Linde PLC (LIN) stock analysis

P/E above its 5-year median

Linde's P/E of 35.0 is above its own 5-year median of 34.5.

P/E above the industry

Linde's P/E of 35.0 is above the Chemicals and Allied Products median of 25.2.

EV/EBITDA above its 5-year median

Linde's EV/EBITDA of 20.5 is above its 5-year median of 19.3.

P/B above the industry

Linde's price-to-book of 6.13 is above the Chemicals and Allied Products median of 1.25.

Trading above fair value

The share price of $526.55 is above our fair value estimate of $417.12.

Margin of safety under 20%

The price is 26.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 21.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -1.2% over the last twelve months, against a 5-year average of 22.5% a year.

Growing slower than the industry

Revenue grew 8.2% over the last twelve months; the Chemicals and Allied Products median is 8.2%.

Guidance raised

Linde raised its Full-year capital expenditures outlook on Jul 31, 2026.

Gross margin slipping

Gross margin was 47.9% over the last twelve months, against 48.8% a year earlier.

Return on equity under 15%

Return on equity was 18.0% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Linde's return on equity of 18.0% is above the Chemicals and Allied Products median of -0.8%.

Earnings grew over 5 years

Net income grew 22.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.3% over the last twelve months, against a 5-year average of 16.8%.

Net margin above the industry

Linde's net margin of 19.3% is above the Chemicals and Allied Products median of -0.4%.

High debt

Debt is 67.7% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 34.1% five years ago to 67.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 40.1% of total debt.

Interest well covered

Operating income covers interest expense 35.5 times.

Short-term assets don't cover short-term debts

Current assets are 0.86 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.12; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Linde paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Linde yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 41.6% of net income.

Covered by free cash flow

Dividends take 57.3% of free cash flow.