Linde (LIN) AI Stock Analysis

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Linde

(NASDAQ:LIN)

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Neutral 66 (OpenAI - 4o)

Rating:66Neutral

Price Target:

$452.00

▲(6.33% Upside)

Linde's overall stock score reflects strong financial performance and a positive earnings call, highlighting growth in EPS and a robust backlog. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. Macroeconomic challenges, particularly in Europe, also weigh on the score.

Positive Factors

Strong Cash Flow Generation

Linde's robust cash flow generation supports ongoing investments and shareholder returns, enhancing long-term financial stability.

Resilient Backlog

A strong backlog ensures future revenue streams and supports sustained growth, providing visibility into long-term earnings potential.

Electronics Segment Growth

Growth in the electronics segment indicates successful market penetration and aligns with increasing demand for advanced technologies.

Negative Factors

Challenging Macroeconomic Environment

Macroeconomic challenges, particularly in Europe, could hinder growth and profitability, impacting Linde's market performance.

European Industrial Activity Weakness

Weak industrial demand in Europe could limit revenue growth and strain Linde's operations in the region, affecting overall performance.

Volume Challenges in Industrial End Markets

Flat volumes in key markets suggest potential stagnation, which could pressure margins and slow revenue growth if not addressed.

Linde (LIN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$197.76B

Dividend Yield1.41%

Average Volume (3M)3.14M

Price to Earnings (P/E)28.5

Beta (1Y)0.41

Revenue Growth1.45%

EPS Growth13.21%

CountryUS

Employees65,069

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)4.21

Shares Outstanding466,948,940

10 Day Avg. Volume4,420,983

30 Day Avg. Volume3,137,705

Financial Highlights & Ratios

PEG Ratio3.84

Price to Book (P/B)5.26

Price to Sales (P/S)6.07

P/FCF Ratio40.69

Enterprise Value/Market Cap1.25

Enterprise Value/Revenue7.37

Enterprise Value/Gross Profit18.21

Enterprise Value/Ebitda18.57

Forecast

1Y Price Target

$499.07

Price Target Upside17.40% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering17

EPS Forecast (FY)16.43

Revenue Forecast (FY)$33.87B

Linde Business Overview & Revenue Model

Company DescriptionLinde plc is a global leader in industrial gases and engineering, providing a wide range of products and services across various sectors, including healthcare, manufacturing, food and beverage, and energy. The company operates through two main segments: Gases and Engineering. Linde's core offerings include atmospheric gases (such as oxygen, nitrogen, and argon), process gases (like hydrogen and carbon dioxide), and specialty gases, alongside advanced engineering solutions for gas applications.

How the Company Makes MoneyLinde generates revenue primarily through the sale of industrial gases and related services. Its revenue model is diversified across several key streams: the sale of gases in bulk, packaged gases, and on-site gas supply, where Linde operates facilities directly at customer locations. A significant portion of Linde's earnings also comes from long-term contracts with customers in industries like healthcare and energy, ensuring stable and recurring revenue. Additionally, Linde's engineering segment contributes to its earnings through the design and construction of gas processing plants and related infrastructure. Strategic partnerships and collaborations with various industries enhance Linde's market reach and operational efficiency, further bolstering its financial performance.

Linde Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Breaks down revenue across different business units, revealing which segments are performing well and contributing most to the company’s top line.

Chart InsightsLinde's revenue from the Americas segment shows robust growth, driven by a strong project backlog in the U.S. targeting electronics and clean energy markets. However, EMEA faces challenges with declining volumes and soft demand, impacting overall performance. APAC is affected by helium pricing pressures, despite positive pricing trends elsewhere. The company remains optimistic with record EPS and operating margins, projecting further EPS growth despite economic uncertainties. Strategic investments in the U.S. space industry and a focus on network density and small on-site projects are expected to support future growth.

