LINDE PLC (LIN.DE) Stock Fundamental Analysis
FRA:LIN - Deutsche Boerse Ag - IE000S9YS762 - Common Stock - Currency: EUR
Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 61 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.
LIN had a positive operating cash flow in the past year.
Each year in the past 5 years LIN has been profitable.
Each year in the past 5 years LIN had a positive operating cash flow.
1.2 Ratios
LIN's Return On Assets of 7.99% is amongst the best of the industry. LIN outperforms 85.25% of its industry peers.
LIN has a better Return On Equity (17.38%) than 91.80% of its industry peers.
With an excellent Return On Invested Capital value of 9.45%, LIN belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIN is above the industry average of 6.29%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.45%), indicating increased profibility in the last year.
| 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
The Profit Margin of LIN (20.02%) is better than 96.72% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
LIN has a better Operating Margin (27.03%) than 98.36% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
The Gross Margin of LIN (48.26%) is better than 72.13% of its industry peers.
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
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
The debt/assets ratio for LIN is higher compared to a year ago.
2.2 Solvency
LIN has an Altman-Z score of 3.86. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LIN (3.86) is better than 83.61% 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.
With a decent Debt to FCF ratio value of 4.87, LIN is doing good in the industry, outperforming 75.41% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.58. This is a neutral value indicating LIN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, LIN is doing worse than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.1
WACC8.61%
2.3 Liquidity
A Current Ratio of 0.94 indicates that LIN may have some problems paying its short term obligations.
LIN's Current ratio of 0.94 is on the low side compared to the rest of the industry. LIN is outperformed by 83.61% of its industry peers.
A Quick Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
LIN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. LIN is outperformed by 73.77% 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.
The Earnings Per Share has been growing by 16.11% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.78% in the past year.
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
The Earnings Per Share is expected to grow by 8.29% on average over the next years. This is quite good.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 5.05% on average per year.
EPS Next Y7.3%
EPS Next 2Y8.37%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue Next Year1.71%
Revenue Next 2Y3.55%
Revenue Next 3Y4.04%
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
A Price/Earnings ratio of 28.83 indicates a quite expensive valuation of LIN.
LIN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.21. LIN is around the same levels.
The Price/Forward Earnings ratio is 24.87, which indicates a rather expensive current valuation of LIN.
LIN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LIN to the average of the S&P500 Index (20.44), we can say LIN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than 60.66% of the companies in the same industry.
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 | 43.62 | ||
| EV/EBITDA | 18.09 |
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)3.95
PEG (5Y)1.79
EPS Next 2Y8.37%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, LIN has a reasonable but not impressive dividend return.
LIN's Dividend Yield is comparable with the industry average which is at 3.10.
With a Dividend Yield of 1.34, LIN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
LIN pays out 40.75% 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.
DP40.75%
EPS Next 2Y8.37%
EPS Next 3Y9.89%
FRA:LIN (5/9/2025, 7:00:00 PM)
401
-1.4 (-0.35%)
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 Cap189.64B
Analysts76.97
Price Target437.68 (9.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend4.9
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)-5.92%
PT rev (3m)-9.57%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-2.32%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 24.87 | ||
| P/S | 6.49 | ||
| P/FCF | 43.62 | ||
| P/OCF | 22.25 | ||
| P/B | 5.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.09 |
EPS(TTM)13.91
EY3.47%
EPS(NY)16.12
Fwd EY4.02%
FCF(TTM)9.19
FCFY2.29%
OCF(TTM)18.03
OCFY4.5%
SpS61.8
BVpS71.19
TBVpS-0.07
PEG (NY)3.95
PEG (5Y)1.79
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 | 3.86 |
F-Score7
WACC8.61%
ROIC/WACC1.1
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 Y7.3%
EPS Next 2Y8.37%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
Revenue Next Year1.71%
Revenue Next 2Y3.55%
Revenue Next 3Y4.04%
Revenue Next 5Y5.05%
EBIT growth 1Y8.72%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.6%
EBIT Next 3Y16.93%
EBIT Next 5Y12.71%
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%