NASDAQ · Basic Materials

Linde plc

LIN · Specialty Chemicals

$512.15

▼ -3.7 (-0.72%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 48.5%

Operating Margin 27.1%

Net Income Margin 21.1%

Fin. Health

F⤢

Years to Pay Off Debt 14.2 yrs

Working Capital vs Long-Term Debt -$22.5B

Working Capital -$2.6B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 6.14x

Cash Flow

C⤢

Free Cash Flow $898M

CapEx % of Net Income 72.3%

Owner Earnings $4.2B

Profitability

Gross Profit Margin 48.5%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 27.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 21.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 14.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$22.5B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$2.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $898M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 72.3%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $4.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Linde plc

Linde plc operates as an industrial gas company worldwide. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, and acetylene. The company also engages in designing and constructing of turnkey process plants for third-party customers, as well as for the gas businesses in various locations comprising air separation, hydrogen, synthesis, olefin, and natural gas plants. It serves healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics industries. The company operates in the United States, Brazil, Mexico, Canada, Germany, the Unted Kingdom, Eastern Europe, China, Australia, South Korea, And India. Linde plc was founded in 1879 and is based in Woking, the United Kingdom.

Market Data

Market Cap $236.8B

Enterprise Value $263.6B

P/E (TTM) 33.96

Dividend Yield 1.18%

Exchange NASDAQ

Key Margins

Gross Profit 48.5%

Operating Margin 27.1%

Net Margin 21.1%

Company Info

Sector Basic Materials

Industry Specialty Chemicals

Employees 65034

Country United Kingdom

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Linde plc at $512.15.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $512.15, the stock trades at a 493% premium to its Graham Number of $86.43. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	48.5%▲	48.1%
Operating Margin %	27.1%▲	26.8%
Net Income %	21.1%▲	17.5%
Diluted EPS	3.98▲	3.26

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$86.3B	$86.8B	N/A
Total Debt	$26.3B▼	$28.1B•	N/A
Working Capital	-$2.6B▼	-$1.9B•	N/A
Years to Pay Debt	14.17	18.35	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	$898M▼	$1.6B
Owner Earnings	$4.2B	$3.9B
CapEx % of Net Income	72.3%	95.3%

