Linde LIN
Linde plc is the world's largest industrial gases and engineering company, supplying oxygen, nitrogen, hydrogen, and other gases to sectors such as healthcare, electronics, and manufacturing, with a model of long-term contracts and high revenue recurrence. Linde maintains a high-quality defensive profile with an operating margin of 28.12% and ROE of 18.40%, although its demanding valuation (P/E 30.3, EV/EBITDA 17.46) and free cash flow conversion of 30.10% limit the appeal at these prices.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Linde plc is the world's largest industrial gases and engineering company, supplying oxygen, nitrogen, hydrogen, and other gases to sectors such as healthcare, electronics, and manufacturing, with a model of long-term contracts and high revenue recurrence. Linde maintains a high-quality defensive profile with an operating margin of 28.12% and ROE of 18.40%, although its demanding valuation (P/E 30.3, EV/EBITDA 17.46) and free cash flow conversion of 30.10% limit the appeal at these prices.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.6 |
| Quality / Moat | 6.5 |
| Valuation | 3.7 |
| Growth | 6.5 |
| Dividend | 6.1 |
| Momentum | 3.8 |
| Risk & Context | 7.5 |
OVERALL SCORE: 5.8/10
Context and risks
Linde is domiciled in the UK, with moderate governance risk. Its global industrial gases business has no material exposure to current macro factors (rates, oil, geopolitics) beyond the general effect on long-duration valuation, already captured by the engine.
News considered in the analysis
- Linde (LIN) Draws Valuation Attention, Is The Premium Already Too Rich? — Artículo de análisis que cuestiona si la prima de valoración de Linde está justificada; refleja el PER de 30.3 y EV/EBITDA de 17.46, pero no aporta información nueva sobre el negocio.
- Linde Has Quietly Compounded for Years. These 3 Stocks Share Its Stickiest Advantage — Reconoce el foso competitivo de Linde por sus contratos a largo plazo y recurrencia de ingresos; refuerza la calidad del negocio pero es información ya conocida y descontada.
- Is Bloom Energy Stock's Drop A Chance To Buy? — Noticia sobre Bloom Energy, un competidor en el sector de pilas de combustible; sin impacto directo en Linde.
- FCEL Targets Hydrogen Growth With Versatile Tri-gen Platform — Noticia sobre FuelCell Energy, otro competidor en hidrógeno; sin impacto directo en Linde.
- Why Did Bloom Energy Stock More Than Triple In A Year? — Análisis de la revalorización de Bloom Energy; sin impacto directo en Linde.
Verdict: Hold; business quality justifies the premium, but current valuation and weak cash conversion offer no margin of safety for buying.
Main risk: Free cash flow conversion of 30.10% is low for the sector, suggesting reported growth is not translating into cash; if persistent, it could pressure the ability to maintain the dividend and investment.
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