Data provided by:

The Fly

Linde Earnings Call Summary

Earnings Call Date:Oct 31, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there were significant highlights such as EPS, cash flow growth, and a strong backlog, these were tempered by ongoing challenges in the macroeconomic environment, particularly in Europe and the chemicals sector. The electronics and manufacturing segments showed strong performance, but industrial volumes remained flat.

Q3-2025 Updates

Positive Updates

EPS and Cash Flow Growth

Earnings per share (EPS) grew by 7% to $4.21. Operating cash flow increased by 8%, generating $1.7 billion of free cash flow.

Resilient Backlog

The backlog remains strong at $10 billion, securing long-term EPS growth and increasing network density.

Electronics Segment Growth

Electronics sales grew by 9%, driven by high-end chip production in Korea, Taiwan, and the U.S., with additional growth from Taiwan through a non-consolidated joint venture.

Record Backlog in Sale of Gas

Sale of gas backlog is at a record level, with expectations to maintain a '7 handle' by the end of the year despite starting up $1 billion in projects.

Strong Performance in Manufacturing

Manufacturing grew by 3% year-on-year, with solid volume growth in the United States and strong momentum in the commercial space business.

Negative Updates

Challenging Macroeconomic Environment

Despite positive metrics, the macroeconomic environment remains challenging, affecting industrial end markets.

European Industrial Activity Weakness

Europe faces broad-based demand challenges, with continued softness in manufacturing activity and weak industrial demand.

Chemicals and Energy Sector Challenges

Chemicals and energy sectors are up by only 1%, driven by inflationary price increases, while base volumes are down.

Helium and Rare Gases Price Pressure

Helium and rare gases are experiencing price pressure from excess supply, affecting overall pricing, especially in APAC.

Volume Challenges in Industrial End Markets

Overall volumes were flat, with weaker base volumes driven primarily by European industrial customers.

Company Guidance

During Linde's third-quarter 2025 earnings call, the company reported a 7% increase in EPS to $4.21 and an 8% growth in operating cash flow, generating $1.7 billion in free cash flow. The backlog remains strong at $10 billion, ensuring long-term EPS growth. The company experienced a 3% year-over-year sales increase to $8.6 billion, driven by a 2% price increase aligned with global inflation trends. Electronics was the fastest-growing end market, contributing 9% of sales. Linde's fourth-quarter EPS guidance is set at $4.10 to $4.20, indicating 3% to 6% growth, while full-year guidance is projected at $16.35 to $16.45, reflecting a 5% to 6% increase. Despite macroeconomic challenges, Linde continues to focus on productivity, efficiency, and disciplined capital management to generate shareholder value.

Linde Financial Statement Overview

Summary

Linde exhibits strong financial health with robust profitability, efficient operations, and a stable balance sheet. The company has shown consistent revenue and profit growth, supported by effective cost management. While debt levels have increased, they remain manageable, and cash flow generation is strong, supporting future growth and investment opportunities.

Income Statement

Very Positive

Linde's income statement shows strong profitability with a consistent increase in net profit margins, reaching 21.17% in TTM. The company has demonstrated robust revenue growth, particularly in the latest period with a 7.79% increase. Gross profit margins have slightly decreased over time, but EBIT and EBITDA margins remain healthy, indicating efficient cost management and operational performance.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.61 in TTM. Return on equity has improved to 18.51%, showcasing effective use of equity to generate profits. The equity ratio indicates a solid equity base, although the increasing debt levels warrant monitoring.

