The Most Important Facts About Linde

Linde logged a -0.7% change during today's morning session, and is now trading at a price of $367.19 per share.

Linde returned gains of 35.0% last year, with its stock price reaching a high of $393.67 and a low of $266.22. Over the same period, the stock outperformed the S&P 500 index by 18.0%. More recently, the company's 50-day average price was $381.17. Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. Based in Woking, United Kingdom, the large-cap Industrials company has 66,270 full time employees. Linde has offered a 1.3% dividend yield over the last 12 months.

Shareholders Are Confronted With a Declining EPS Growth Trend:

2019-02-09 2020-03-02 2021-03-01 2022-02-28 2023-02-28
Revenue (MM) $14,836 $28,228 $27,243 $30,793 $33,364
Gross Margins 39.0% 41.0% 44.0% 43.0% 42.0%
Operating Margins 15% 12% 12% 16% 16%
Net Margins 30.0% 8.0% 9.0% 12.0% 12.0%
Net Income (MM) $4,381 $2,285 $2,501 $3,826 $4,147
Net Interest Expense (MM) -$202 -$38 -$115 -$77 -$63
Depreciation & Amort. (MM) -$1,830 -$4,675 -$4,626 -$4,635 -$4,204
Earnings Per Share $13.11 $4.19 $4.71 $7.36 $7.95
EPS Growth n/a -68.04% 12.41% 56.26% 8.02%
Diluted Shares (MM) 334 545 531 520 522
Free Cash Flow (MM) $5,537 $9,801 $10,829 $12,811 $12,037
Capital Expenditures (MM) -$1,883 -$3,682 -$3,400 -$3,086 -$3,173
Net Current Assets (MM) -$19,018 -$24,625 -$27,723 -$26,005 -$25,224
Long Term Debt (MM) $12,288 $10,693 $12,152 $11,335 $12,198
Net Debt / EBITDA 2.66 1.42 1.55 1.18 1.3

Linde has wider gross margins than its peer group, average operating margins with a stable trend, and healthy leverage. However, the firm has declining EPS growth. Finally, we note that Linde has weak revenue growth and a flat capital expenditure trend and irregular cash flows.

Linde's Valuation Is in Line With Its Sector Averages:

Linde has a trailing twelve month P/E ratio of 32.8, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $15.28, the company has a forward P/E ratio of 24.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 5 years of reported EPS is -2.4%. On this basis, the company's PEG ratio is -13.76, which indicates that its shares are overpriced. Furthermore, Linde is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.49 is higher than the sector average of 3.78. The company's shares are currently trading 208.3% above their Graham number.

Linde Has an Average Rating of Buy:

The 26 analysts following Linde have set target prices ranging from $339.0 to $454.78 per share, for an average of $423.59 with a buy rating. As of April 2023, the company is trading -10.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Linde has a very low short interest because 0.5% of the company's shares are sold short. Institutions own 86.5% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $16,139,477,404.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.