LINDE PLC (LIN) Stock Analysis
LINDE PLC (LIN) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
LINDE PLC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.8% | Near cost of capital |
| FCF Margin | 15.0% | Healthy cash flow |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 15.0% provides financial flexibility for growth and shareholder returns.
Explore LINDE PLC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: LINDE PLC earns 10.8% ROIC, Top 50% in Materials
LINDE PLC's trailing-twelve-month ROIC of 10.8% ranks Top 50% in Materials companies (sector median: 5.7%), driven by NOPAT margin of 20.4% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-10-31. Gross margin of 48.8% with operating margin at 26.3% reflects strong pricing power.
| Metric | LIN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Adequate | Above sector median of 5.7% |
| Return on Equity (ROE) | 18.0% | Good | Efficient use of shareholder equity |
| Gross Margin | 48.8% | Good | Strong pricing power |
| Operating Margin | 26.3% | Excellent | Efficient operations |
Cash Flow: LINDE PLC generates $5.1B FCF at 15.0% margin, positive NaN/8 quarters
LINDE PLC generated $5.1B in free cash flow (TTM), a 15.0% FCF margin, a margin that ranks Top 10% in Materials. Operating cash flow exceeds net income by 1.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | LIN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 15.0% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $5.1B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: LINDE PLC at 0.7x leverage
LINDE PLC's debt-to-equity ratio of 0.7x reflects moderate leverage. Total debt of $26.7B offset by $5.1B in cash. Source: 10-Q filed 2025-10-31.
| Metric | LIN | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Good | Moderate leverage |
| Net Cash Position | $-21.6B | Warning | Net debt position |
Valuation: LINDE PLC trades at 29.0x earnings
LINDE PLC trades at a P/E of 29.0x. Free cash flow yield of 2.5% reflects market expectations for growth.
| Metric | LIN | Rating | Context |
|---|---|---|---|
| P/E Ratio | 29.0x | Adequate | Premium valuation |
| EV/Sales | 6.5x | Adequate | Growth premium priced in |
| FCF Yield | 2.5% | Adequate | Lower cash yield |
| Dividend Yield | 1.4% | Adequate | Growth focus over income |
Capital Allocation: LINDE PLC returns 3.7% shareholder yield
LINDE PLC's total shareholder yield is 3.7% (dividends 1.4% + buybacks 2.3%). Source: 10-Q filed 2025-10-31.
| Metric | LIN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.7% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.3% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $7.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Top 50% | 1.9x above |
| Free Cash Flow Margin | 15.0% | Top 10% | 29.5x above |
| Gross Margin | 48.8% | Top 25% | 1.9x above |
| Operating Margin | 26.3% | Top 25% | 3.4x above |
| Return on Equity (ROE) | 18.0% | Top 50% | 2.4x above |
| P/E Ratio | 29.0x | N/A | - |
Financial Scorecard
| Metric | LIN | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Adequate | Top 50% of sector (median: 5.7%) |
| Free Cash Flow Margin | 15.0% | Good | Top 10% of sector (median: 0.5%) |
| Gross Margin | 48.8% | Good | Top 25% of sector (median: 25.2%) |
| Debt to Equity Ratio | 69.8% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 29.0x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.5% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is LINDE PLC's Return on Invested Capital (ROIC)?
LINDE PLC (LIN) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.8%. This compares above the sector median of 5.7%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is LINDE PLC's Free Cash Flow Margin?
LINDE PLC (LIN) has a free cash flow margin of 15.0%, generating $5.1 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is LINDE PLC stock overvalued or undervalued?
LINDE PLC (LIN) trades at a P/E ratio of 29.0x, which is above the sector median of N/A. The EV/Sales multiple is 6.5x. Free cash flow yield is 2.5%, reflecting growth expectations priced into the stock.
Q: Does LINDE PLC pay a dividend?
LINDE PLC (LIN) currently pays a dividend yield of 1.4%. Including share buybacks, the total shareholder yield is 3.7%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does LINDE PLC have?
LINDE PLC (LIN) has a debt-to-equity ratio of 0.7x with total debt of $26.7 billion. Net debt position is $21.6 billion.
Q: What is LINDE PLC's revenue and earnings growth?
LINDE PLC (LIN) grew revenue by 3.0% year-over-year. Earnings per share increased by 7.3% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is LINDE PLC buying back stock?
LINDE PLC (LIN) repurchased $4.6 billion of stock over the trailing twelve months. This represents a buyback yield of 2.3%.
Q: How does LINDE PLC compare to competitors in Materials?
Compared to other companies in Materials, LINDE PLC (LIN) shows: ROIC of 10.8% is above the sector median of 5.7% (Top 38%). FCF margin of 15.0% exceeds the sector median of 0.5% (Top 8% of sector). Gross margin at 48.8% is 23.6 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with LINDE PLC?
LINDE PLC (LIN) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.