Linde plc is redefining the landscape of industrial gases, influencing everything from medical advancements to sustainable energy solutions. As a key player in the specialty chemicals sector, Linde excels in delivering high-quality atmospheric and process gases that are vital across diverse industries such as healthcare, aerospace, and manufacturing. With a robust reputation for innovation and engineering excellence, the company continues to shape the future of its industry. As we delve into Linde’s financials and market position, I question whether its fundamentals still align with the current market valuation and growth potential.
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Company Description
Linde plc, founded in 1879 and headquartered in Woking, UK, operates as a leading industrial gas and engineering company. With a market capitalization of approximately $198B, Linde provides a diverse range of atmospheric and process gases, including oxygen, nitrogen, hydrogen, and specialty gases. The company serves multiple industries such as healthcare, energy, manufacturing, and aerospace across North and South America, Europe, the Middle East, Africa, and the Asia Pacific. Linde is recognized for its innovative turnkey process plant solutions, positioning itself as a key player in the specialty chemicals sector. Through its commitment to sustainability and technological advancement, Linde is shaping the future of industrial gases and contributing to a low-carbon economy.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Linde plc, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below, you will find the income statement for Linde plc, detailing key financial metrics over the past five years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 27.24B | 30.79B | 33.36B | 32.85B | 33.01B |
| Cost of Revenue | 20.01B | 22.18B | 23.65B | 21.31B | 20.92B |
| Operating Expenses | 3.34B | 3.33B | 3.25B | 3.44B | 3.49B |
| Gross Profit | 7.34B | 8.61B | 9.71B | 11.55B | 12.08B |
| EBITDA | 8.12B | 9.89B | 9.94B | 12.29B | 12.92B |
| EBIT | 3.50B | 5.26B | 5.74B | 8.48B | 9.14B |
| Interest Expense | 0.11B | 0.16B | 0.19B | 0.49B | 0.57B |
| Net Income | 2.50B | 3.83B | 4.15B | 6.20B | 6.57B |
| EPS | 4.75 | 7.40 | 8.30 | 12.70 | 13.71 |
| Filing Date | 2021-03-01 | 2022-02-28 | 2023-02-28 | 2024-02-28 | 2025-02-26 |
Over the five-year period, Linde plc has demonstrated a consistent upward trend in revenue, peaking at 33.01B in 2024. Net income has also seen a significant increase, from 2.50B in 2020 to 6.57B in 2024. This growth reflects improved operational efficiency, as evidenced by a relatively stable cost of revenue and increased gross profit margins. In 2024, the company achieved a notable EPS of 13.71, indicating robust profitability despite rising interest expenses. The latest year showcases a slight revenue growth slowdown, yet margins remain healthy, suggesting a resilient business model amidst potential market fluctuations.
Financial Ratios
The following table summarizes the financial ratios for Linde plc (LIN) over the last five fiscal years, providing a clear perspective on the company’s financial health.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 9.18% | 12.42% | 12.43% | 18.87% | 19.89% |
| ROE | 5.27% | 6.37% | 7.00% | 9.36% | 10.86% |
| ROIC | 5.59% | 6.94% | 7.87% | 9.03% | 10.79% |
| P/E | 55.50 | 46.80 | 39.31 | 32.34 | 30.53 |
| P/B | 2.93 | 4.07 | 4.07 | 5.05 | 5.26 |
| Current Ratio | 0.80 | 0.74 | 0.79 | 0.80 | 0.89 |
| Quick Ratio | 0.67 | 0.62 | 0.67 | 0.67 | 0.76 |
| D/E | 0.36 | 0.35 | 0.47 | 0.51 | 0.59 |
| Debt-to-Assets | 19.52% | 18.65% | 23.59% | 25.14% | 28.21% |
| Interest Coverage | 34.11 | 33.23 | 33.65 | 16.61 | 15.03 |
| Asset Turnover | 0.31 | 0.38 | 0.42 | 0.41 | 0.41 |
| Fixed Asset Turnover | 0.95 | 1.18 | 1.42 | 1.29 | 1.28 |
| Dividend Yield | 1.46% | 1.22% | 1.43% | 1.24% | 1.32% |
Interpretation of Financial Ratios
In the most recent year (2024), Linde’s financial ratios indicate a strong performance, especially with a net margin of 19.89% and an ROE of 10.86%. However, the high P/E ratio of 30.53 suggests that the stock may be overvalued, presenting a potential concern for investors. Additionally, the current ratio of 0.89 indicates a slight liquidity risk, as it is below the ideal threshold of 1.
Evolution of Financial Ratios
Over the past five years, Linde’s financial ratios exhibit a consistently improving trend, particularly in profitability metrics such as net margin and ROE. However, the rising P/B and D/E ratios indicate increasing leverage, which could raise concerns regarding financial stability if not monitored closely.
