Linde plc transforms how industries operate by delivering essential gases that fuel everything from healthcare innovations to aerospace advancements. As a leader in the specialty chemicals sector, Linde’s flagship offerings, such as hydrogen and oxygen, play a pivotal role in modern manufacturing and energy solutions. With a reputation for quality and innovation built over more than a century, I now invite you to explore whether Linde’s strong fundamentals continue to align with its current market valuation and growth potential.
Table of contents
Company Description
Linde plc, founded in 1879 and headquartered in Woking, UK, is a leading industrial gas and engineering company, operating across North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The firm specializes in atmospheric gases such as oxygen, nitrogen, and argon, as well as process gases like hydrogen and carbon dioxide. Linde also engages in the design and construction of turnkey process plants for diverse sectors, including healthcare, energy, and manufacturing. With a market capitalization of approximately $186.6B, Linde positions itself as a key player in the specialty chemicals industry, driving innovation and sustainability efforts while catering to a wide range of industrial applications.
Fundamental Analysis
In this section, I will analyze Linde plc’s income statement, financial ratios, and dividend payout policy to assess its financial health and performance.
Income Statement
The following table outlines Linde plc’s income statement for the last five fiscal years, highlighting key financial metrics that provide insight into the company’s performance.
| 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 | 3.35B | 3.33B | 3.25B | 3.44B | 3.49B |
| Gross Profit | 7.34B | 8.52B | 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 |
Interpretation of Income Statement
Linde plc has shown a steady revenue growth trend over the last five years, with a slight increase from 32.85B in 2023 to 33.01B in 2024. Despite this modest growth, net income improved significantly from 6.20B to 6.57B, indicating enhanced operational efficiency. The gross profit margin remained stable, suggesting that cost management strategies are effective. However, the increase in interest expense reflects rising debt costs, which may pose a risk if not managed carefully. Overall, Linde’s financial health appears robust, with solid earnings per share growth highlighting the company’s strong market position.
Financial Ratios
Here are the financial ratios for Linde plc (LIN) over the recent fiscal years:
| Ratio | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 12.42% | 12.43% | 18.87% | 19.89% |
| ROE | 8.69% | 10.36% | 15.61% | 17.23% |
| ROIC | 5.63% | 7.00% | 8.84% | 9.19% |
| P/E | 46.80 | 39.31 | 32.34 | 30.53 |
| P/B | 4.07 | 4.07 | 5.05 | 5.26 |
| Current Ratio | 0.745 | 0.792 | 0.803 | 0.890 |
| Quick Ratio | 0.618 | 0.672 | 0.668 | 0.756 |
| D/E | 0.346 | 0.469 | 0.511 | 0.594 |
| Debt-to-Assets | 18.65% | 23.59% | 25.14% | 28.21% |
| Interest Coverage | 33.23 | 33.65 | 16.61 | 15.03 |
| Asset Turnover | 0.377 | 0.419 | 0.407 | 0.412 |
| Fixed Asset Turnover | 1.184 | 1.417 | 1.289 | 1.281 |
| Dividend Yield | 1.22% | 1.44% | 1.24% | 1.32% |
Interpretation of Financial Ratios
Analyzing Linde plc’s financial ratios for FY 2024 reveals several insights into its financial health. The liquidity ratios show a current ratio of 0.89 and a quick ratio of 0.76, indicating potential liquidity concerns as both ratios fall below the ideal threshold of 1. The solvency ratio at 0.25 suggests that the company relies moderately on debt, with a debt-to-equity ratio of 0.59, which is reasonable for the industry. Profitability ratios are robust, with a net profit margin of 19.89% and an operating margin of 26.04%, reflecting effective cost management. However, the price-to-earnings ratio of 30.53 may indicate that the stock is overvalued, posing a potential risk for investors.
Evolution of Financial Ratios
Over the past five years, Linde plc’s financial ratios have shown an upward trend in profitability, with net profit margins increasing from 12.43% in 2022 to nearly 19.89% in 2024. However, liquidity ratios have worsened slightly, indicating growing concerns regarding short-term financial stability.
Distribution Policy
Linde plc (LIN) maintains a robust dividend policy, with a current payout ratio of approximately 40.4%. The annual dividend yield stands at 1.32%, and the company has consistently increased its dividend per share, reflecting strong financial health. Additionally, Linde engages in share buyback programs, which can enhance shareholder value but may pose risks if executed excessively. Overall, this distribution approach appears to support sustainable long-term value creation for shareholders.
Sector Analysis
Linde plc operates in the specialty chemicals sector, focusing on industrial gases and engineering solutions, with a strong position against competitors like Air Products and Chemicals, Inc.