Income Statement

	2026	2025
Tax Effect Of Unusual Items	14,805	0
Tax Rate For Calcs	0	0
Normalized EBITDA	3,381,000	3,234,000
Total Unusual Items	63,000
Total Unusual Items Excluding Goodwill	63,000
Net Income From Continuing Operation Net Minority Interest	1,857,000	1,530,000
Reconciled Depreciation	951,000	950,000
Reconciled Cost Of Revenue	4,523,000	4,547,000
EBITDA	3,444,000	3,234,000
EBIT	2,493,000	2,284,000
Net Interest Income	-62,000	-64,000
Interest Expense	62,000	273,000
Normalized Income	1,808,805	1,530,000
Net Income From Continuing And Discontinued Operation	1,857,000	1,530,000
Total Expenses	6,405,000	6,412,000
Total Operating Income As Reported	2,439,000	2,018,000
Diluted Average Shares	466,319	468,702
Basic Average Shares	464,051	466,247
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,857,000	1,530,000
Net Income Common Stockholders	1,857,000	1,530,000
Net Income	1,857,000	1,530,000
Minority Interests	-43,000	-43,000
Net Income Including Noncontrolling Interests	1,900,000	1,573,000
Net Income Continuous Operations	1,900,000	1,573,000
Earnings From Equity Interest Net Of Tax	40,000	43,000
Tax Provision	571,000	481,000
Pretax Income	2,431,000	2,011,000
Other Income Expense	117,000	-277,000
Other Non Operating Income Expenses	54,000	153,000
Special Income Charges	63,000
Gain On Sale Of Business	63,000
Net Non Operating Interest Income Expense	-62,000	-64,000
Interest Expense Non Operating	62,000	273,000
Operating Income	2,376,000	2,352,000
Operating Expense	1,882,000	1,865,000
Depreciation Amortization Depletion Income Statement	951,000	950,000
Depreciation And Amortization In Income Statement	951,000	950,000
Research And Development	38,000	35,000
Selling General And Administration	893,000	880,000
Gross Profit	4,258,000	4,217,000
Cost Of Revenue	4,523,000	4,547,000
Total Revenue	8,781,000	8,764,000
Operating Revenue	8,781,000	8,764,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	28,167	27,086
Ordinary Shares Number	462,600	463,681
Share Issued	490,767	490,767
Net Debt	22,358,000	21,933,000
Total Debt	26,317,000	28,069,000
Tangible Book Value	-989,000	-1,553,000
Invested Capital	64,883,000	65,234,000
Working Capital	-2,640,000	-1,873,000
Net Tangible Assets	-989,000	-1,553,000
Capital Lease Obligations		1,080,000	986,000
Common Stock Equity	38,566,000	38,245,000
Total Capitalization	58,425,000	58,928,000
Total Equity Gross Minority Interest	40,092,000	39,741,000
Minority Interest	1,526,000	1,496,000
Stockholders Equity	38,566,000	38,245,000
Gains Losses Not Affecting Retained Earnings	-6,147,000	-6,233,000
Other Equity Adjustments	-6,147,000	-6,233,000
Treasury Stock	12,104,000	11,561,000
Retained Earnings	17,639,000	16,608,000
Additional Paid In Capital	39,177,000	39,430,000
Capital Stock	1,000	1,000
Common Stock	1,000	1,000
Total Liabilities Net Minority Interest	46,223,000	47,076,000
Total Non Current Liabilities Net Minority Interest	30,832,000	31,878,000
Other Non Current Liabilities	10,973,000	2,450,000
Derivative Product Liabilities		2,000	9,000
Employee Benefits		473,000	519,000
Non Current Pension And Other Postretirement Benefit Plans		473,000	519,000
Tradeand Other Payables Non Current		230,000	210,000
Non Current Deferred Liabilities		6,840,000	6,757,000
Long Term Debt And Capital Lease Obligation	19,859,000	21,502,000
Long Term Capital Lease Obligation		819,000	756,000
Long Term Debt	19,859,000	20,683,000
Long Term Provisions		381,000	365,000
Current Liabilities	15,391,000	15,198,000
Other Current Liabilities	5,106,000	1,269,000
Current Deferred Liabilities	1,168,000	1,231,000
Current Deferred Revenue	1,168,000	1,231,000
Current Debt And Capital Lease Obligation	6,458,000	6,567,000
Current Capital Lease Obligation		261,000	230,000
Current Debt	6,458,000	6,306,000
Other Current Borrowings	1,636,000	1,796,000
Line Of Credit	310,000	284,000
Commercial Paper	4,512,000	4,226,000
Pensionand Other Post Retirement Benefit Plans Current		41,000	37,000
Current Provisions		21,000	20,000
Payables And Accrued Expenses	2,659,000	6,069,000
Current Accrued Expenses		2,237,000	2,166,000
Interest Payable		310,000	227,000
Payables	2,659,000	3,832,000
Total Tax Payable		1,022,000	893,000
Accounts Payable	2,659,000	2,810,000
Total Assets	86,315,000	86,817,000
Total Non Current Assets	73,564,000	73,492,000
Other Non Current Assets	5,445,000	280,000
Defined Pension Benefit		1,298,000	1,106,000
Non Current Prepaid Assets		62,000	73,000
Non Current Deferred Assets		486,000	486,000
Non Current Deferred Taxes Assets		423,000	428,000
Non Current Note Receivables			28,000
Non Current Accounts Receivable		96,000	28,000
Financial Assets		10,000	4,000
Investments And Advances		2,123,000	2,236,000
Other Investments		108,000	106,000
Long Term Equity Investment		2,015,000	2,130,000
Goodwill And Other Intangible Assets	39,555,000	39,798,000
Other Intangible Assets	11,673,000	11,871,000
Goodwill	27,882,000	27,927,000
Net PPE	28,564,000	29,339,000
Accumulated Depreciation		-39,819,000	-33,944,000
Gross PPE		69,158,000	59,708,000
Construction In Progress		6,130,000	4,086,000
Other Properties		12,836,000	11,648,000
Machinery Furniture Equipment		45,173,000	39,574,000
Buildings And Improvements		3,831,000	3,355,000
Land And Improvements		1,188,000	1,045,000
Current Assets	12,751,000	13,325,000
Other Current Assets	1,071,000	97,000
Hedging Assets Current		107,000	302,000
Prepaid Assets		546,000	579,000
Inventory	2,079,000	2,055,000
Finished Goods	1,144,000	1,179,000
Work In Process	390,000	346,000
Raw Materials	545,000	530,000
Receivables	5,642,000	5,464,000
Other Receivables	321,000	269,000
Taxes Receivable		229,000	177,000
Accounts Receivable	5,321,000	4,966,000
Allowance For Doubtful Accounts Receivable	-599,000	-581,000
Gross Accounts Receivable	5,920,000	5,547,000
Cash Cash Equivalents And Short Term Investments	3,959,000	5,056,000
Cash And Cash Equivalents	3,959,000	5,056,000