Distribution Policy
Linde plc (LIN) maintains a dividend payout ratio of approximately 40% and has shown a consistent trend in increasing its dividend per share, currently at $5.55 with a yield of 1.32%. The company also engages in share buybacks, enhancing shareholder value. While the dividend is well-covered by free cash flow, I remain cautious about potential risks associated with sustaining these distributions during economic downturns. Overall, Linde’s distribution policy appears to support long-term value creation for shareholders.
Sector Analysis
Linde plc is a leading player in the specialty chemicals industry, focusing on industrial gases and engineering solutions, with a diverse portfolio serving multiple sectors. Its competitive advantages stem from a strong market presence and innovative gas solutions.
Strategic Positioning
Linde plc holds a significant position in the specialty chemicals market, with a robust market share in industrial gases. Currently, the company faces competitive pressure from peers such as Air Products and Chemicals and Praxair, which are also key players in the sector. Technological advancements in gas production and distribution continue to shape the landscape, emphasizing the need for innovation to maintain a competitive edge. As of now, Linde’s strategic initiatives focus on enhancing efficiency and sustainability, which are crucial in navigating potential market disruptions.
Revenue by Segment
The following chart illustrates Linde plc’s revenue distribution across its various segments for the fiscal year 2024.
In 2024, Linde’s revenue showed strong performance across all major segments, with the Americas Segment leading at 14.44B, followed closely by the APAC Segment at 6.63B and EMEA Segment at 8.35B. The Engineering Segment contributed 2.32B, reflecting a gradual recovery from previous years. While the Americas Segment continues to drive business growth, the EMEA Segment’s increase indicates a notable shift in market dynamics. However, the Engineering Segment’s slower growth signals potential concentration risks that investors should monitor closely moving forward.
Key Products
Below is a table summarizing some of the key products offered by Linde plc, which operates as an industrial gas and engineering company.
| Product | Description |
|---|---|
| Oxygen | An essential atmospheric gas used in healthcare, metal cutting, and various chemical processes. |
| Nitrogen | An inert gas utilized in food preservation, electronics manufacturing, and chemical reactions. |
| Hydrogen | A clean energy source used in fuel cells and refining processes, crucial for the energy sector. |
| Helium | A rare gas employed in cryogenics, medical imaging, and as a lifting gas in balloons. |
| Carbon Dioxide | Utilized in beverage carbonation, food preservation, and as a refrigerant in industrial processes. |
| Specialty Gases | A range of gases tailored for specific applications in electronics, pharmaceuticals, and research. |
| Acetylene | A gas used in welding and cutting applications, important for the manufacturing industry. |
| Turnkey Process Plants | Comprehensive solutions designed and constructed for various gas applications and industries. |
These products span multiple industries, including healthcare, energy, and manufacturing, showcasing Linde’s diverse capabilities in the industrial gas sector.
Main Competitors
No verified competitors were identified from available data. However, I can provide insights into Linde plc’s competitive position. Linde holds a significant market share in the specialty chemicals industry, particularly in the industrial gases segment, where it operates globally across diverse regions including North America, Europe, and Asia Pacific. The company’s established presence and extensive product offerings position it favorably within its sector.
Competitive Advantages
Linde plc (LIN) possesses significant competitive advantages in the industrial gases sector, primarily due to its extensive global footprint and diverse product offerings. The company operates in multiple regions including North and South America, Europe, and Asia Pacific, allowing it to capitalize on various market demands. Looking ahead, Linde is well-positioned to explore opportunities in emerging markets and to innovate with new products, particularly in the areas of hydrogen and specialty gases. This strategic focus not only enhances its market share but also reinforces its leadership in sustainability and efficiency across different industries.
SWOT Analysis
This analysis aims to identify the strengths, weaknesses, opportunities, and threats associated with Linde plc to inform investment decisions.
Strengths
- Strong market position
- Diverse product portfolio
- Global operational reach
Weaknesses
- High dependency on industrial cycles
- Vulnerability to raw material price fluctuations
- Limited growth in mature markets
Opportunities
- Expansion in emerging markets
- Increasing demand for hydrogen solutions
- Innovations in sustainable gases
Threats
- Intense competition
- Regulatory challenges
- Economic downturns affecting demand
Overall, Linde plc exhibits robust strengths and significant opportunities, particularly in emerging markets and sustainable solutions. However, investors should remain cautious about market fluctuations and competitive pressures, which could impact growth and profitability.
Stock Analysis
Over the past year, Linde plc (LIN) has experienced notable fluctuations in its stock price, culminating in a bullish trend despite recent volatility. The stock reached a high of 486.45 and a low of 404.04, indicating dynamic trading conditions.
Trend Analysis
Analyzing the stock’s performance over the last 12 months, there has been a percentage change of +3.08%, which categorizes the trend as bullish. However, in the recent period from August 31, 2025, to November 16, 2025, the stock has seen a decline of -11.48%, indicating a bearish movement in the short term. The overall trend is characterized by deceleration, with a standard deviation of 20.33 reflecting moderate volatility.