Cash Flow

Positive

Linde's cash flow statement highlights a positive trend in free cash flow growth, with a 13.8% increase in TTM. The operating cash flow to net income ratio is strong at 0.63, suggesting good cash generation relative to net income. The free cash flow to net income ratio remains healthy, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.50B	33.01B	32.85B	33.36B	30.79B	27.24B
Gross Profit	13.56B	12.08B	11.55B	9.71B	8.62B	7.23B
EBITDA	13.29B	12.92B	12.29B	9.94B	9.89B	8.12B
Net Income	7.09B	6.57B	6.20B	4.15B	3.83B	2.50B
Balance Sheet
Total Assets	85.99B	80.15B	80.81B	79.66B	81.61B	88.23B
Cash, Cash Equivalents and Short-Term Investments	4.51B	4.85B	4.66B	5.44B	2.82B	3.75B
Total Debt	25.93B	22.61B	20.32B	18.79B	15.22B	17.22B
Total Liabilities	45.91B	40.66B	39.72B	38.27B	36.16B	38.65B
Stockholders Equity	38.62B	38.09B	39.72B	40.03B	44.03B	47.32B
Cash Flow
Free Cash Flow	5.08B	4.93B	5.52B	5.69B	6.64B	4.03B
Operating Cash Flow	10.13B	9.42B	9.30B	8.86B	9.72B	7.43B
Investing Cash Flow	-5.64B	-4.64B	-4.67B	-3.09B	-3.01B	-2.99B
Financing Cash Flow	-5.15B	-4.36B	-5.40B	-3.09B	-7.59B	-3.35B

Linde Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price425.10

Price Trends

50DMA

421.04

Positive

100DMA

446.32

Negative

200DMA

450.93

Negative

Market Momentum

MACD

1.04

Negative

RSI

59.61

Neutral

STOCH

95.25

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIN, the sentiment is Neutral. The current price of 425.1 is above the 20-day moving average (MA) of 409.54, above the 50-day MA of 421.04, and below the 200-day MA of 450.93, indicating a neutral trend. The MACD of 1.04 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 95.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LIN.

Linde Risk Analysis

Linde disclosed 17 risk factors in its most recent earnings report. Linde reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Linde Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPG	67 Neutral	$23.20B	18.32	16.31%	2.69%	-12.98%	-11.34%
ECL	66 Neutral	$75.73B	38.08	21.73%	1.01%	1.38%	-2.54%
LIN	66 Neutral	$197.76B	28.46	18.24%	1.41%	1.45%	13.21%
SHW	66 Neutral	$80.28B	31.64	59.94%	0.98%	0.96%	1.96%
DD	62 Neutral	$17.38B	-22.27	-0.46%	1.72%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APD	46 Neutral	$54.49B	-138.03	-2.41%	2.92%	-0.52%	-110.29%

* Basic Materials Sector Average

Performance Comparison

LIN

Linde

425.10

4.99

1.19%

APD

Air Products and Chemicals

244.77

-43.89

-15.20%

ECL

Ecolab

264.74

26.45

11.10%

PPG

PPG Industries

102.67

-15.19

-12.89%

SHW

Sherwin-Williams Company

324.05

-19.41

-5.65%

DuPont de Nemours

41.04

9.41

29.75%

Linde Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Linde Enters 364-Day Credit Agreement with Bank

Neutral

Dec 3, 2025

On December 3, 2025, Linde plc entered into a 364-Day Credit Agreement with Bank of America, N.A., involving subsidiary borrowers and guarantors. This agreement is a significant financial move for Linde, potentially impacting its financial flexibility and operational strategy.

Private Placements and FinancingBusiness Operations and Strategy

Linde Issues €1.75 Billion in European Notes

Neutral

Nov 20, 2025

On November 20, 2025, Linde plc issued three sets of notes totaling €1.75 billion, under its European debt issuance program. These notes, which include floating rate and fixed rate notes with varying maturities, are listed on the Luxembourg Stock Exchange and will be used for general corporate purposes. The issuance highlights Linde’s strategic financial management and its continued use of the European debt market to support its operations.

Executive/Board Changes

Linde Appoints New COO Amid Leadership Changes

Neutral

Sep 29, 2025

On September 29, 2025, Linde announced the retirement of Stephen F. Angel from the Board of Directors, effective January 31, 2026, with CEO Sanjiv Lamba set to assume the role of Chairman. Additionally, Sean Durbin was appointed as Chief Operating Officer, effective October 1, 2025, bringing extensive experience from his previous roles within the company.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 03, 2025