LIN

Linde

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Basic Materials

industry

Specialty Chemicals

Exchange

Nasdaq

County of HQ

United Kingdom

Next Earnings Date

05/01/26

Business Summary

Linde operates a global industrial gases platform supplying oxygen, nitrogen, hydrogen, and specialty gases under long-term contracts to manufacturing, healthcare, energy, and electronics customers. The moat is built on high switching costs, on-site production infrastructure embedded directly within customer facilities, and multi-year take-or-pay agreements that stabilize cash flow. Capital intensity acts as a barrier to entry, while scale enables operating leverage and margin consistency. Cash generation stems from recurring industrial demand tied to essential processes rather than discretionary spending, allowing the company to compound steadily across cycles.

VALUATION

P/E

34.5

Market Cap ($M USD)

$233,156

Forward P/E

25.8

PEG

2.4

PRICE TO SALES

7

PRICE TO BOOK

6.1

EV / EBITDA

19.5

5-Year Average P/E

DIVIDEND

Yield

1.20%

Annual Payout

$6.40

Payout Ratio

40.80%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

8.60%

Financial Health & Profitability

Earnings Per Share

$14.69

Next Year EPS Growth Estimate

$19.48

Next Year Revenue Growth Estimate

5.00%

Return on Equity (ROE)

18.00%

Operating Margin

27.20%

Debt-to-Equity

0.7

Piotroski F-Score

6

Altman Z-Score

4

Return on Invested Capital (ROIC)

11.20%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 34.5x earnings and 25.8x forward earnings, the market is clearly pricing LIN as a premium compounder, not a cyclical commodity chemical name. However, a PEG Forward of 2.4 signals that growth expectations may already be more than fully priced in, especially with EPS next year estimated at $14.69 versus current EPS of 19.5. The Altman Z-Score of 4 indicates strong balance sheet stability and low bankruptcy risk, reinforcing financial safety, but the combination of a 7x sales multiple and 6.1x book value leaves little margin for valuation error. This is a high-quality franchise trading at a high-quality price—arguably fairly valued to slightly expensive rather than mispriced.

AI Exposure / Tech Reliance

As a Specialty Chemicals company within Basic Materials, LIN supplies essential industrial gases and inputs that underpin semiconductor fabrication, electronics manufacturing, and advanced industrial processes tied to AI infrastructure. Its products are mission-critical rather than discretionary, making it structurally resilient to technological shifts. As AI-driven data center and manufacturing demand grows, its industry positioning provides indirect but durable exposure to tech expansion cycles.

The Bull Case

A GARP investor would be drawn to the 11.20% ROIC, which exceeds many capital-intensive peers and signals disciplined capital allocation in a heavy asset business. An 18.00% operating margin in Basic Materials is strong and suggests pricing power and efficiency, not commodity-level volatility. The Piotroski F-Score of 6 reflects fundamentally sound operations without distress signals, while a 5.00% return on equity—although modest—remains supported by a manageable 27.20% debt-to-equity ratio. Add a solid Altman Z-Score of 4 and you have a financially stable operator with institutional-grade resilience, trading at a forward multiple lower than its trailing P/E, implying earnings normalization rather than deterioration.

The Bear Case

The biggest red flag is valuation relative to growth: a PEG of 2.4 combined with a forward P/E of 25.8 leaves little upside if growth underwhelms. EPS next year is estimated at $14.69 compared to 19.5 currently, suggesting a potential earnings contraction that clashes with the premium multiple. A current ratio of 0.9 indicates tight short-term liquidity, which is not ideal in a capital-intensive sector. Meanwhile, 8.60% short interest signals a meaningful cohort betting against the name, possibly anticipating margin compression or cyclical demand weakness.

Market Sentiment & Smart Money

Short Interest %

1.20%

Analyst Consensus

1.4

Average Analyst Price Target

$522.23

Institutional Ownership %

87.10%

1-Year Beta

0.32

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

98.50%%

Distance to 52-Week Low

129.80%%