LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - IE000S9YS762 - Common Stock
478.29 USD
-3.86 (-0.8%)
478.29 USD
0 (0%)
LIN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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.
In the past year LIN had a positive cash flow from operations.
LIN had positive earnings in each of the past 5 years.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.80%, LIN belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.43%, LIN belongs to the top 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 79.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LIN is above the industry average of 6.34%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.18%), indicating increased profibility in the last year.
| 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
The Profit Margin of LIN (20.20%) is better than 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 97.59% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN's Gross Margin of 48.45% is amongst the best of the industry. LIN outperforms 92.77% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
The number of shares outstanding for LIN has been reduced compared to 5 years ago.
LIN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.79 indicates that LIN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.79, LIN belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
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.
LIN has a Debt to FCF ratio of 5.11. This is amongst the best in the industry. LIN outperforms 80.72% of its industry peers.
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 | 3.79 |
ROIC/WACC1.07
WACC8.59%
2.3 Liquidity
LIN has a Current Ratio of 0.93. 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 0.93, LIN is doing worse than 91.57% of the companies in the same industry.
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
LIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.62%.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.11% yearly.
The Revenue has been growing slightly by 1.28% in the past year.
The Revenue has been growing slightly by 3.18% on average over the past years.
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
LIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.51% yearly.
The Revenue is expected to grow by 5.04% on average over the next years.
EPS Next Y7.1%
EPS Next 2Y8.23%
EPS Next 3Y9.89%
EPS Next 5Y8.51%
Revenue Next Year1.98%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 29.99, the valuation of LIN can be described as expensive.
LIN's Price/Earnings is on the same level as the industry average.
LIN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 26.33, the valuation of LIN can be described as expensive.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 60.24% of the companies in the same industry.
LIN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 26.33 |
4.2 Price Multiples
LIN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LIN is more expensive than 63.86% of the companies in the same industry.
LIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.24 | ||
| EV/EBITDA | 18.76 |
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)4.22
PEG (5Y)1.86
EPS Next 2Y8.23%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.24%.
Compared to an average industry Dividend Yield of 3.44, LIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, LIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
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 2Y8.23%
EPS Next 3Y9.89%
478.29
-3.86 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.55%
Inst Owner Change-3.67%
Ins Owners0.21%
Ins Owner Change8.54%
Market Cap224.27B
Analysts78.06
Price Target519.82 (8.68%)
Short Float %1.04%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)1.26%
PT rev (3m)2.49%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 26.33 | ||
| P/S | 6.75 | ||
| P/FCF | 44.24 | ||
| P/OCF | 22.63 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.76 |
EPS(TTM)15.95
EY3.33%
EPS(NY)18.17
Fwd EY3.8%
FCF(TTM)10.81
FCFY2.26%
OCF(TTM)21.14
OCFY4.42%
SpS70.9
BVpS82.14
TBVpS-2.94
PEG (NY)4.22
PEG (5Y)1.86
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 | 3.79 |
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 Y7.1%
EPS Next 2Y8.23%
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 Year1.98%
Revenue Next 2Y3.77%
Revenue Next 3Y4.46%
Revenue Next 5Y5.04%
EBIT growth 1Y8.79%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year40.27%
EBIT Next 3Y16.75%
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%