Linde plc
Linde plc Fundamental Analysis
Linde plc (LIN) shows moderate financial fundamentals with a PE ratio of 33.44, profit margin of 20.42%, and ROE of 18.10%. The company generates $34.0B in annual revenue with weak year-over-year growth of 0.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LIN's fundamental strength across five key dimensions:
Efficiency Score
WeakLIN struggles to generate sufficient returns from assets.
Valuation Score
ModerateLIN shows balanced valuation metrics.
Growth Score
WeakLIN faces weak or negative growth trends.
Financial Health Score
ModerateLIN shows balanced financial health with some risks.
Profitability Score
ExcellentLIN achieves industry-leading margins.
Key Financial Metrics
Is LIN Expensive or Cheap?
P/E Ratio
LIN trades at 33.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LIN's PEG of -15.66 indicates potential undervaluation.
Price to Book
The market values Linde plc at 6.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.38 times EBITDA. This signals the market has high growth expectations.
How Well Does LIN Make Money?
Net Profit Margin
For every $100 in sales, Linde plc keeps $20.42 as profit after all expenses.
Operating Margin
Core operations generate 26.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.10 in profit for every $100 of shareholder equity.
ROA
Linde plc generates $7.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Linde plc generates strong operating cash flow of $10.37B, reflecting robust business health.
Free Cash Flow
Linde plc generates strong free cash flow of $5.10B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.91 in free cash annually.
FCF Yield
LIN converts 2.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How LIN Stacks Against Its Sector Peers
| Metric | LIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.44 | 27.41 | Worse (Expensive) |
| ROE | 18.10% | 859.00% | Weak |
| Net Margin | 20.42% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.71 | 0.51 | Weak (High Leverage) |
| Current Ratio | 0.88 | 4.80 | Weak Liquidity |
| ROA | 7.99% | -3590.00% (disorted) | Weak |
LIN outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Linde plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.14%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
224.71%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
72.10%
Industry Style: Cyclical, Commodity, Value
High Growth