LINDE PLC (LIN) Stock Fundamental Analysis
NASDAQ:LIN - Nasdaq - IE000S9YS762 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LIN. LIN was compared to 85 industry peers in the Chemicals industry. LIN scores excellent on profitability, but 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.
Each year in the past 5 years LIN has been profitable.
LIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LIN (7.99%) is better than 88.24% of its industry peers.
With an excellent Return On Equity value of 17.38%, LIN belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
The Return On Invested Capital of LIN (9.45%) is better than 81.18% 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 7.03%.
The 3 year average ROIC (8.64%) for LIN is below the current ROIC(9.45%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 27.03%, LIN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Operating Margin of LIN has grown nicely.
Looking at the Gross Margin, with a value of 48.26%, LIN belongs to the top 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 | 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
LIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LIN has less shares outstanding
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
An Altman-Z score of 3.91 indicates that LIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of LIN (3.91) is better than 84.71% of its industry peers.
The Debt to FCF ratio of LIN is 4.87, which is a neutral value as it means it would take LIN, 4.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.87, LIN is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
LIN has a Debt/Equity ratio of 0.58. This is a neutral value indicating LIN is somewhat dependend on debt financing.
LIN has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.1
WACC8.57%
2.3 Liquidity
LIN has a Current 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 has a worse Current ratio (0.94) than 89.41% of its industry peers.
A Quick Ratio of 0.80 indicates that LIN may have some problems paying 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
The Earnings Per Share has grown by an nice 8.05% over the past year.
The Earnings Per Share has been growing by 16.11% on average over the past years. This is quite good.
Looking at the last year, LIN shows a small growth in Revenue. The Revenue has grown by 0.78% in the last year.
Measured over the past years, LIN shows a small growth in Revenue. The Revenue has been growing by 3.18% on average per year.
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
LIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.29% yearly.
LIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y6.85%
EPS Next 2Y8.2%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue Next Year1.09%
Revenue Next 2Y3.4%
Revenue Next 3Y4.11%
Revenue Next 5Y5.05%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.76, LIN can be considered very expensive at the moment.
LIN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, LIN is valued at the same level.
LIN is valuated quite expensively with a Price/Forward Earnings ratio of 25.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 62.35% of the companies listed in the same industry.
LIN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIN indicates a slightly more expensive valuation: LIN is more expensive than 69.41% of the companies listed in the same industry.
LIN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.82 | ||
| EV/EBITDA | 18.36 |
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)4.35
PEG (5Y)1.85
EPS Next 2Y8.2%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
LIN has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
LIN's Dividend Yield is comparable with the industry average which is at 3.77.
With a Dividend Yield of 1.29, LIN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
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)9.7%
Div Incr Years31
Div Non Decr Years31
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 2Y8.2%
EPS Next 3Y9.89%
467.58
+3.5 (+0.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.92%
Inst Owner Change0.15%
Ins Owners0.18%
Ins Owner Change9%
Market Cap220.10B
Analysts76.97
Price Target507.21 (8.48%)
Short Float %1.04%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.56
Dividend Growth(5Y)9.7%
DP40.75%
Div Incr Years31
Div Non Decr Years31
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)-0.57%
PT rev (3m)-0.07%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 25.75 | ||
| P/S | 6.67 | ||
| P/FCF | 44.82 | ||
| P/OCF | 22.86 | ||
| P/B | 5.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.36 |
EPS(TTM)15.71
EY3.36%
EPS(NY)18.16
Fwd EY3.88%
FCF(TTM)10.43
FCFY2.23%
OCF(TTM)20.46
OCFY4.38%
SpS70.14
BVpS80.8
TBVpS-0.08
PEG (NY)4.35
PEG (5Y)1.85
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 | 3.91 |
F-Score7
WACC8.57%
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 Y6.85%
EPS Next 2Y8.2%
EPS Next 3Y9.89%
EPS Next 5Y8.29%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.34%
Revenue growth 5Y3.18%
Sales Q2Q%0.15%
Revenue Next Year1.09%
Revenue Next 2Y3.4%
Revenue Next 3Y4.11%
Revenue Next 5Y5.05%
EBIT growth 1Y8.72%
EBIT growth 3Y18.1%
EBIT growth 5Y21.73%
EBIT Next Year39.36%
EBIT Next 3Y16.68%
EBIT Next 5Y12.71%
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%