LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - IE000S9YS762 - Common Stock
411.4 EUR
-4.2 (-1.01%)
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 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.
Each year in the past 5 years LIN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.80%, LIN belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
LIN has a Return On Equity of 17.43%. This is amongst the best in the industry. LIN outperforms 91.30% of its industry peers.
LIN has a Return On Invested Capital of 9.18%. This is in the better half of the industry: LIN outperforms 75.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LIN is in line with the industry average of 6.71%.
The last Return On Invested Capital (9.18%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.43% | ||
| ROIC | 9.18% |
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
With an excellent Profit Margin value of 20.20%, LIN belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has grown nicely.
With an excellent Operating Margin value of 27.35%, LIN belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
LIN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.45%, LIN is in the better half of the industry, outperforming 71.01% 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 | 27.35% | ||
| PM (TTM) | 20.2% | ||
| GM | 48.45% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still creating some value.
Compared to 1 year ago, LIN has less shares outstanding
Compared to 5 years ago, LIN has less shares outstanding
Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
LIN has an Altman-Z score of 3.78. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
LIN has a Altman-Z score of 3.78. This is in the better half of the industry: LIN outperforms 75.36% of its industry peers.
LIN has a debt to FCF ratio of 5.11. This is a neutral value as LIN would need 5.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.11, LIN is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that LIN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, LIN is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.08
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.93 indicates that LIN may have some problems paying its short term obligations.
The Current ratio of LIN (0.93) is worse than 86.96% of its industry peers.
LIN has a Quick Ratio of 0.93. 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 Quick ratio, with a value of 0.78, LIN is doing worse than 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.62% 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.
The Revenue has been growing slightly by 1.28% in the past year.
The Revenue has been growing slightly by 3.18% on average over the past years.
EPS 1Y (TTM)7.62%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.23%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%2.76%
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 8.51% on average per year.
The Revenue is expected to grow by 5.04% on average over the next years.
EPS Next Y7.1%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue Next Year1.98%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
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
The Price/Earnings ratio is 29.94, which means the current valuation is very expensive for LIN.
The rest of the industry has a similar Price/Earnings ratio as LIN.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (27.03), we can say LIN is valued inline with the index average.
The Price/Forward Earnings ratio is 26.29, which means the current valuation is very expensive for LIN.
62.32% of the companies in the same industry are cheaper than LIN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, LIN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 26.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than the industry average as 68.12% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as LIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.18 | ||
| EV/EBITDA | 18.74 |
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)4.22
PEG (5Y)1.86
EPS Next 2Y8.23%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is slightly below the industry average, which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.34, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.70%!
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.71% of its income as dividend. 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.
DP40.71%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
FRA:LIN (8/22/2025, 7:00:00 PM)
411.4
-4.2 (-1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.55%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap192.91B
Analysts78.06
Price Target446.15 (8.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend4.79
Dividend Growth(5Y)9.7%
DP40.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.03%
Min EPS beat(2)-0.37%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)0.1%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.43%
EPS beat(8)7
Avg EPS beat(8)0.58%
EPS beat(12)11
Avg EPS beat(12)2.21%
EPS beat(16)15
Avg EPS beat(16)2.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-1.93%
Revenue beat(12)3
Avg Revenue beat(12)-2.09%
Revenue beat(16)7
Avg Revenue beat(16)-1.15%
PT rev (1m)0.57%
PT rev (3m)-0.69%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 26.29 | ||
| P/S | 6.74 | ||
| P/FCF | 44.18 | ||
| P/OCF | 22.59 | ||
| P/B | 5.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.74 |
EPS(TTM)13.74
EY3.34%
EPS(NY)15.65
Fwd EY3.8%
FCF(TTM)9.31
FCFY2.26%
OCF(TTM)18.21
OCFY4.43%
SpS61.08
BVpS70.76
TBVpS-2.53
PEG (NY)4.22
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 17.43% | ||
| ROCE | 12.74% | ||
| ROIC | 9.18% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 22.18% | ||
| OM | 27.35% | ||
| PM (TTM) | 20.2% | ||
| GM | 48.45% | ||
| FCFM | 15.25% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 130.01% | ||
| Cap/Sales | 14.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 75.5% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.78 |
F-Score5
WACC8.5%
ROIC/WACC1.08
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)7.62%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.23%
EPS Next Y7.1%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%2.76%
Revenue Next Year1.98%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
EBIT growth 1Y8.79%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.27%
EBIT Next 3Y16.75%
EBIT Next 5Y12.92%
FCF growth 1Y-6.18%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y12.78%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%