Cash Flow

	2026	2025
Free Cash Flow	898,000	1,572,000
Repurchase Of Capital Stock	-807,000	-1,390,000
Repayment Of Debt	-733,000	-624,000
Issuance Of Debt	58,000	2,084,000
Issuance Of Capital Stock	3,000	3,000
Capital Expenditure	-1,342,000	-1,458,000
End Cash Position	3,959,000	5,056,000
Beginning Cash Position	5,056,000	4,509,000
Effect Of Exchange Rate Changes	15,000	-4,000
Changes In Cash	-1,112,000	551,000
Financing Cash Flow	-1,968,000	-1,018,000
Cash Flow From Continuing Financing Activities	-1,968,000	-1,018,000
Net Other Financing Charges	-87,000	73,000
Cash Dividends Paid	-741,000	-698,000
Common Stock Dividend Paid	-741,000	-698,000
Net Common Stock Issuance	-804,000	-1,387,000
Common Stock Payments	-807,000	-1,390,000
Common Stock Issuance	3,000	3,000
Net Issuance Payments Of Debt	-336,000	994,000
Net Short Term Debt Issuance	339,000	-466,000
Net Long Term Debt Issuance	-675,000	1,460,000
Long Term Debt Payments	-733,000	-624,000
Long Term Debt Issuance	58,000	2,084,000
Investing Cash Flow	-1,384,000	-1,461,000
Cash Flow From Continuing Investing Activities	-1,384,000	-1,461,000
Net Other Investing Changes	-1,000	5,000
Net Business Purchase And Sale	-41,000	-8,000
Sale Of Business	112,000	11,000
Purchase Of Business	-153,000	-19,000
Capital Expenditure Reported	-1,342,000	-1,458,000
Operating Cash Flow	2,240,000	3,030,000
Cash Flow From Continuing Operating Activities	2,240,000	3,030,000
Change In Working Capital	-609,000	221,000
Change In Other Working Capital	-183,000	-96,000
Change In Payables And Accrued Expense	35,000	-83,000
Change In Prepaid Assets	-52,000	59,000
Change In Inventory	-48,000	84,000
Change In Receivables	-361,000	257,000
Changes In Account Receivables	-361,000	257,000
Other Non Cash Items	-51,000	145,000
Stock Based Compensation	41,000	31,000
Deferred Tax	8,000	-7,000
Deferred Income Tax	8,000	-7,000
Depreciation Amortization Depletion	951,000	950,000
Depreciation And Amortization	951,000	950,000
Net Income From Continuing Operations	1,900,000	1,690,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $8.1B ▲ $8.8B +8.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 48.8% ▲ 48.5% -0.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 29.3% ▲ 27.1% -2.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 20.6% ▲ 21.1% +0.5pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$8.8B/qtr (≈$35.1B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.83x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$898M

vs Positive

Operating Cash Flow

$2.2B

Latest quarter · Buffett's cash reality check

ROIC

2.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

5.9x

Net Assets: $40.1B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Specialty Chemicals. You can manually compare LIN against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.25%

Low — management has little skin in the game

Return on Equity (ROE)

4.8%

Weak — poor returns on equity

Return on Assets (ROA)

2.2%

Fair — average asset utilization

Share Buybacks (Latest Year)

$4.6B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-6.2% YoY

Debt is declining — management is deleveraging

Leadership Team

Sanjiv Lamba

CEO & Chairman of the Board

Age 61

Pay: $4,960,158

0.267% of net income

Matthew White

Executive VP & CFO

Age 53

Pay: $2,373,314

0.128% of net income

Sean Durbin

COO & EVP

Age 54

Pay: $1,914,226

0.103% of net income

Juan Pelaez

Vice President of Investor Relations

Moloy Banerjee

President of ASEAN & South Asia

Age 59

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.60%	36,872,272
Vanguard Capital Management LLC	6.24%	30,233,070
State Street Corporation	4.05%	19,625,129
Capital Research Global Investors	3.31%	16,051,934
Vanguard Portfolio Management LLC	2.53%	12,289,282
Geode Capital Management, LLC	2.44%	11,832,240
Price (T.Rowe) Associates Inc	2.03%	9,846,511
FMR, LLC	1.86%	8,997,328

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.73

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.66x

Conservative balance sheet — low financial risk

Current Ratio

0.83x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $387.78 Current: $512.15 High: $525.87

Currently at 90% of 52-week range

Linde plc

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis