LINDE PLC (LIN)
IE000S9YS762 - Common Stock
LIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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
In the past year LIN was profitable.
LIN had a positive operating cash flow in the past year.
Each year in the past 5 years LIN has been profitable.
In the past 5 years LIN always reported a positive cash flow from operatings.
1.2 Ratios
LIN has a Return On Assets of 7.67%. This is amongst the best in the industry. LIN outperforms 82.35% of its industry peers.
LIN's Return On Equity of 15.61% is fine compared to the rest of the industry. LIN outperforms 72.94% of its industry peers.
With a decent Return On Invested Capital value of 8.75%, LIN is doing good in the industry, outperforming 75.29% 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 7.50%.
The 3 year average ROIC (7.26%) 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)7.26%
ROIC(5y)5.77%
1.3 Margins
The Profit Margin of LIN (18.87%) is better than 92.94% of its industry peers.
In the last couple of years the Profit Margin of LIN has declined.
LIN has a better Operating Margin (24.54%) than 90.59% of its industry peers.
LIN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 46.76%, LIN belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
LIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 18.87% | ||
| GM | 46.76% |
OM growth 3Y19.39%
OM growth 5Y10.07%
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.
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.
LIN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.96 indicates that LIN is not in any danger for bankruptcy at the moment.
LIN's Altman-Z score of 3.96 is amongst the best of the industry. LIN outperforms 84.71% of its industry peers.
The Debt to FCF ratio of LIN is 3.51, which is a good value as it means it would take LIN, 3.51 years of fcf income to pay off all of its debts.
LIN has a Debt to FCF ratio of 3.51. This is in the better half of the industry: LIN outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that LIN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, LIN is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.06
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.80 indicates that LIN may have some problems paying its short term obligations.
LIN's Current ratio of 0.80 is on the low side compared to the rest of the industry. LIN is outperformed by 92.94% 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.
LIN's Quick ratio of 0.67 is on the low side compared to the rest of the industry. LIN is outperformed by 89.41% 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 | 0.8 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
LIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.62%, which is quite good.
LIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.48% yearly.
Looking at the last year, LIN shows a decrease in Revenue. The Revenue has decreased by -1.53% in the last year.
LIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.23% yearly.
EPS 1Y (TTM)15.62%
EPS 3Y19.27%
EPS 5Y16.48%
EPS growth Q2Q13.61%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y6.44%
Revenue growth 5Y17.23%
Revenue growth Q2Q5.1%
3.2 Future
The Earnings Per Share is expected to grow by 9.24% on average over the next years. This is quite good.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
EPS Next Y6.52%
EPS Next 2Y11.29%
EPS Next 3Y11.3%
EPS Next 5Y9.24%
Revenue Next Year5.62%
Revenue Next 2Y2.69%
Revenue Next 3Y3.85%
Revenue Next 5Y3.99%
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
A Price/Earnings ratio of 31.19 indicates a quite expensive valuation of LIN.
LIN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.84, LIN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 29.76, LIN can be considered very expensive at the moment.
62.35% of the companies in the same industry are cheaper than LIN, based on the Price/Forward Earnings ratio.
LIN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 29.76 |
4.2 Price Multiples
68.24% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.68 | ||
| EV/EBITDA | 18.81 |
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)4.78
PEG (5Y)1.89
EPS Next 2Y11.29%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 3.34.
With a Dividend Yield of 1.25, LIN pays less dividend than the S&P500 average, which is at 2.41.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
LIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.17%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LIN pays out 40.04% 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.
DP40.04%
EPS Next 2Y11.29%
EPS Next 3Y11.3%
LINDE PLC
NASDAQ:LIN (4/26/2024, 7:01:21 PM)
After market: 443.18 0 (0%)443.18
-0.65 (-0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap213.43B
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)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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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 | 31.19 | ||
| Fwd PE | 29.76 | ||
| 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)4.78
PEG (5Y)1.89
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)
Growth
EPS 1Y (TTM)15.62%
EPS 3Y19.27%
EPS 5Y
EPS growth 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
Revenue growth 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