LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
Taking everything into account, LIN scores 5 out of 10 in our fundamental rating. LIN was compared to 60 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
LIN had positive earnings in the past year.
In the past year LIN had a positive cash flow from operations.
In the past 5 years LIN has always 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 8.19% is amongst the best of the industry. LIN outperforms 88.33% of its industry peers.
With an excellent Return On Equity value of 17.23%, LIN belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
LIN has a better Return On Invested Capital (9.68%) than 85.00% of its industry peers.
LIN had an Average Return On Invested Capital over the past 3 years of 8.66%. This is above the industry average of 6.56%.
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
The Profit Margin of LIN (19.89%) is better than 93.33% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
LIN has a better Operating Margin (26.60%) than 98.33% 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 48.06%, LIN is in the better half of the industry, outperforming 73.33% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still creating some value.
LIN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LIN has been reduced compared to 5 years ago.
LIN has a worse debt/assets ratio than last year.
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 90.00% of its industry peers.
The Debt to FCF ratio of LIN is 4.39, which is a neutral value as it means it would take LIN, 4.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.39, LIN is doing good in the industry, outperforming 80.00% 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.
The Debt to Equity ratio of LIN (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.11
WACC8.69%
2.3 Liquidity
LIN has a Current Ratio of 0.89. 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 0.89. This is amonst the worse of the industry: LIN underperforms 81.67% of its industry peers.
LIN has a Quick Ratio of 0.89. 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's Quick ratio of 0.76 is on the low side compared to the rest of the industry. LIN is outperformed by 80.00% 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.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
The Revenue has been growing slightly by 0.46% in the past year.
The Revenue has been growing slightly by 3.18% on average over the past years.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.29% on average per year.
The Revenue is expected to grow by 5.05% on average over the next years.
EPS Next Y7.39%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue Next Year1.76%
Revenue Next 2Y3.68%
Revenue Next 3Y4.12%
Revenue Next 5Y5.05%
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
With a Price/Earnings ratio of 29.74, LIN can be considered very expensive at the moment.
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 (28.89), we can say LIN is valued inline with the index average.
A Price/Forward Earnings ratio of 27.70 indicates a quite expensive valuation of LIN.
The rest of the industry has a similar Price/Forward Earnings ratio as LIN.
LIN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 27.7 |
4.2 Price Multiples
LIN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 44.29 | ||
| EV/EBITDA | 18.37 |
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)4.03
PEG (5Y)1.85
EPS Next 2Y8.65%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, LIN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.64%!
Dividend Growth(5Y)9.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LIN pays out 40.44% 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.
DP40.44%
EPS Next 2Y8.65%
EPS Next 3Y9.89%
FRA:LIN (3/26/2025, 7:00:00 PM)
427.6
+5.4 (+1.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.92%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap202.22B
Analysts76.97
Price Target486.02 (13.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend5.09
Dividend Growth(5Y)9.64%
DP40.44%
Div Incr Years0
Div Non Decr Years0
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)0.42%
PT rev (3m)0.39%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 27.7 | ||
| P/S | 6.61 | ||
| P/FCF | 44.29 | ||
| P/OCF | 23.15 | ||
| P/B | 5.73 | ||
| P/tB | 264.43 | ||
| EV/EBITDA | 18.37 |
EPS(TTM)14.38
EY3.36%
EPS(NY)15.44
Fwd EY3.61%
FCF(TTM)9.66
FCFY2.26%
OCF(TTM)18.47
OCFY4.32%
SpS64.69
BVpS74.66
TBVpS1.62
PEG (NY)4.03
PEG (5Y)1.85
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
WACC8.69%
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)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 5Y8.29%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%-0.24%
Revenue Next Year1.76%
Revenue Next 2Y3.68%
Revenue Next 3Y4.12%
Revenue Next 5Y5.05%
EBIT growth 1Y8.88%
EBIT growth 3Y18.26%
EBIT growth 5Y21.83%
EBIT Next Year43.02%
EBIT Next 3Y18.28%
EBIT Next 5Y12.71%
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%