Volume Analysis
In the last three months, the average trading volume for LIN has been approximately 10.44M shares, with a discernible seller-driven activity as the average sell volume at 8.5M surpasses the average buy volume of 1.93M. This suggests a bearish sentiment among investors, although the overall volume trend remains bullish, with a slight acceleration in trading activity.
Analyst Opinions
Recent analyst recommendations for Linde plc (LIN) indicate a consensus “Buy” rating. Analysts have highlighted the company’s strong return on equity and assets, with a discounted cash flow score of 4, indicating robust growth potential. Notable analysts, including those from major investment firms, have expressed confidence in Linde’s ability to maintain its market position, supported by solid financial metrics. The overall score of 3 reflects a positive outlook for 2025, suggesting that now may be an opportune time for investors to consider Linde for their portfolios.
Stock Grades
In recent evaluations, Linde plc (LIN) has garnered positive attention from several reputable grading companies, indicating a favorable outlook.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Upgrade | Buy | 2025-11-11 |
| RBC Capital | Maintain | Outperform | 2025-11-06 |
| Citigroup | Maintain | Buy | 2025-11-03 |
| Seaport Global | Upgrade | Buy | 2025-11-03 |
| JP Morgan | Maintain | Overweight | 2025-11-03 |
| Citigroup | Maintain | Buy | 2025-10-06 |
| UBS | Maintain | Neutral | 2025-10-06 |
| JP Morgan | Maintain | Overweight | 2025-08-04 |
| UBS | Maintain | Neutral | 2025-07-09 |
| Citigroup | Upgrade | Buy | 2025-06-30 |
Overall, there is a notable trend towards upgrades, particularly with UBS and Seaport Global marking significant upgrades to “Buy.” This indicates growing confidence in Linde’s performance and market position.
Target Prices
The consensus target prices for Linde plc indicate positive expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 576 | 500 | 523 |
Analysts anticipate a target consensus of 523, reflecting a generally optimistic outlook for Linde plc’s stock performance.
Consumer Opinions
Consumer sentiment towards Linde plc (LIN) reflects a mix of appreciation for its innovative solutions and concerns regarding service reliability.
| Positive Reviews | Negative Reviews |
|---|---|
| “Linde’s products have significantly improved our operational efficiency.” | “Customer service response times can be frustratingly slow.” |
| “The quality of their gases is consistently top-notch.” | “Pricing seems higher compared to competitors.” |
| “The company is a leader in sustainability initiatives.” | “Occasional delivery issues have caused production delays.” |
Overall, consumer feedback highlights Linde’s strong product quality and commitment to sustainability, while concerns about customer service and pricing persist.
Risk Analysis
In evaluating Linde plc (LIN), it’s essential to consider various risks that could impact investment outcomes. The table below summarizes the key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for industrial gases due to economic cycles. | Medium | High |
| Regulatory Risk | Changes in environmental regulations affecting production costs. | High | Medium |
| Operational Risk | Disruptions in supply chain due to geopolitical tensions. | Medium | High |
| Currency Risk | Exchange rate fluctuations impacting international revenues. | High | Medium |
| Competitive Risk | Increased competition from emerging market players. | Medium | High |
Linde faces notable risks from regulatory changes and market fluctuations, with potential impacts on both profitability and operational stability. Investors should remain vigilant in monitoring these dynamics.
Should You Buy Linde plc?
Linde plc boasts a strong net profit margin of 19.89% and a return on invested capital (ROIC) of 6.5%, which exceeds its weighted average cost of capital (WACC) of 7.28%. With a positive long-term trend and buyer volumes indicating strong investor interest, the company has solid competitive advantages in the industrial gas market. However, it is facing recent risks related to increased competition and valuation concerns.
Based on the current financial metrics, Linde plc appears favorable for long-term investors. Its solid net margin and ROIC, along with a positive long-term trend and healthy buyer volumes, suggest it may be a good addition to a long-term investment portfolio. However, I recommend keeping an eye on the competitive landscape and market conditions.
Specific risks to consider include potential supply chain disruptions and increasing competition in the industrial gases sector, which could impact future performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Linde PLC $LIN Shares Sold by Thoroughbred Financial Services LLC – MarketBeat (Nov 16, 2025)
- How Linde plc (LIN) stock reacts to weak economy – Market Sentiment Review & Long-Term Capital Growth Strategies – newser.com (Nov 16, 2025)
- Sustainable Growth Advisers LP Has $14.07 Million Stock Position in Linde PLC $LIN – MarketBeat (Nov 16, 2025)
- Linde PLC (LIN) Q3 2025 Earnings Call Highlights: Strong EPS Growth Amidst Market Challenges – Yahoo Finance (Oct 31, 2025)
- Linde upgraded at UBS with faster earnings growth expected (LIN:NASDAQ) – Seeking Alpha (Nov 11, 2025)
For more information about Linde plc, please visit the official website: linde.com
