LINDE PLC (LIN)
IE000S9YS762 - Common Stock
Taking everything into account, LIN scores 5 out of 10 in our fundamental rating. LIN was compared to 84 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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 4 of the past 5 years.
Of the past 5 years LIN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LIN (7.98%) is better than 89.29% of its industry peers.
Looking at the Return On Equity, with a value of 16.76%, LIN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
LIN's Return On Invested Capital of 9.04% is amongst the best of the industry. LIN outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is in line with the industry average of 6.35%.
The last Return On Invested Capital (9.04%) for LIN is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 16.76% | ||
| ROIC | 9.04% |
ROA(3y)5.86%
ROA(5y)4.61%
ROE(3y)11.55%
ROE(5y)8.92%
ROIC(3y)7.28%
ROIC(5y)5.78%
1.3 Margins
LIN has a better Profit Margin (19.49%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of LIN has declined.
The Operating Margin of LIN (25.47%) is better than 92.86% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN has a better Gross Margin (47.56%) than 89.29% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.47% | ||
| PM (TTM) | 19.49% | ||
| GM | 47.56% |
OM growth 3Y19.64%
OM growth 5Y10.21%
PM growth 3Y27.14%
PM growth 5Y-8.57%
GM growth 3Y2.41%
GM growth 5Y3.59%
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.
There is no outstanding debt for LIN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.14 indicates that LIN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.14, LIN belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
The Debt to FCF ratio of LIN is 4.44, which is a neutral value as it means it would take LIN, 4.44 years of fcf income to pay off all of its debts.
LIN's Debt to FCF ratio of 4.44 is fine compared to the rest of the industry. LIN outperforms 75.00% of its industry peers.
LIN has a Debt/Equity ratio of 0.53. This is a neutral value indicating LIN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, LIN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.09
WACC8.27%
2.3 Liquidity
LIN has a Current Ratio of 0.95. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, LIN is doing worse than 92.86% of the companies in the same industry.
LIN has a Quick Ratio of 0.95. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LIN (0.80) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.85% over the past year.
The Earnings Per Share has been growing by 16.48% on average over the past years. This is quite good.
LIN shows a decrease in Revenue. In the last year, the revenue decreased by -0.81%.
The Revenue has been growing by 17.23% on average over the past years. This is quite good.
EPS 1Y (TTM)11.85%
EPS 3Y19.27%
EPS 5Y16.48%
EPS Q2Q%7.84%
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%0.77%
3.2 Future
LIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.90% yearly.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y6.52%
EPS Next 2Y11.2%
EPS Next 3Y10.86%
EPS Next 5Y9.9%
Revenue Next Year5.62%
Revenue Next 2Y1.14%
Revenue Next 3Y2.65%
Revenue Next 5Y4.21%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.63, 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 (30.52), we can say LIN is valued inline with the index average.
The Price/Forward Earnings ratio is 27.12, which means the current valuation is very expensive for LIN.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 70.24% of the companies in the same industry.
LIN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 27.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than 72.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LIN is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.47 | ||
| EV/EBITDA | 19.57 |
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)4.85
PEG (5Y)1.92
EPS Next 2Y11.2%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 2.96.
Compared to an average S&P500 Dividend Yield of 2.26, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of LIN grows each year by 12.74%, which is quite nice.
LIN has been paying a dividend for at least 10 years, so it has a reliable track record.
LIN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.74%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
LIN pays out 40.17% of its income as dividend. 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.
DP40.17%
EPS Next 2Y11.2%
EPS Next 3Y10.86%
LINDE PLC
NASDAQ:LIN (9/13/2024, 8:26:52 PM)
After market: 468.81 0 (0%)468.81
+1.47 (+0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap225.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 27.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.85
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 16.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.47% | ||
| PM (TTM) | 19.49% | ||
| GM | 47.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.85%
EPS 3Y19.27%
EPS 5Y
EPS Q2Q%
EPS Next Y6.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y6.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y