LINDE PLC (LIN)
IE000S9YS762 - Common Stock
LIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
In the past year LIN had a positive cash flow from operations.
In the past 5 years LIN has always been profitable.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
LIN has a better Return On Assets (7.67%) than 86.75% of its industry peers.
LIN has a Return On Equity of 15.61%. This is in the better half of the industry: LIN outperforms 77.11% of its industry peers.
LIN has a Return On Invested Capital of 8.75%. This is amongst the best in the industry. LIN outperforms 80.72% of its industry peers.
LIN had an Average Return On Invested Capital over the past 3 years of 7.28%. This is in line with the industry average of 6.66%.
The 3 year average ROIC (7.28%) for LIN is below the current ROIC(8.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 15.61% | ||
| ROIC | 8.75% |
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 Profit Margin of 18.87%. This is amongst the best in the industry. LIN outperforms 93.98% of its industry peers.
LIN's Profit Margin has declined in the last couple of years.
LIN has a Operating Margin of 24.54%. This is amongst the best in the industry. LIN outperforms 91.57% of its industry peers.
In the last couple of years the Operating Margin of LIN has grown nicely.
LIN's Gross Margin of 46.76% is amongst the best of the industry. LIN outperforms 90.36% of its industry peers.
In the last couple of years the Gross Margin of LIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 18.87% | ||
| GM | 46.76% |
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
LIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LIN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LIN has less shares outstanding
Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
LIN has an Altman-Z score of 3.95. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
LIN's Altman-Z score of 3.95 is amongst the best of the industry. LIN outperforms 85.54% of its industry peers.
LIN has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as LIN would need 3.51 years to pay back of all of its debts.
LIN's Debt to FCF ratio of 3.51 is fine compared to the rest of the industry. LIN outperforms 78.31% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that LIN is not too dependend on debt financing.
LIN has a better Debt to Equity ratio (0.46) than 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.06
WACC8.25%
2.3 Liquidity
A Current Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Current ratio (0.80) than 93.98% of its industry peers.
LIN has a Quick Ratio of 0.80. This is a bad value and indicates that LIN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, LIN is not doing good in the industry: 90.36% of the companies in the same industry are doing better.
The current and quick ratio evaluation for LIN is rather negative, while it does have 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 | 0.8 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.77% 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 16.48% yearly.
The Revenue has decreased by -1.53% in the past year.
Measured over the past years, LIN shows a quite strong growth in Revenue. The Revenue has been growing by 17.23% on average per year.
EPS 1Y (TTM)13.77%
EPS 3Y19.27%
EPS 5Y16.48%
EPS Q2Q%9.65%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Sales Q2Q%-1.14%
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.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y6.52%
EPS Next 2Y11.07%
EPS Next 3Y10.7%
EPS Next 5Y9.9%
Revenue Next Year5.62%
Revenue Next 2Y1.48%
Revenue Next 3Y2.88%
Revenue Next 5Y4.21%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.04, 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 (24.41), we can say LIN is valued slightly more expensively.
A Price/Forward Earnings ratio of 26.17 indicates a quite expensive valuation of LIN.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than 68.67% of the companies in the same industry.
LIN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 26.17 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 61.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.32 | ||
| EV/EBITDA | 18.77 |
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)4.76
PEG (5Y)1.88
EPS Next 2Y11.07%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.25%.
LIN's Dividend Yield is comparable with the industry average which is at 3.07.
With a Dividend Yield of 1.25, LIN pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of LIN is nicely growing with an annual growth rate of 10.17%!
LIN has been paying a dividend for at least 10 years, so it has a reliable track record.
LIN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.17%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
40.04% 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.
DP40.04%
EPS Next 2Y11.07%
EPS Next 3Y10.7%
LINDE PLC
NASDAQ:LIN (7/26/2024, 7:00:02 PM)
After market: 451.39 0 (0%)451.39
+8.36 (+1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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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 | 31.04 | ||
| Fwd PE | 26.17 | ||
| 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)4.76
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 15.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.54% | ||
| PM (TTM) | 18.87% | ||
| GM | 46.76% | ||
| 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 | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.67 | ||
| 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)13.77%
EPS 3Y19.27%
EPS 5Y
EPS Q2Q%
EPS Next Y6.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.53%
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