NYSE:LIN

Stock Analysis Report

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Market Cap

US$154.7b

Last Updated

2021/07/30 01:15 UTC

Data Sources

Company Financials +

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

Solid track record with adequate balance sheet and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LIN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

LIN

2.1%

US Chemicals

0.8%

US Market


1 Year Return

23.7%

LIN

34.5%

US Chemicals

37.5%

US Market

Return vs Industry: LIN underperformed the US Chemicals industry which returned 30.5% over the past year.

Return vs Market: LIN underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

LINIndustryMarket
7 Day1.4%2.1%0.8%
30 Day3.1%1.0%1.0%
90 Day4.8%-0.5%3.8%
1 Year25.6%23.7%37.1%34.5%39.7%37.5%
3 Year92.8%82.7%42.8%21.6%64.4%54.1%
5 Year183.8%156.7%97.9%59.2%124.9%100.0%

Long-Term 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

Valuation

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

54.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIN ($299.45) is trading above our estimate of fair value ($224.98)

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 (54.1x) compared to the US Chemicals industry average (25x).

PE vs Market: LIN is poor value based on its PE Ratio (54.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: LIN is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: LIN is overvalued based on its PB Ratio (3.4x) compared to the US Chemicals industry average (2.9x).


Future Growth

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

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIN's forecast earnings growth (9.1% per year) is above the savings rate (2%).

Earnings vs Market: LIN's earnings (9.1% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: LIN's revenue (5.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: LIN's revenue (5.7% 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 (13.2%).


Past Performance

How has Linde performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIN has high quality earnings.

Growing Profit Margin: LIN's current net profit margins (10.5%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: LIN's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: LIN's earnings growth over the past year (25.3%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: LIN earnings growth over the past year (25.3%) exceeded the Chemicals industry 23%.


Return on Equity

High ROE: LIN's Return on Equity (6.4%) is considered low.


Financial Health

How is Linde's financial position?


Financial Position Analysis

Short Term Liabilities: LIN's short term assets ($11.1B) do not cover its short term liabilities ($15.0B).

Long Term Liabilities: LIN's short term assets ($11.1B) do not cover its long term liabilities ($22.3B).


Debt to Equity History and Analysis

Debt Level: LIN's debt to equity ratio (30.8%) is considered satisfactory.

Reducing Debt: LIN's debt to equity ratio has reduced from 173.4% to 30.8% over the past 5 years.

Debt Coverage: LIN's debt is well covered by operating cash flow (55.8%).

Interest Coverage: LIN's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet


Dividend

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

1.42%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 30 2021Ex Dividend DateSep 02 2021Dividend Pay DateSep 17 202115 days from Ex DividendBuy in the next 33 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LIN's dividend (1.42%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: LIN's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.52%).


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: With its reasonable payout ratio (71.3%), LIN's dividend 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 (41.8% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Steve Angel (65 yo)

2.75yrs

Tenure

US$18,556,901

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD18.56M) is above average for companies of similar size in the US market ($USD11.27M).

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


Leadership Team

Experienced Management: LIN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: LIN's board of directors are not considered experienced ( 2.8 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: LIN
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: US$154.652b
  • Shares outstanding: 516.45m
  • Website: https://www.linde.com

Number of Employees


Location

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

Listings


Biography

Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers oxygen, nitrogen, argon, rare gases, carbon dioxide, hydrogen, h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 01:15
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.