Linde (LIN)
Materials · $240B market cap · SEC CIK 0001707925
ahead of 77% of the S&P 500 · #4 of 26 in Materials
Next reports on Feb 3, 2027, before the open, with analysts expecting $4.54 in earnings per share.
52-week range $387.78 to $548.20. 5% below its 52-week high and 35% above its low.
The case for LIN
- Revenue growing 8.2% year over year.
- Return on equity of 18%.
- Moves less than the market (beta 0.67).
- Pays a modest 1.2% dividend.
- Net margin of 19% is wider than 88% of Materials companies.
The case against
- Expensive for its growth: 38.0× mid-cycle earnings, where 8%+ a year of growth plus a 1.2% dividend would justify about 22×.
- Priced at 6.6× sales with revenue growing only 8.2%.
- Current liabilities exceed current assets (ratio 0.86).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 33 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 62 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 74 |
| Momentumhow the price has behaved lately | 73 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +8.2% |
|---|---|
| Over 5 years | +4.5% a year |
| FY2025 revenue | $34.0B (+3%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $5.1B |
|---|---|
| Of revenue | 15% |
| Of profit | 74% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 48% |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 → now | 19.9% → 20.3% → 19.3% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $5.1B |
|---|---|
| Long-term debt | $20.7B |
| Net debt | $15.6B |
| Years to repay | 2.0 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 34.2× |
|---|---|
| P/E on mid-cycle earnings | 38.0× |
| Fair P/E for its growth | 22× |
| P/FCF | 47.1× |
| Forward P/E | 26.7× |
| EV / EBITDA | 20.2× |
Its profits follow commodity prices, so they are taken as half the latest year and half the average of recent years. At 38.0× those mid-cycle earnings (34.2× the latest year's) it trades well above the 22× that 8%+ a year of growth plus a 1.2% dividend would justify. At 47.1× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Linde's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $34.0B | $33.0B | $32.9B | $33.4B | $30.8B |
| Change on the year | +3% | 0% | −2% | +8% | — |
| Free cash flow | |||||
| Free cash flow | $5.1B | $4.9B | $5.5B | $5.7B | $6.6B |
| Of revenue | 15% | 15% | 17% | 17% | 22% |
| Profit margins | |||||
| Operating margin | 26.3% | 26.2% | 24.4% | 16.1% | 16.2% |
| Net margin | 20.3% | 19.9% | 18.9% | 12.4% | 12.4% |
| Debt vs. cash | |||||
| Cash | $5.1B | $4.8B | $4.7B | $5.4B | $2.8B |
| Long-term debt | $20.7B | $15.3B | $13.4B | $12.2B | $11.3B |
| Net cash (debt) | −$15.6B | −$10.5B | −$8.7B | −$6.8B | −$8.5B |
What Linde says it does
Linde plc is a public limited company formed under the laws of Ireland with its principal offices in the United Kingdom and United States. Linde is the largest industrial gas company worldwide and is a major technological innovator in the industrial gases industry. Its primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, and rare gases) and process gases (hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, and acetylene). The company also designs and builds equipment that produces industrial gases and offers customers a wide range of gas production and processing services such as olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants, and other types of plants. Linde serves a diverse group of industries including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics.…