Linde (LIN) AI Stock Analysis

• Market Cap: $224.42B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.52
• Revenue Growth: 0.78%
• EPS Growth: 6.75%
• Country: US
• Employees: 65,069
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 3.95
• Shares Outstanding: 470,724,460
• 10 Day Avg. Volume: 1,982,375
• 30 Day Avg. Volume: 1,945,383
• PEG Ratio: 3.23
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.64
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 9.02
• Enterprise Value/Ebitda: 2.54
• 1Y Price Target: $506.45
• Price Target Upside: 6.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $534.00 ▲(11.91%Upside)

Linde's strong financial performance, highlighted by solid profitability and effective cost management, is the primary driver of the score. The company's technical analysis suggests a positive trend with some caution, while the valuation indicates potential overvaluation. The earnings call underscores robust EPS growth and a strong backlog, but external market challenges remain a concern.

Positive Factors

Market Share

LIN expects to grow its market share by being able to quickly replicate its existing solution set across projects.

Project Wins

LIN's ability to customize its offerings helped it win major new low-carbon projects.

Negative Factors

Global Demand

Global industrial demand remains weak, with China showing modest growth, Europe facing declines, and the US holding flattish to down.

Macroeconomic Concerns

Management indicated that despite concerns about the macro slowing, LIN is having constructive dialog with partners looking to bring on new business.

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 sale of industrial gases and related services. Its revenue model is based on long-term contracts and direct sales to a diverse range of industries, including manufacturing, chemicals, refining, food and beverage, electronics, and healthcare. Key revenue streams include the production and distribution of atmospheric gases and process gases, as well as engineering and construction services for gas processing facilities. Significant partnerships with companies in sectors such as healthcare and clean energy also contribute to its earnings. Additionally, Linde's focus on innovation and efficiency in gas production and delivery enhances its profitability.

Linde Financial Statement Overview

Summary

Linde shows a strong financial profile with solid profitability, effective cost management, and robust cash flow generation. The company's balance sheet is well-structured, though rising debt levels require monitoring. Overall, it balances growth with financial stability.

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
EBITDA	12.59B	12.75B	12.22B	10.86B	10.14B	8.73B
Net Income	6.61B	6.57B	6.20B	4.15B	3.83B	2.50B
Balance Sheet
Total Assets	82.70B	80.15B	80.81B	79.66B	81.61B	88.23B
Cash, Cash Equivalents and Short-Term Investments	5.29B	4.85B	4.66B	5.44B	2.82B	3.75B
Total Debt	23.90B	22.61B	20.32B	17.91B	14.21B	16.15B
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: 477.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 477.17 is above the 20-day moving average (MA) of 467.30, above the 50-day MA of 459.37, and above the 200-day MA of 453.02, indicating a bullish trend. The MACD of 2.80 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 94.86 is Negative, 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
LIN	77 Outperform	$224.42B	34.60	17.20%	1.26%	0.78%	6.75%
ECL	77 Outperform	$77.29B	37.08	24.62%	0.95%	1.19%	36.31%
LYB	72 Outperform	$19.67B	18.93	7.19%	8.76%	-6.53%	-50.08%
DD	64 Neutral	$29.90B	40.24	0.06%	2.25%	4.51%	-121.68%
PPG	64 Neutral	$26.43B	19.72	18.47%	2.34%	-7.67%	-0.58%
APD	63 Neutral	$64.60B	42.19	10.45%	2.47%	-1.09%	-37.71%
Sector *	44 Neutral	C$967.22M	-6.71	-13.35%	2.72%	17.20%	-32.62%

Linde Corporate Events

Linde Raises ₣498.6 Million in Debt Issuance

On May 21, 2025, Linde plc issued ₣225 million of 0.6150% Notes due 2029 and ₣275 million of 1.0629% Notes due 2033, raising approximately ₣498.6 million. These notes were listed on the SIX Swiss Exchange and are part of Linde’s European debt issuance program, which allows for the issuance of up to €20 billion in unsecured notes. The proceeds will be used for general corporate purposes, enhancing Linde’s financial flexibility and supporting its strategic initiatives.

The most recent analyst rating on (LIN) stock is a Buy with a $525.00 price target. To see the full list of analyst forecasts on Linde stock, see the LIN Stock Forecast page.