LINDE PLC (LIN)

IE000S9YS762 - Common Stock

436.03  +4.4 (+1.02%)

Fundamental Rating

5

Overall LIN gets a fundamental rating of 5 out of 10. We evaluated LIN against 85 industry peers in the Chemicals industry. While LIN has a great profitability rating, 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.



8

1. Profitability

1.1 Basic Checks

In the past year LIN was profitable.
In the past year LIN had a positive cash flow from operations.
LIN had positive earnings in each of the past 5 years.
In the past 5 years LIN always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of LIN (7.67%) is better than 80.00% of its industry peers.
The Return On Equity of LIN (15.61%) is better than 72.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.75%, LIN is in the better half of the industry, outperforming 72.94% 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 7.57%.
The last Return On Invested Capital (8.75%) for LIN is above the 3 year average (7.26%), which is a sign of increasing profitability.
Industry RankSector 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

With an excellent Profit Margin value of 18.87%, LIN belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
In the last couple of years the Profit Margin of LIN has declined.
The Operating Margin of LIN (24.54%) is better than 90.59% 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 90.59% of its industry peers.
LIN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

6

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.
The debt/assets ratio for LIN is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.90 indicates that LIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of LIN (3.90) is better than 85.88% 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.
Looking at the Debt to FCF ratio, with a value of 3.51, LIN is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that LIN is not too dependend on debt financing.
The Debt to Equity ratio of LIN (0.46) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 3.51
Altman-Z 3.9
ROIC/WACC1.08
WACC8.11%

2.3 Liquidity

LIN has a Current 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 Current ratio of 0.80 is on the low side compared to the rest of the industry. LIN is outperformed by 94.12% of its industry peers.
A Quick Ratio of 0.67 indicates that LIN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, LIN is doing worse than 90.59% of the companies in the same industry.
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 RankSector Rank
Current Ratio 0.8
Quick Ratio 0.67

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.62% over the past year.
Measured over the past years, LIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.48% on average per year.
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

LIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
Based on estimates for the next years, LIN will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
EPS Next Y6.52%
EPS Next 2Y10.85%
EPS Next 3Y9.53%
EPS Next 5Y9.24%
Revenue Next Year5.62%
Revenue Next 2Y3.4%
Revenue Next 3Y3.55%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.68, the valuation of LIN can be described as expensive.
LIN's Price/Earnings ratio is a bit more expensive when compared to the industry. LIN is more expensive than 61.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of LIN to the average of the S&P500 Index (26.18), we can say LIN is valued inline with the index average.
A Price/Forward Earnings ratio of 29.28 indicates a quite expensive valuation of LIN.
Based on the Price/Forward Earnings ratio, LIN is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
LIN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.68
Fwd PE 29.28

4.2 Price Multiples

69.41% of the companies in the same industry are cheaper than LIN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LIN.
Industry RankSector Rank
P/FCF 38.32
EV/EBITDA 18.46

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)4.71
PEG (5Y)1.86
EPS Next 2Y10.85%
EPS Next 3Y9.53%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.19%, LIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, LIN has a dividend in line with its industry peers.
With a Dividend Yield of 1.19, LIN pays less dividend than the S&P500 average, which is at 2.48.
Industry RankSector Rank
Dividend Yield 1.19%

5.2 History

The dividend of LIN is nicely growing with an annual growth rate of 12.68%!
LIN has paid a dividend for less than 5 years, so there is no long track record yet.
LIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.68%
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 2Y10.85%
EPS Next 3Y9.53%

LINDE PLC

NASDAQ:LIN (2/20/2024, 9:50:05 AM)

436.03

+4.4 (+1.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap211.43B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.19%
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
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 RankSector Rank
PE 30.68
Fwd PE 29.28
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)4.71
PEG (5Y)1.86
Profitability
Industry RankSector 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 RankSector 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