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1. Company Snapshot

1.a. Company Description

Linde plc operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific.It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene.The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants.


It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment.The company was founded in 1879 and is based in Woking, the United Kingdom.

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1.b. Last Insights on LIN

Linde's recent performance has been impacted by a cautious market sentiment, with investors digesting recent market signals. The company's valuation has been a topic of conversation across the sector, despite steady annual revenue and net income growth. Leadership changes have been announced, with Sanjiv Lamba appointed as Chairman and CEO. The company's third-quarter 2025 financial results are set to be released on October 31, 2025. According to Berenberg, Linde's price target was raised to $515 from $505, maintaining a Buy rating.

1.c. Company Highlights

2. Linde's 2024 Performance: Strong Financials and Growth Prospects

Linde reported strong financial performance in 2024, with a 25.9% return on capital (ROC), EBIT margins increasing 190 basis points to 29.5%, and EPS increasing 10%. These metrics are the best in the industry, providing a source of pride and ownership for the company. As CEO Sanjiv Lamba noted, "We led the industry across key metrics in 2024... These are the best metrics in the industry, some by a wide margin."

Publication Date: Feb -19

📋 Highlights
  • Strong Financial Performance: Linde reported a strong 2024 with a 25.9% return on capital (ROC), 190 basis points expansion in EBIT margins to 29.5%, and a 10% increase in EPS, making it a leader in the industry.
  • Guidance and Outlook: The company initiated full-year EPS guidance of $16.15 to $16.55, representing 4% to 7% growth, and expects margin expansion of 20 to 50 basis points in 2025, driven by growth in Americas and APAC.
  • Segment Performance: Americas and APAC are expected to continue growing their margins, with no impediment to APAC bridging the gap. Healthcare is expected to grow mid-single-digits in the long term, while industrial sectors will see lower volumes, particularly in metals and chemicals.
  • Project Backlog and Investments: Linde has a record sale of gas backlog of $7-plus billion, with a focus on clean energy and electronics projects. The company is investing in a CCS hub in Saudi Arabia and has a strong pipeline of potential hydrogen projects in the U.S., Canada, and other regions.
  • Macro Environment and Market Share: The company expects low to mid-single-digit growth in resilient end markets, driven by electronics and food and beverage. Linde remains a market leader, winning more than its fair share of large projects, and expects its leadership position to continue, driven by network strength and customer relationships.

Fourth Quarter Results and Guidance

In the fourth quarter, sales were flat year-over-year and down 1% sequentially, with foreign currency translation being a 2% headwind. Excluding FX and cost pass-through, underlying sales grew 2% versus last year and were flat from the third quarter. The company initiated full-year EPS guidance of $16.15 to $16.55, representing 4% to 7% growth or 8% to 11% when excluding an estimated 4% currency headwind.

Margin Expansion and Growth Prospects

Linde expects margin expansion in 2025, with a range of 20 to 50 basis points, which is typical for the longer term. The company sees opportunities for growth in resilient end markets, driven by electronics and food and beverage, with low to mid-single-digit growth expected. In healthcare, Linde expects mid-single-digit growth in the long term, but saw flat organic growth in 2024 due to portfolio rationalization in its home care business.

Valuation

With a P/E ratio of 33.91 and a price-to-sales ratio of 6.7, Linde's valuation appears reasonable given its strong financial performance and growth prospects. The company's ROIC and ROE of 9.22% and 17.02%, respectively, also suggest that it is generating strong returns on its investments. However, with a dividend yield of 1.2% and a free cash flow yield of 2.23%, investors may be looking for more income generation from the company.

3. NewsRoom

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

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UBS Predicts Strong EPS Acceleration for Linde plc (LIN) in 2026

Nov -29

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Strong EPS Growth to Drive Linde plc (LIN) in 2026, Supports UBS Bullish Stance

Nov -24

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Has the Market Missed Linde’s Potential After Hydrogen Investment News?

Nov -20

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UBS Turns Bullish on Linde (LIN) with New Buy Rating

Nov -20

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Institutions Love These 3 Companies, Should You As Well?

