Linde plc Ordinary Shares
🇺🇸 LIN · NYSE/NASDAQ · IE000S9YS762
Materials
USD 502.60 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
34.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 502.60 ÷ 14.72 = 34.1
TTM period through: 2025-12-31
Forward P/E (estimated): 28.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 34.4
Yield (Fwd)
1.27%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.21%
Net Debt/EBITDA (TTM)
1.7x
Latest quarter: 7.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 7.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
43.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 40.8%
Cash Flow Payout (TTM): 27.2%
FCF Coverage (TTM): 1.81x
ROE
17.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Linde is a dominant global leader in the industrial gas oligopoly, offering utility-like cash flows, an impeccable balance sheet, and exceptional business quality. While the company boasts highly secure fundamentals and a reliably growing dividend, the current valuation around $502 offers no margin of safety. Existing shareholders should maintain positions given the phenomenal underlying business, but new investors must wait for a major market correction to provide a better entry point.
Sector Context
Linde operates as a dominant player in the global industrial gas oligopoly, providing essential gases like oxygen, nitrogen, and hydrogen to diverse industries under long-term contracts. This business model generates highly predictable, utility-like cash flows with significant pricing power and exceptionally high barriers to entry, making it an incredibly resilient asset for long-term compounders.
📊 Strategy Analysis
- • Exceptional business quality characterized by a wide economic moat, long-term contracts, and an expanding EBITDA margin of 38.1%.
- • Flawless balance sheet with a conservative Net Debt/EBITDA ratio of 1.69x, providing substantial financial flexibility.
- • Perfect 10-year dividend consistency score with an 8.1% CAGR and excellent free cash flow coverage (1.81x), highlighting outstanding dividend safety.
⚠ What to Watch
- • Current P/E of 34.15x is heavily stretched, far exceeding the strategy's target range of 8-15x and limiting upside potential.
- • The trailing dividend yield of 1.21% falls significantly below the strategy's 3% minimum requirement for income generation.
- • Trading at $502.60, the stock sits substantially above our monopoly-adjusted fair value upper bound of $264.91, offering zero margin of safety for new capital.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.