BUSE:LINDEPLC

Stock Analysis Report

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Executive Summary

Linde plc operates as an industrial gas company in primarily North and South America, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Linde's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LINDEPLC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

LINDEPLC

2.4%

HU Chemicals

-1.9%

HU Market


1 Year Return

0.6%

LINDEPLC

1.6%

HU Chemicals

-15.0%

HU Market

Return vs Industry: LINDEPLC underperformed the Hungarian Chemicals industry which returned 1.6% over the past year.

Return vs Market: LINDEPLC exceeded the Hungarian Market which returned -15% over the past year.


Shareholder returns

LINDEPLCIndustryMarket
7 Day0%2.4%-1.9%
30 Day0%-0.7%-5.7%
90 Dayn/a16.2%10.6%
1 Year2.5%0.6%4.5%1.6%-14.5%-15.0%
3 Yearn/a10.0%-0.2%5.7%-0.7%
5 Yearn/a23.7%5.3%72.1%53.3%

Price Volatility Vs. Market

How volatile is Linde's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Linde undervalued compared to its fair value and its price relative to the market?

51.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LINDEPLC (HUF58620) is trading above our estimate of fair value (HUF27001.47)

Significantly Below Fair Value: LINDEPLC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LINDEPLC is poor value based on its PE Ratio (51.3x) compared to the Chemicals industry average (18x).

PE vs Market: LINDEPLC is poor value based on its PE Ratio (51.3x) compared to the Hungarian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: LINDEPLC is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: LINDEPLC is overvalued based on its PB Ratio (2.6x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Linde forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LINDEPLC's forecast earnings growth (8.3% per year) is above the savings rate (1.6%).

Earnings vs Market: LINDEPLC's earnings (8.3% per year) are forecast to grow slower than the Hungarian market (18.5% per year).

High Growth Earnings: LINDEPLC's earnings are forecast to grow, but not significantly.

Revenue vs Market: LINDEPLC's revenue (5.3% per year) is forecast to grow slower than the Hungarian market (5.3% per year).

High Growth Revenue: LINDEPLC's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LINDEPLC's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Linde performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LINDEPLC has high quality earnings.

Growing Profit Margin: LINDEPLC's current net profit margins (8.3%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: LINDEPLC's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: LINDEPLC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LINDEPLC had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Chemicals industry average (-6.1%).


Return on Equity

High ROE: LINDEPLC's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Linde's financial position?


Financial Position Analysis

Short Term Liabilities: LINDEPLC's short term assets ($11.5B) do not cover its short term liabilities ($15.5B).

Long Term Liabilities: LINDEPLC's short term assets ($11.5B) do not cover its long term liabilities ($21.6B).


Debt to Equity History and Analysis

Debt Level: LINDEPLC's debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: LINDEPLC's debt to equity ratio has reduced from 168.9% to 34.8% over the past 5 years.

Debt Coverage: LINDEPLC's debt is well covered by operating cash flow (38.9%).

Interest Coverage: LINDEPLC's interest payments on its debt are well covered by EBIT (27.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Linde current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LINDEPLC's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hungarian market (2.39%).

High Dividend: LINDEPLC's dividend (1.74%) is low compared to the top 25% of dividend payers in the Hungarian market (6.98%).


Stability and Growth of Payments

Stable Dividend: LINDEPLC is not paying a notable dividend for the Hungarian market, therefore no need to check if payments are stable.

Growing Dividend: LINDEPLC is not paying a notable dividend for the Hungarian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LINDEPLC is not paying a notable dividend for the Hungarian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LINDEPLC's dividend in 3 years as they are not forecast to pay a notable one for the Hungarian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Steve Angel (64yo)

no data

Tenure

US$22,475,878

Compensation

Mr. Stephen F. Angel, also known as Steve, serves as the Chief Executive Officer of Linde plc and also has been its Director since October 22, 2018. Mr. Angel served as the CEO of Praxair Inc., an affiliat ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD22.48M) is above average for companies of similar size in the Hungarian market ($USD3.99M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Angel
CEO & Directorno dataUS$22.48m0.086% $31.4b
Matthew White
Executive VP & CFO1.75yrsUS$5.64m0.0065% $2.4b
Eduardo Menezes
Executive Vice President of EMEA1.75yrsUS$8.76m0.013% $4.9b
Sanjiv Lamba
Executive Vice President of APAC1.75yrsUS$7.46m0.0050% $1.8b
Kelcey Hoyt
Chief Accounting Officer1.75yrsno data0.00088% $321.0m
Juan Pelaez
Head of Investor Relationsno datano datano data
Guillermo Bichara
General Counselno datano datano data
Anne Roby
Executive Vice President of Global Functions1.75yrsUS$4.36m0.0063% $2.3b
Andreas Opfermann
Executive Vice President of Americas0.67yrno data0.000010% $3.6m
Juergen Nowicki
Executive VP & CEO of Linde Engineering0.25yrno data0.00020% $73.0m

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: LINDEPLC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Angel
CEO & Directorno dataUS$22.48m0.086% $31.4b
Wolfgang Reitzle
Independent Chairmanno dataUS$727.82k0.0034% $1.2b
Clemens A. Börsig
Independent Director1.75yrsUS$412.00k0.00033% $120.4m
Robert Wood
Independent Director1.75yrsUS$362.00k0.0028% $1.0b
Edward Galante
Independent Director1.75yrsUS$362.00k0.0027% $974.1m
Ann-Kristin Achleitner
Independent Director1.75yrsUS$312.00k0.00033% $120.4m
Nance Dicciani
Independent Director1.75yrsUS$327.00k0.0035% $1.3b
Thomas Enders
Independent Director1.75yrsUS$312.00k0.0021% $747.9m
Martin Richenhagen
Independent Director1.75yrsUS$312.00k0.00093% $339.3m
Larry McVay
Independent Director1.75yrsUS$313.00k0.0023% $846.4m

1.8yrs

Average Tenure

68yo

Average Age

Experienced Board: LINDEPLC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Linde plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Linde plc
  • Ticker: LINDEPLC
  • Exchange: BUSE
  • Founded: 2017
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: US$116.203b
  • Listing Market Cap: US$36.483t
  • Shares outstanding: 525.19m
  • Website: https://www.linde.com

Number of Employees


Location

  • Linde plc
  • The Priestley Centre
  • 10 Priestley Road
  • Guildford
  • Surrey
  • GU2 7XY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LINNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDJun 1992
LINDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1992
LIN-UETLX (Eurotlx)YesOrdinary SharesITEURJun 1992
LINXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 1992
LINSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 1992
LIN NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1992
LINIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1992
0M2BLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1992
LINDEPLCBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFJun 1992
L1IN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Linde plc operates as an industrial gas company in primarily North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It manufactures and distributes atmospheric gases, such as oxygen, nitrogen, argon, and rare gases; and process gases, including carbon dioxide, helium, hydrogen, carbon monoxide, electronic gases, specialty gases, and acetylene. The company also designs and manufactures equipment for air separation and other industrial gas applications, as well as gas production and processing services, such as olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants, and other types of plants. It serves healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, electronics, and water treatment industries. Linde plc was founded in 2017 and is based in Guildford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 21:12
End of Day Share Price2020/04/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.