Linde plc (NASDAQ:LIN): Fundamentals Remain Strong Despite Recent Price Slump

Linde plc (NASDAQ:LIN), a leading industrial gases and engineering company, has seen its stock price decline recently. However, a closer look at the company's fundamentals reveals a strong underlying performance that may not be fully reflected in the current share price. This article explores the key fundamentals supporting Linde's stock and discusses whether the market might be underestimating the company's prospects.



Strong Revenue and Earnings Growth

Linde's revenue and earnings have shown consistent growth over the past few years. In 2023, the company's revenue was $32.85 billion, a decrease of 1.53% compared to 2022. However, this decrease was primarily due to currency headwinds, as revenue grew by 2.01% when excluding currency effects. Earnings per share (EPS) also grew by 24.05% in 2023, driven by increased pricing and cost management initiatives. These growth figures indicate that Linde's core business remains robust and resilient.

High Dividend Yield and History of Increases

Linde offers a dividend yield of 1.28%, which is relatively high compared to other stocks in the specialty chemicals sector. The company has a history of increasing its dividend, with a 9.02% increase in 2023. This consistent dividend growth, along with the high yield, makes Linde an attractive option for income-oriented investors.

Positive Analyst Ratings and Price Targets

As of January 2025, 13 analysts have an average rating of "Buy" for Linde stock, with a 12-month price target of $494.00. This indicates that analysts expect Linde's stock price to increase by 13.30% in the next year. The consensus rating of "Buy" and the average price target suggest that analysts have a positive outlook on Linde's future performance.

Sustainability Focus and Market Opportunities

Linde is committed to sustainability and has been included in the Dow Jones Sustainability™ World Index for the twenty-second consecutive year. This focus on sustainability can attract environmentally conscious investors and position the company well for long-term growth. Additionally, Linde's diverse end markets, including chemicals & energy, food & beverage, and healthcare, provide numerous growth opportunities.



Conclusion: Linde's Fundamentals Remain Strong

Despite the recent price slump, Linde plc's fundamentals remain strong, supported by consistent revenue and earnings growth, a high dividend yield with a history of increases, positive analyst ratings, and a commitment to sustainability. While the market may be temporarily undervaluing Linde's stock, the company's robust fundamentals suggest that it is well-positioned for long-term growth. Investors should consider Linde's strong fundamentals when evaluating the company's stock price and potential for future gains.