NYSE:LIN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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: LIN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

LIN

-1.2%

US Chemicals

-1.4%

US Market


1 Year Return

19.2%

LIN

9.1%

US Chemicals

17.8%

US Market

Return vs Industry: LIN exceeded the US Chemicals industry which returned 10.5% over the past year.

Return vs Market: LIN matched the US Market which returned 18.5% over the past year.


Shareholder returns

LINIndustryMarket
7 Day-1.7%-1.2%-1.4%
30 Day-3.2%2.7%4.7%
90 Day-6.1%4.9%8.2%
1 Year21.3%19.2%11.6%9.1%20.5%17.8%
3 Year70.4%60.8%14.4%-7.2%42.2%32.7%
5 Year134.4%110.1%62.0%24.6%83.4%62.7%

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?

54.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIN ($230.91) is trading above our estimate of fair value ($163.12)

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


Price To Earnings Ratio

PE vs Industry: LIN is poor value based on its PE Ratio (54.4x) compared to the US Chemicals industry average (27.6x).

PE vs Market: LIN is poor value based on its PE Ratio (54.4x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: LIN is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: LIN is overvalued based on its PB Ratio (2.7x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Linde forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIN's forecast earnings growth (15.4% per year) is above the savings rate (2.2%).

Earnings vs Market: LIN's earnings (15.4% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: LIN's revenue (5.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: LIN's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIN's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Linde performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIN has high quality earnings.

Growing Profit Margin: LIN's current net profit margins (8.3%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: LIN's earnings have grown significantly by 20% per year over the past 5 years.

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

Earnings vs Industry: LIN had negative earnings growth (-47.1%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).


Return on Equity

High ROE: LIN's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is Linde's financial position?


Financial Position Analysis

Short Term Liabilities: LIN's short term assets ($12.1B) do not cover its short term liabilities ($15.1B).

Long Term Liabilities: LIN's short term assets ($12.1B) do not cover its long term liabilities ($22.8B).


Debt to Equity History and Analysis

Debt Level: LIN's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: LIN's debt to equity ratio has reduced from 169.9% to 35.6% over the past 5 years.

Debt Coverage: LIN's debt is well covered by operating cash flow (42%).

Interest Coverage: LIN's interest payments on its debt are well covered by EBIT (25.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIN's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: LIN's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: LIN's dividend payments have been volatile in the past 10 years.

Growing Dividend: LIN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.6%), LIN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LIN's dividends in 3 years are forecast to be well covered by earnings (41.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Steve Angel (64 yo)

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 ($USD22.48M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Angel
CEO & Directorno dataUS$22.48m0.069%
$ 83.7m
Matthew White
Executive VP & CFO2yrsUS$5.64m0.0065%
$ 7.8m
Eduardo Menezes
Executive Vice President of EMEA2yrsUS$8.76m0.013%
$ 16.2m
Sanjiv Lamba
Executive Vice President of APAC2yrsUS$7.46m0.0050%
$ 6.1m
Kelcey Hoyt
Chief Accounting Officer2yrsno data0.00088%
$ 1.1m
Juan Pelaez
Head of Investor Relationsno datano datano data
Guillermo Bichara
General Counselno datano datano data
Andreas Opfermann
Executive Vice President of Americas0.92yrno data0.000090%
$ 108.9k
Juergen Nowicki
Executive VP & CEO of Linde Engineering0.50yrno data0.00035%
$ 423.7k

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: LIN's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Angel
CEO & Directorno dataUS$22.48m0.069%
$ 83.7m
Wolfgang Reitzle
Independent Chairmanno dataUS$727.82k0.0034%
$ 4.1m
Clemens A. Boersig
Independent Director2yrsUS$412.00k0.00033%
$ 399.4k
Robert Wood
Independent Director2yrsUS$362.00k0.0028%
$ 3.4m
Edward Galante
Independent Director2yrsUS$362.00k0.0027%
$ 3.2m
Ann-Kristin Achleitner
Independent Director2yrsUS$312.00k0.00033%
$ 399.4k
Nance Dicciani
Independent Director2yrsUS$327.00k0.0035%
$ 4.3m
Franz Fehrenbach
Independent Director2yrsUS$312.00k0.00033%
$ 399.4k
Thomas Enders
Independent Director2yrsUS$312.00k0.0021%
$ 2.5m
Martin Richenhagen
Independent Director2yrsUS$312.00k0.00093%
$ 1.1m
Larry McVay
Independent Director2yrsUS$313.00k0.0023%
$ 2.8m
Victoria Ossadnik
Independent Director2yrsUS$312.00k0.00015%
$ 181.6k

2.0yrs

Average Tenure

68yo

Average Age

Experienced Board: LIN's board of directors are not considered experienced ( 2 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: LIN
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: US$121.044b
  • Shares outstanding: 524.20m
  • 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
LINDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 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 North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company offers oxygen, nitrogen, argon, rare gases, carbon monoxide, c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:31
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.