Linde (LIN) AI Stock Analysis

• Market Cap: $215.48B
• Dividend Yield: 1.24%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.54
• Revenue Growth: 0.78%
• EPS Growth: 6.75%
• Country: US
• Employees: 65,069
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 3.95
• Shares Outstanding: 470,724,460
• 10 Day Avg. Volume: 1,684,566
• 30 Day Avg. Volume: 2,233,785
• PEG Ratio: 29.56
• Price to Book (P/B): 5.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.39
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 16.53
• Enterprise Value/Ebitda: 4.66
• 1Y Price Target: $497.27
• Price Target Upside: 8.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Linde's overall stock performance is strong, driven by solid financial fundamentals and effective cost management. The technical analysis suggests stability with potential for moderate growth, while valuation remains a concern due to high P/E ratios. The earnings call reveals a mixed outlook with growth opportunities balanced by macroeconomic challenges. The company's strategic capital management and shareholder returns provide a stable foundation amidst these challenges.

Positive Factors

Clean Fuels Market

LIN is seen as an obvious winner in the clean fuels arena due to its strength in carbon capture and hydrogen manufacturing and transportation.

Earnings Growth

LIN should see robust price/volumes, efficiency gains, new projects, and tailwinds from a normalized energy/power cost environment driving double-digit EPS growth.

Pricing Power

The company expects to pass-through inflation driven pricing in all regions, indicating pricing power.

Negative Factors

Currency Impact

Currency headwind is expected to have a modest quarter-over-quarter impact.

Demand Uncertainty

Management alluded to continued uncertainty around the timing of recovery in end-market demand due to macro and trade concerns.

Trade Policies Impact

Uncertainty surrounding protectionist trade policies likely slows the pace of project evaluation and scope discussions in 2025, and stalls a rebound in demand from the cyclical markets.

Linde Business Overview & Revenue Model

Company Description

Linde plc operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1879 and is based in Woking, the United Kingdom.

How the Company Makes Money

Linde makes money primarily through the production and distribution of industrial gases to a diverse range of end markets, including healthcare, manufacturing, and energy. The company operates through two main business segments: Gases and Engineering. The Gases segment generates revenue through the sale of gases and related equipment, offering on-site gas production, pipeline supply, and packaged gas. The Engineering segment designs and constructs large industrial plants, contributing to the company's revenue by leveraging its expertise in process technologies. Linde also capitalizes on long-term contracts and strategic partnerships, providing stability and growth opportunities. Additionally, the company invests in innovations like hydrogen energy solutions, which position it for future revenue expansion as global energy demands evolve.

Linde Financial Statement Overview

Summary

Linde exhibits a strong financial profile with solid profitability and effective cost management. The company's balance sheet is well-structured, though rising debt levels warrant monitoring. Cash flow generation remains strong, supporting operational flexibility.

Income Statement

Linde's income statement reflects a strong financial performance with a stable revenue base. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is approximately 55%, indicating efficient cost management. The Net Profit Margin is around 20% for TTM, showcasing solid profitability. EBIT and EBITDA margins are healthy, at 26% and 38% respectively for TTM. Revenue growth is modest but consistent, suggesting a steady business trajectory.

Balance Sheet

The balance sheet reveals a solid financial position with a Debt-to-Equity Ratio of 0.58, indicating moderate leverage. The Return on Equity (ROE) stands at 17.38% for TTM, reflecting effective use of equity capital. The Equity Ratio is approximately 46%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose potential risks if not managed effectively.

Cash Flow

Linde demonstrates robust cash flow management. The Operating Cash Flow to Net Income Ratio is 1.46 for TTM, implying strong cash conversion. The Free Cash Flow to Net Income Ratio is 0.74, indicating good free cash flow generation. However, the Free Cash Flow Growth Rate shows slight volatility, which may require attention to sustain long-term liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.02B	33.01B	32.85B	33.36B	30.79B	27.24B
	Gross Profit
14.02B	15.86B	15.36B	13.91B	13.25B	11.86B
	EBIT
8.72B	8.63B	8.02B	5.37B	4.98B	3.32B
	EBITDA
12.59B	12.75B	12.22B	10.86B	10.14B	8.73B
	Net Income Common Stockholders
6.61B	6.57B	6.20B	4.15B	3.83B	2.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.29B	4.85B	4.66B	5.44B	2.82B	3.75B
	Total Assets
82.70B	80.15B	80.81B	79.66B	81.61B	88.23B
	Total Debt
23.90B	22.61B	20.32B	17.91B	14.21B	16.15B
	Net Debt
18.60B	17.76B	15.65B	12.48B	11.38B	12.40B
	Total Liabilities
43.24B	40.66B	39.72B	38.27B	36.16B	38.65B
	Stockholders Equity
38.03B	38.09B	39.72B	40.03B	44.03B	47.32B
Cash Flow		Free Cash Flow
4.91B	4.93B	5.52B	5.69B	6.64B	4.03B
	Operating Cash Flow
9.63B	9.42B	9.30B	8.86B	9.72B	7.43B
	Investing Cash Flow
-4.97B	-4.64B	-4.67B	-3.09B	-3.01B	-2.99B
	Financing Cash Flow
-4.08B	-4.36B	-5.40B	-3.09B	-7.59B	-3.35B

Linde Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 457.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIN, the sentiment is Positive. The current price of 457.77 is above the 20-day moving average (MA) of 450.88, above the 50-day MA of 452.37, and above the 200-day MA of 452.74, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIN.

Linde Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECL	77 Outperform	$73.46B	35.24	24.62%	0.94%	1.19%	36.31%
LIN	76 Outperform	$215.48B	33.22	17.20%	1.24%	0.78%	6.75%
LYB	66 Neutral	$19.21B	18.48	7.19%	8.97%	-6.53%	-50.08%
DD	65 Neutral	$29.01B	40.24	0.06%	2.24%	4.51%	-121.68%
PPG	63 Neutral	$25.90B	19.32	18.47%	2.36%	-7.67%	-0.58%
APD	59 Neutral	$62.07B	40.54	10.45%	2.54%	-1.09%	-37.71%
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.61%

Linde Corporate Events

Linde Announces Retirement of Executive John Panikar

John Panikar, former Executive Vice President-APAC at Linde plc, will retire on March 31, 2025, after 33 years of service. During his transition, he will maintain his salary and benefits while being eligible for a performance-based bonus. Post-retirement, Panikar will receive a severance package exceeding $1.4 million, along with COBRA health benefits. He will also adhere to non-disclosure and non-compete agreements, reflecting Linde’s structured approach to leadership transitions.