451.57 USD
+5.93 (+1.33%)
451.57 USD
0 (0%)
Taking everything into account, LIN scores 5 out of 10 in our fundamental rating. LIN was compared to 83 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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
- LIN had positive earnings in the past year.
- In the past year LIN had a positive cash flow from operations.
- LIN had positive earnings in each of the past 5 years.
- Each year in the past 5 years LIN had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.25%, LIN belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 18.37%, LIN belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
- LIN has a better Return On Invested Capital (9.49%) than 79.52% 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 6.11%.
- 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 93.98% of the companies in the same industry.
- In the last couple of years the Operating Margin of LIN has grown nicely.
- The Gross Margin of LIN (48.78%) is better than 92.77% of its industry peers.
- LIN's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 5 years ago, LIN has less shares outstanding
- LIN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.63 indicates that LIN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LIN (3.63) is better than 83.13% 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.
- LIN has a better Debt to FCF ratio (5.11) than 79.52% of its industry peers.
- LIN has a Debt/Equity ratio of 0.61. This is a neutral value indicating LIN is somewhat dependend on debt financing.
- LIN has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.1
WACC8.65%
2.3 Liquidity
- A Current Ratio of 0.82 indicates that LIN may have some problems paying its short term obligations.
- LIN has a Current ratio of 0.82. This is amonst the worse of the industry: LIN underperforms 93.98% of its industry peers.
- LIN has a Quick Ratio of 0.82. 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 worse Quick ratio (0.69) than 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.20% 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 1.45% 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)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
- The Earnings Per Share is expected to grow by 9.02% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y6.94%
EPS Next 2Y7.77%
EPS Next 3Y8.43%
EPS Next 5Y9.02%
Revenue Next Year2.13%
Revenue Next 2Y3.59%
Revenue Next 3Y4.17%
Revenue Next 5Y5.2%
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
- Based on the Price/Earnings ratio of 27.84, the valuation of LIN can be described as expensive.
- LIN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LIN is around the same levels.
- LIN is valuated quite expensively with a Price/Forward Earnings ratio of 25.07.
- LIN's Price/Forward Earnings ratio is in line with the industry average.
- LIN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.84 | ||
| Fwd PE | 25.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than 72.29% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as LIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.54 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- LIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.01
PEG (5Y)1.73
EPS Next 2Y7.77%
EPS Next 3Y8.43%
5. Dividend
5.1 Amount
- LIN has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.23, LIN has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, LIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
- On average, the dividend of LIN grows each year by 9.70%, which is quite nice.
- LIN has paid a dividend for at least 10 years, which is 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.
- LIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.08%
EPS Next 2Y7.77%
EPS Next 3Y8.43%
LINDE PLC / LIN FAQ
What is the fundamental rating for LIN stock?
ChartMill assigns a fundamental rating of 6 / 10 to LIN.
What is the valuation status of LINDE PLC (LIN) stock?
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.
What are the PE and PB ratios of LINDE PLC (LIN) stock?
The Price/Earnings (PE) ratio for LINDE PLC (LIN) is 27.84 and the Price/Book (PB) ratio is 5.46.
How sustainable is the dividend of LINDE PLC (LIN) stock?
The dividend rating of LINDE PLC (LIN) is 4 / 10 and the dividend payout ratio is 39.08%.