EBITDA | 18.49 |
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)4.35
PEG (5Y)1.85
EPS Next 2Y8.2%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, LIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
40.75% 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.
DP40.75%
EPS Next 2Y8.2%
EPS Next 3Y9.89%
FRA:LIN (6/16/2025, 7:00:00 PM)
403.8
-4.2 (-1.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap190.08B
Analysts76.25
Price Target442.91 (9.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend4.83
Dividend Growth(5Y)9.7%
DP40.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-1.42%
PT rev (3m)-8.87%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.74 | ||
| P/S | 6.66 | ||
| P/FCF | 44.8 | ||
| P/OCF | 22.84 | ||
| P/B | 5.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.49 |
EPS(TTM)13.57
EY3.36%
EPS(NY)15.69
Fwd EY3.89%
FCF(TTM)9.01
FCFY2.23%
OCF(TTM)17.68
OCFY4.38%
SpS60.6
BVpS69.81
TBVpS-0.07
PEG (NY)4.35
PEG (5Y)1.85
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 | 3.93 |
F-Score7
WACC8.48%
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)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
EPS Next Y6.85%
EPS Next 2Y8.2%
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 Year1.16%
Revenue Next 2Y3.39%
Revenue Next 3Y4.1%
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%