Nov -19

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Linde (LIN)’s “In Every Single Industry,” Says Jim Cramer

Nov -13

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Seaport Research Upgrades Linde (LIN) to Buy on “Solid” Q3 Results

Nov -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.10%)

6. Segments

Americas

Expected Growth: 5.1%

The Americas region is expected to experience steady growth driven by increasing demand for industrial gases and healthcare services, and a growing need for engineering solutions.

Europe/Middle East/Africa (EMEA)

Expected Growth: 5.1%

The EMEA region is expected to experience steady growth driven by increasing demand for industrial gases and healthcare services, and a growing need for engineering solutions, particularly in the Middle East and Africa.

Asia/Pacific (APAC)

Expected Growth: 5.1%

The APAC region is expected to experience steady growth driven by increasing demand for industrial gases and healthcare services, particularly in China and India, and a growing need for engineering solutions.

Engineering

Expected Growth: 5.1%

The Engineering segment is expected to experience steady growth driven by increasing demand for engineering services, particularly in the energy and chemicals industries.

Other

Expected Growth: 5.1%

The Other segment is expected to experience steady growth driven by increasing demand for LNG and helium, particularly in the energy and aerospace industries.

7. Detailed Products

Industrial Gases

Linde plc provides a range of industrial gases including oxygen, nitrogen, argon, and others, used in various industries such as manufacturing, healthcare, and food processing.

Gas Supply Systems

Linde plc designs and installs gas supply systems for industrial and medical applications, providing a reliable and efficient supply of gases.

Welding and Cutting Equipment

Linde plc offers a range of welding and cutting equipment, including welding machines, cutting torches, and accessories.

Healthcare Gases

Linde plc provides medical gases and equipment for healthcare facilities, including oxygen therapy, anesthesia, and respiratory care.

Clean Energy Solutions

Linde plc offers clean energy solutions, including hydrogen fueling stations and carbon capture technology.

Engineering and Construction Services

Linde plc provides engineering and construction services for industrial and energy projects, including plant design, construction, and commissioning.

8. Linde plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Linde plc operates in the industrial gases market, which has a moderate threat of substitutes. While there are some substitutes available, such as on-site gas generation, they are not yet widely adopted and do not pose a significant threat to Linde's business.

Bargaining Power Of Customers

Linde plc's customers are largely industrial companies that require a steady supply of industrial gases. While some customers may have some bargaining power, the overall bargaining power of customers is low due to the specialized nature of Linde's products and services.

Bargaining Power Of Suppliers

Linde plc relies on a network of suppliers for raw materials, equipment, and services. While some suppliers may have some bargaining power, the overall bargaining power of suppliers is moderate due to the availability of alternative suppliers and Linde's scale and negotiating power.

Threat Of New Entrants

The industrial gases market has significant barriers to entry, including high capital costs, complex logistics, and regulatory hurdles. As a result, the threat of new entrants is low, and Linde plc faces limited competition from new market entrants.

Intensity Of Rivalry

The industrial gases market is highly competitive, with several established players competing for market share. Linde plc faces intense competition from rivals such as Air Products, Praxair, and Air Liquide, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.84%
Debt Cost 3.95%
Equity Weight 66.16%
Equity Cost 8.35%
WACC 6.86%
Leverage 51.15%

11. Quality Control: Linde plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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HeidelbergCement

A-Score: 5.8/10

Value: 4.7

Growth: 5.6

Quality: 5.9

Yield: 4.4

Momentum: 9.5

Volatility: 5.0

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Air Liquide

A-Score: 5.5/10

Value: 2.2

Growth: 4.8

Quality: 6.5

Yield: 4.4

Momentum: 5.0

Volatility: 10.0

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Linde

A-Score: 5.0/10

Value: 1.6

Growth: 5.9

Quality: 6.6

Yield: 3.1

Momentum: 3.0

Volatility: 10.0

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EMS-Chemie

A-Score: 4.5/10

Value: 1.4

Growth: 2.7

Quality: 8.6

Yield: 2.5

Momentum: 2.0

Volatility: 10.0

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Sika

A-Score: 4.4/10

Value: 3.4

Growth: 5.7

Quality: 6.0

Yield: 2.5

Momentum: 1.0

Volatility: 8.0

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Givaudan

A-Score: 4.2/10

Value: 1.1

Growth: 5.0

Quality: 6.0

Yield: 3.8

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

345.0$

Current Price

345$

Potential

-0.00%

Expected Cash-Flows