421.43 USD
+2.44 (+0.58%)
422.45 USD
+1.02 (+0.24%)
Taking everything into account, LIN scores 6 out of 10 in our fundamental rating. LIN was compared to 84 industry peers in the Chemicals industry. LIN scores excellent on profitability, but 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.
LIN had a positive operating cash flow in the past year.
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
LIN's Return On Assets of 8.25% is amongst the best of the industry. LIN outperforms 86.90% of its industry peers.
Looking at the Return On Equity, with a value of 18.37%, LIN belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
LIN has a better Return On Invested Capital (9.49%) than 79.76% of its industry peers.
LIN had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 6.09%.
The last Return On Invested Capital (9.49%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 21.17%, LIN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has grown nicely.
Looking at the Operating Margin, with a value of 27.52%, LIN belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a better Gross Margin (48.78%) than 92.86% 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.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
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
LIN has an Altman-Z score of 3.45. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.45, LIN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.61. This is a neutral value indicating LIN is somewhat dependend on debt financing.
LIN's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. LIN outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.1
WACC8.6%
2.3 Liquidity
A Current Ratio of 0.82 indicates that LIN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, LIN is doing worse than 92.86% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that LIN may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, LIN is not doing good in the industry: 86.90% of the companies in the same industry are doing better.
LIN does not score too well on the current and quick ratio evaluation. However, as it has 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
LIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.20%.
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%.
The Revenue has been growing slightly by 3.18% on average over the past years.
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.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y6.92%
EPS Next 2Y7.82%
EPS Next 3Y8.48%
EPS Next 5Y8.71%
Revenue Next Year2.18%
Revenue Next 2Y3.6%
Revenue Next 3Y4.2%
Revenue Next 5Y5.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.98, the valuation of LIN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LIN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (26.39), we can say LIN is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.37, LIN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, LIN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 66.67% of the companies listed 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 | 38.77 | ||
| EV/EBITDA | 16.47 |
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)3.75
PEG (5Y)1.61
EPS Next 2Y7.82%
EPS Next 3Y8.48%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.43%.
LIN's Dividend Yield is comparable with the industry average which is at 2.46.
Compared to the average S&P500 Dividend Yield of 1.87, LIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
LIN has been paying a dividend for at least 10 years, so it has 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 2Y7.82%
EPS Next 3Y8.48%
421.43
+2.44 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.56%
Inst Owner Change0.72%
Ins Owners0.07%
Ins Owner Change-2.61%
Market Cap196.79B
Revenue(TTM)33.50B
Net Income(TTM)7.09B
Analysts80.67
Price Target514.13 (22%)
Short Float %1.45%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)-1.85%
PT rev (3m)-1.19%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 23.37 | ||
| P/S | 5.87 | ||
| P/FCF | 38.77 | ||
| P/OCF | 19.43 | ||
| P/B | 5.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.47 |
EPS(TTM)16.22
EY3.85%
EPS(NY)18.03
Fwd EY4.28%
FCF(TTM)10.87
FCFY2.58%
OCF(TTM)21.69
OCFY5.15%
SpS71.75
BVpS82.7
TBVpS-2.45
PEG (NY)3.75
PEG (5Y)1.61
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 | 3.45 |
F-Score6
WACC8.6%
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)7.2%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%6.85%
EPS Next Y6.92%
EPS Next 2Y7.82%
EPS Next 3Y8.48%
EPS Next 5Y8.71%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%3.1%
Revenue Next Year2.18%
Revenue Next 2Y3.6%
Revenue Next 3Y4.2%
Revenue Next 5Y5.13%
EBIT growth 1Y8%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.51%
EBIT Next 3Y16.66%
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 2 / 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 6.92% 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%.