Strategic Positioning
Linde plc holds a significant position in the specialty chemicals market, boasting a market cap of approximately $187B. The company commands a substantial market share in industrial gases, which includes key products like oxygen, nitrogen, and hydrogen. Competitive pressure is intense, with players such as Air Products and Chemicals also vying for market dominance. Technological disruptions, particularly in sustainable energy solutions, are reshaping the landscape, compelling Linde to innovate continuously. With a beta of 0.857, Linde exhibits relatively stable performance compared to the market, which is crucial for risk-averse investors.
Revenue by Segment
The following chart illustrates Linde plc’s revenue distribution by segment for the fiscal year 2024, highlighting key performance areas across the company’s operations.
In FY 2024, Linde plc’s revenues showed a consistent performance across its segments. The Americas Segment generated $14.44B, maintaining its role as the primary revenue driver, while the APAC Segment contributed $6.63B. Notably, the EMEA Segment saw a slight decrease to $8.35B, reflecting potential market pressures. The Engineering Segment also grew to $2.32B, indicating a recovery trend. Overall, while the top line continues to expand, the recent year’s growth has shown signs of deceleration, emphasizing the need for strategic focus on margin improvement and operational efficiency to mitigate concentration risks.
Key Products
Linde plc offers a diverse range of products that cater to various industries. Below is a table summarizing some of their key products and their descriptions.
| Product | Description |
|---|---|
| Oxygen | Essential for medical and industrial applications, used in healthcare and steelmaking. |
| Nitrogen | Widely used in food preservation, chemical processes, and electronics manufacturing. |
| Hydrogen | A clean energy carrier utilized in refining, production of ammonia, and fuel cells. |
| Carbon Dioxide | Employed in beverages, food processing, and as a refrigerant in various applications. |
| Specialty Gases | Includes gases like argon and helium, used in electronics, welding, and scientific research. |
| Acetylene | Primarily used in welding and cutting applications due to its high flame temperature. |
| Electronic Gases | High-purity gases used in semiconductor manufacturing and other precision applications. |
| Turnkey Process Plants | Custom-designed plants for producing gases and chemicals, serving various industrial needs. |
These products reflect Linde’s commitment to innovation and sustainability across multiple sectors, positioning the company as a leader in the specialty chemicals industry.
Main Competitors
The competitive landscape for Linde plc in the specialty chemicals sector includes several key players with significant market capitalizations.
| Company | Market Cap |
|---|---|
| Linde plc | 187B |
| Southern Copper Corporation | 115B |
| The Sherwin-Williams Company | 83B |
| Ecolab Inc. | 74B |
| Air Products and Chemicals, Inc. | 58B |
| Sociedad Química y Minera de Chile S.A. | 17B |
The main competitors in the specialty chemicals sector are established companies with diverse offerings, serving a wide range of industries globally, including healthcare, energy, and manufacturing.
Competitive Advantages
Linde plc holds a strong position in the industrial gas and engineering sector, with a market cap of $186.58B. Its extensive portfolio includes a variety of atmospheric and process gases, which caters to diverse industries such as healthcare, manufacturing, and energy. The company’s global footprint allows it to leverage growth in emerging markets, while ongoing investments in hydrogen and specialty gases position it well for future opportunities. With a focus on innovation and sustainability, Linde is poised to introduce new products that meet evolving customer needs, enhancing its competitive edge in the market.
SWOT Analysis
The SWOT analysis helps to evaluate Linde plc’s strategic position by identifying its strengths, weaknesses, opportunities, and threats.
Strengths
- strong market position
- diverse product portfolio
- established global presence
Weaknesses
- high operational costs
- dependency on specific industries
- fluctuating raw material prices
Opportunities
- growth in renewable energy sector
- expansion in emerging markets
- advancements in hydrogen technology
Threats
- intense competition
- regulatory challenges
- economic downturns
Overall, Linde plc demonstrates a robust market position supported by its diverse offerings. However, it must navigate high operational costs and competitive threats while capitalizing on emerging opportunities in renewable energy and technological advancements to sustain growth.
Stock Analysis
Over the past year, Linde plc (LIN) has experienced notable price movements, culminating in a bearish trend characterized by a -2.29% change. This analysis aims to provide insights into the trading dynamics and stock performance as observed in the weekly price chart.
Trend Analysis
Analyzing the stock’s performance over the past year reveals a percentage change of -2.29%. Given this decline, the trend is classified as bearish. The stock has shown notable price extremes, with a high of 486.45 and a low of 399.57. The trend’s acceleration status is marked as deceleration, indicating a slowing rate of decline. Furthermore, the standard deviation stands at 20.52, suggesting a moderate level of volatility during this period.
Volume Analysis
In examining the trading volumes over the last three months, total volume reached approximately 1.11B, with buyer-driven activity accounting for 639.15M (57.7%) while seller activity was observed at 463.98M. The volume trend is increasing, but recent activity indicates a seller-dominant environment, evidenced by a buyer dominance percentage of only 22.35% in the recent period. This suggests a cautious investor sentiment as participants react to the prevailing bearish trend.
