NYSE:LIN

Stock Analysis Report

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

Fundamentals

Excellent balance sheet with proven track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

LIN

1.8%

US Chemicals

0.3%

US Market


1 Year Return

28.9%

LIN

-1.9%

US Chemicals

12.5%

US Market

Return vs Industry: LIN exceeded the US Chemicals industry which returned -1.9% over the past year.

Return vs Market: LIN exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

LINIndustryMarket
7 Day1.0%1.8%0.3%
30 Day4.1%6.4%4.1%
90 Day9.0%9.2%5.6%
1 Year31.5%28.9%13.3%-1.9%15.0%12.5%
3 Year84.5%72.8%44.8%17.9%49.1%39.4%
5 Year77.6%58.2%46.4%13.4%62.8%44.7%

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?

21.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIN ($202.29) is trading above our estimate of fair value ($111.01)

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 (21.7x) compared to the Chemicals industry average (20.3x).

PE vs Market: LIN is poor value based on its PE Ratio (21.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: LIN is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: LIN is good value based on its PB Ratio (2.2x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Linde forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIN's forecast earnings growth (3.3% per year) is above the savings rate (2.7%).

Earnings vs Market: LIN's earnings (3.3% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: LIN's revenue (5.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LIN's revenue (5.6% 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 (8.5%).


Next Steps

Past Performance

How has Linde performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIN has large one-off items impacting its financial results.

Growing Profit Margin: LIN's current net profit margins (18.6%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: LIN's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: LIN's earnings growth over the past year (207%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: LIN earnings growth over the past year (207%) exceeded the Chemicals industry -18.8%.


Return on Equity

High ROE: LIN's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Linde's financial position?


Financial Position Analysis

Short Term Liabilities: LIN's short term assets ($10.7B) exceeds its short term liabilities ($10.5B)

Long Term Liabilities: LIN's short term assets (10.7B) do not cover its long term liabilities (23.8B)


Debt to Equity History and Analysis

Debt Level: LIN's debt to equity ratio (26.1%) is considered satisfactory

Reducing Debt: LIN's debt to equity ratio has reduced from 122.3% to 26.1% over the past 5 years.

Debt Coverage: LIN's debt is well covered by operating cash flow (31.6%).

Interest Coverage: LIN's interest payments on its debt are well covered by EBIT (23x coverage).


Balance Sheet

Inventory Level: LIN has a high level of physical assets or inventory.

Debt Coverage by Assets: LIN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Linde before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: LIN's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: LIN's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 reasonably low payout ratio (36.4%), LIN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LIN's dividends in 3 years are forecast to be well covered by earnings (44.9% payout ratio).


Next Steps

Management

What is the CEO of Linde's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Steve Angel (63yo)

0yrs

Tenure

US$21,969,670

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 ($USD0.00) is below average for companies of similar size in the US market ($USD11.12M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Management: LIN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

67yo

Average Age

Experienced Board: LIN's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$3,586,91121 May 19
Eduardo Menezes
EntityIndividual
Role
Senior Key Executive
Executive Vice President of EMEA
Shares19,056
Max PriceUS$188.23
BuyUS$340,49917 May 19
Sanjiv Lamba
EntityIndividual
Role
Senior Key Executive
Executive Vice President of APAC
Shares1,900
Max PriceUS$179.21
BuyUS$268,09817 May 19
Bernd Eulitz
EntityIndividual
Shares1,496
Max PriceUS$179.21
BuyUS$264,15617 May 19
Christian Bruch
EntityIndividual
Role
Senior Key Executive
Executive VP & CEO of Linde Engineering
Shares1,474
Max PriceUS$179.21
BuyUS$1,136,25627 Mar 19
Thomas Enders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,600
Max PriceUS$172.16
SellUS$1,278,50805 Feb 19
Matthew White
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,749
Max PriceUS$164.99
SellUS$284,46321 Dec 18
Robert Wood
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$158.03
SellUS$570,22603 Dec 18
Eduardo Menezes
EntityIndividual
Role
Senior Key Executive
Executive Vice President of EMEA
Shares3,852.39
Max PriceUS$148.02
SellUS$988,26030 Nov 18
Eduardo Menezes
EntityIndividual
Role
Senior Key Executive
Executive Vice President of EMEA
Shares6,335
Max PriceUS$156.00
BuyUS$108,44826 Nov 18
Christian Bruch
EntityIndividual
Role
Senior Key Executive
Executive VP & CEO of Linde Engineering
Shares693
Max PriceUS$156.49

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 59.7%.


Management Team

  • Steve Angel (63yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: US$21.97m
  • Sanjiv Lamba (55yo)

    Executive Vice President of APAC

    • Tenure: 1.1yrs
  • Anne Roby (54yo)

    Executive Vice President of Global Functions

    • Tenure: 0yrs
    • Compensation: US$4.36m
  • Eduardo Menezes (56yo)

    Executive Vice President of EMEA

    • Tenure: 0yrs
    • Compensation: US$6.52m
  • Andreas Opfermann

    Executive Vice President of Americas

    • Tenure: 0yrs
  • Matt White (47yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$3.69m
  • Kelcey Hoyt (49yo)

    Chief Accounting Officer

    • Tenure: 1.1yrs
  • Christian Bruch (49yo)

    Executive VP & CEO of Linde Engineering

    • Tenure: 1.1yrs
  • Juan Pelaez

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Wolfgang Reitzle (70yo)

    Chairman

    • Tenure: 0yrs
  • Clemens A. Börsig (71yo)

    Independent Director

    • Tenure: 1.1yrs
  • Bob Wood (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$324.22k
  • Steve Angel (63yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: US$21.97m
  • Edward Galante (68yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$284.22k
  • Ann-Kristin Achleitner (53yo)

    Independent Director

    • Tenure: 1.1yrs
  • Nance Dicciani (71yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$299.22k
  • Tom Enders (61yo)

    Independent Director

    • Tenure: 1.1yrs
  • Martin Richenhagen (66yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$269.22k
  • Larry McVay (71yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$299.22k

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$108.946b
  • Shares outstanding: 538.56m
  • 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
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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 00:40
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.