LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
LIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. LIN has an excellent profitability rating, but 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.
In the past 5 years LIN has always been profitable.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LIN's Return On Assets of 7.99% is amongst the best of the industry. LIN outperforms 89.41% of its industry peers.
LIN has a better Return On Equity (17.38%) than 87.06% of its industry peers.
With an excellent Return On Invested Capital value of 9.45%, LIN belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIN is in line with the industry average of 6.84%.
The last Return On Invested Capital (9.45%) for LIN is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROIC | 9.45% |
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 20.02% is amongst the best of the industry. LIN outperforms 97.65% of its industry peers.
LIN's Profit Margin has improved in the last couple of years.
LIN has a Operating Margin of 27.03%. This is amongst the best in the industry. LIN outperforms 94.12% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
LIN's Gross Margin of 48.26% is amongst the best of the industry. LIN outperforms 91.76% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LIN is still creating some value.
The number of shares outstanding for LIN has been reduced compared to 1 year ago.
LIN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LIN has a worse debt to assets ratio.
2.2 Solvency
LIN has an Altman-Z score of 3.88. This indicates that LIN is financially healthy and has little risk of bankruptcy at the moment.
LIN's Altman-Z score of 3.88 is amongst the best of the industry. LIN outperforms 83.53% of its industry peers.
LIN has a debt to FCF ratio of 4.87. This is a neutral value as LIN would need 4.87 years to pay back of all of its debts.
LIN's Debt to FCF ratio of 4.87 is fine compared to the rest of the industry. LIN outperforms 78.82% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that LIN is somewhat dependend on debt financing.
LIN's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. LIN outperforms 56.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.1
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.94 indicates that LIN may have some problems paying its short term obligations.
LIN has a worse Current ratio (0.94) than 89.41% of its industry peers.
LIN has a Quick Ratio of 0.94. 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. LIN is outperformed by 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
Measured over the past years, LIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.11% on average per year.
LIN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.78%.
LIN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
3.2 Future
The Earnings Per Share is expected to grow by 7.63% on average over the next years.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
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
The Price/Earnings ratio is 29.26, which means the current valuation is very expensive for LIN.
The rest of the industry has a similar Price/Earnings ratio as LIN.
LIN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.40, which means the current valuation is very expensive for LIN.
60.00% of the companies in the same industry are cheaper than LIN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, LIN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 25.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIN is valued a bit more expensive than 65.88% 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 | 44.07 | ||
| EV/EBITDA | 18.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LIN does not grow enough to justify the current Price/Earnings ratio.
LIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.3
PEG (5Y)1.82
EPS Next 2Y8.02%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 3.75.
With a Dividend Yield of 1.31, LIN pays less dividend than the S&P500 average, which is at 2.44.
| 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 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 40.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
LIN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.75%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
459.75
+3.89 (+0.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner Change0.15%
Ins Owners0.21%
Ins Owner Change11.34%
Market Cap216.41B
Analysts76.25
Price Target510.51 (11.04%)
Short Float %1.09%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.13%
Min EPS beat(2)-0.37%
Max EPS beat(2)0.12%
EPS beat(4)3
Avg EPS beat(4)0.18%
Min EPS beat(4)-0.37%
Max EPS beat(4)0.75%
EPS beat(8)7
Avg EPS beat(8)0.74%
EPS beat(12)11
Avg EPS beat(12)2.47%
EPS beat(16)15
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)3
Avg Revenue beat(12)-2.13%
Revenue beat(16)7
Avg Revenue beat(16)-1.05%
PT rev (1m)0.65%
PT rev (3m)0.08%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 25.4 | ||
| P/S | 6.55 | ||
| P/FCF | 44.07 | ||
| P/OCF | 22.47 | ||
| P/B | 5.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.2 |
EPS(TTM)15.71
EY3.42%
EPS(NY)18.1
Fwd EY3.94%
FCF(TTM)10.43
FCFY2.27%
OCF(TTM)20.46
OCFY4.45%
SpS70.14
BVpS80.8
TBVpS-0.08
PEG (NY)4.3
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.38% | ||
| ROCE | 13.08% | ||
| ROIC | 9.45% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 23.42% | ||
| OM | 27.03% | ||
| PM (TTM) | 20.02% | ||
| GM | 48.26% | ||
| FCFM | 14.87% |
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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 126.14% | ||
| Cap/Sales | 14.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | 74.29% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.88 |
F-Score7
WACC8.58%
ROIC/WACC1.1
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)8.05%
EPS 3Y13.21%
EPS 5Y16.11%
EPS Q2Q%5.33%
EPS Next Y6.8%
EPS Next 2Y8.02%
EPS Next 3Y9.89%
EPS Next 5Y7.63%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
Revenue Next Year1.15%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.78%
EBIT growth 1Y8.72%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year39.36%
EBIT Next 3Y16.68%
EBIT Next 5Y12.13%
FCF growth 1Y-9.37%
FCF growth 3Y-9.47%
FCF growth 5Y14.47%
OCF growth 1Y9.78%
OCF growth 3Y-1.05%
OCF growth 5Y8.77%