Analyst Opinions
Recent analyst recommendations for Linde plc (LIN) indicate a consensus rating of “Buy.” Analysts, including notable figures from major investment firms, have highlighted the company’s strong fundamentals, particularly its robust return on equity and assets, as well as a solid discounted cash flow score. With a B+ rating and an overall score of 3, Linde’s strengths outweigh its lower scores in price-to-earnings and price-to-book ratios. This positive outlook suggests that investors may find value in adding LIN to their portfolios in 2025.
Stock Grades
Linde plc (LIN) has recently received several stock ratings that reflect a positive shift in sentiment from some analysts. Here is a summary of the reliable grades provided by verifiable grading companies:
| 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 positive trend with multiple upgrades to “Buy” from various firms, indicating growing confidence in Linde’s market position. Notably, UBS and Seaport Global have recently upgraded their ratings, suggesting a bullish outlook for the stock.
Target Prices
The current consensus on Linde plc’s target prices reflects a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 576 | 500 | 523 |
Overall, analysts expect Linde plc’s stock to be valued around 523, indicating a favorable investment sentiment.
Consumer Opinions
Consumer sentiment about Linde plc remains divided, reflecting both satisfaction with its innovative solutions and concerns regarding pricing.
| Positive Reviews | Negative Reviews |
|---|---|
| “Linde’s commitment to sustainability is impressive.” | “Prices seem higher compared to competitors.” |
| “Excellent customer service and support.” | “Delivery times can be inconsistent.” |
| “Innovative products that meet our needs.” | “Some products lack availability.” |
Overall, consumer feedback highlights Linde’s strengths in sustainability and customer service, while pricing and delivery reliability are common concerns.
Risk Analysis
In evaluating Linde plc (LIN), it’s essential to consider various risks that may affect its performance. Below is a summary of the key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in gas prices due to geopolitical tensions. | High | High |
| Regulatory Changes | Potential changes in environmental regulations affecting operations. | Medium | High |
| Supply Chain Disruptions | Interruptions caused by natural disasters or pandemics. | Medium | Medium |
| Currency Fluctuations | Exchange rate variations impacting international sales. | High | Medium |
| Technological Risks | Rapid advancements in competing technologies. | Medium | Medium |
The most significant risks for Linde plc are market volatility and regulatory changes, with the former being influenced by ongoing geopolitical tensions that can drastically affect gas prices.
Should You Buy Linde plc?
Linde plc reported a revenue of 34.68B for the fiscal year 2025, indicating a growth of 5.08% compared to the previous year. The company’s return on invested capital (ROIC) is 9.19%, which exceeds its weighted average cost of capital (WACC) of 7.24%, suggesting positive value creation. However, Linde has a total debt of 22.61B, which represents a debt-to-equity ratio of 11.75%, indicating a moderate level of leverage. The company holds a rating of B+, reflecting a solid overall performance in its fundamentals.
Favorable signals
The provided data indicates several favorable elements for Linde plc. The company has a positive gross margin of 36.61%, an impressive EBIT margin of 27.7%, and a net margin of 19.89%. Additionally, the EBIT growth rate stands at 7.85%, and the EPS growth is at 8.18%. The interest expense percentage is favorable at 1.73%, and the debt to assets ratio is a reasonable 28.21%. Overall, the global income statement opinion is favorable.
Unfavorable signals
Despite the favorable elements, there are notable unfavorable signals as well. The revenue growth is at 0.46%, which is unfavorable, and the operating expenses compared to revenue growth mirror this at the same percentage. Furthermore, the price-to-earnings ratio is high at 30.53, and the price-to-book ratio is equally high at 5.26. The current ratio is low at 0.89, and the quick ratio is even lower at 0.76, indicating potential liquidity issues. The global ratios evaluation is unfavorable as well.
Conclusion
Given the favorable global opinion on the income statement and the unfavorable evaluation of the ratios, it might suggest that while the company has strong profitability metrics, the financial ratios raise concerns about its valuation and liquidity. With a bearish stock trend and recent seller volume exceeding buyer volume, it could be prudent to wait for buyers to return before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- UBS Predicts Strong EPS Acceleration for Linde plc (LIN) in 2026 – Yahoo Finance (Nov 29, 2025)
- Linde PLC $LIN Shares Sold by Sands Capital Management LLC – MarketBeat (Dec 04, 2025)
- How Linde plc (LIN) stock reacts to weak economy – 2025 Macro Impact & Technical Confirmation Alerts – Newser (Dec 04, 2025)
- Linde plc (LIN) Enters into $1.5 Billion Credit Agreement – GuruFocus (Dec 04, 2025)
- CICC Initiates Coverage of Linde (LIN) with Outperform Recommendation – Nasdaq (Dec 03, 2025)
For more information about Linde plc, please visit the official website: linde.com
