LINDE PLC (LIN) Stock Fundamental Analysis
USA - NASDAQ:LIN - IE000S9YS762 - Common Stock
444.24 USD
-7.18 (-1.59%)
444.24 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LIN. LIN was compared to 83 industry peers in the Chemicals industry. LIN has an excellent profitability rating, 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.
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
LIN has a better Return On Assets (7.80%) than 86.75% of its industry peers.
With an excellent Return On Equity value of 17.43%, LIN belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.18%, LIN is doing good in the industry, outperforming 78.31% of the companies in the same industry.
LIN had an Average Return On Invested Capital over the past 3 years of 8.64%. This is above the industry average of 6.30%.
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
LIN's Profit Margin of 20.20% is amongst the best of the industry. LIN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of LIN has grown nicely.
LIN's Operating Margin of 27.35% is amongst the best of the industry. LIN outperforms 93.98% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
LIN's Gross Margin of 48.45% is amongst the best of the industry. LIN outperforms 93.98% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LIN is 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.
The debt/assets ratio for LIN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.58 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN has a Altman-Z score of 3.58. This is amongst the best in the industry. LIN outperforms 85.54% of its industry peers.
The Debt to FCF ratio of LIN is 5.11, which is a neutral value as it means it would take LIN, 5.11 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.11, LIN belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that LIN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, LIN is in line with its industry, outperforming 54.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.07
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.93 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Current ratio (0.93) than 92.77% of its industry peers.
A Quick Ratio of 0.78 indicates that LIN may have some problems paying its short term obligations.
The Quick ratio of LIN (0.78) is worse than 84.34% of its industry peers.
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 | 0.93 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.62% over the past year.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
Looking at the last year, LIN shows a small growth in Revenue. The Revenue has grown by 1.28% in the last 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)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.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y7.13%
EPS Next 2Y8.24%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue Next Year2.08%
Revenue Next 2Y3.84%
Revenue Next 3Y4.49%
Revenue Next 5Y4.83%
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.
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 27.85, the valuation of LIN can be described as expensive.
LIN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (27.29), we can say LIN is valued inline with the index average.
LIN is valuated rather expensively with a Price/Forward Earnings ratio of 24.45.
LIN's Price/Forward Earnings is on the same level as the industry average.
LIN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.85 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
69.88% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.09 | ||
| EV/EBITDA | 17.52 |
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)3.91
PEG (5Y)1.73
EPS Next 2Y8.24%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, LIN has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, LIN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 9.70%!
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
40.71% 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.
DP40.71%
EPS Next 2Y8.24%
EPS Next 3Y9.89%
444.24
-7.18 (-1.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change0.18%
Ins Owners0.21%
Ins Owner Change-3.38%
Market Cap208.31B
Analysts78.67
Price Target522.31 (17.57%)
Short Float %1.18%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.48%
PT rev (3m)2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.85 | ||
| Fwd PE | 24.45 | ||
| P/S | 6.27 | ||
| P/FCF | 41.09 | ||
| P/OCF | 21.02 | ||
| P/B | 5.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.52 |
EPS(TTM)15.95
EY3.59%
EPS(NY)18.17
Fwd EY4.09%
FCF(TTM)10.81
FCFY2.43%
OCF(TTM)21.14
OCFY4.76%
SpS70.9
BVpS82.14
TBVpS-2.94
PEG (NY)3.91
PEG (5Y)1.73
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 | 3.58 |
F-Score5
WACC8.59%
ROIC/WACC1.07
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 Y7.13%
EPS Next 2Y8.24%
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 Year2.08%
Revenue Next 2Y3.84%
Revenue Next 3Y4.49%
Revenue Next 5Y4.83%
EBIT growth 1Y8.79%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.22%
EBIT Next 3Y16.69%
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%