Orin
LINNasdaq·Chemicals - Specialty

Linde plc LIN

Market cap $217.8BP/E 30.2× trailingGross margin 37.6%Reports Fri 30 Oct, before the open
$470.73
+1.01 (+0.22%)live 09:35 ET
52-wk $387.78 – $548.20
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

Linde's fundamentals remain best-in-class—FY2025 gross margin expanded to 43.3% with EPS of $14.59 and a record $8.1B sale-of-gas backlog reported in Q2 2026—but the stock trades at $481 with a P/E of 30.9x and a GuruFocus DCF pegging intrinsic value at roughly $335, leaving limited margin of safety. Technicals have deteriorated since the prior buy call: the stock sits below its 50-day MA of $508.78 with bearish MACD (line -8.94 below signal -8.37) and RSI at 39.8, while insiders have been net sellers over 24 months (-$31.7M net value).

The combination of full valuation, weak momentum, and rising debt ($27.0B in FY2025 vs $22.6B in FY2024) argues for patience rather than chasing at these levels.

What could go wrong

  • Valuation compression. P/E of 30.9x and DCF intrinsic value of ~$335 vs price of $483 suggest meaningful downside if growth disappoints or rates rise.
  • Rising leverage and capex. Total debt rose to $26.99B in FY2025 from $22.61B in FY2024 while capex surged to $5.26B, compressing FCF margin to 14.97% from 16.8% in FY2023.
  • Insider distribution. Net insider selling of $31.7M over 24 months with 93 dispositions vs 99 acquisitions; recent director purchase of only 100 shares is token.
  • Technical breakdown. Stock trading below 50-day MA of $508.78 with MACD histogram negative; a break below the 200-day MA of $476.55 could trigger further selling.

What would change my mind

Break below 200-day MA. Daily close below $476.55 on above-average volumebearish
Backlog conversion and project starts. Linde successfully starts the 20+ projects representing ~$1.3B investment in H2 2026 with margin accretionbullish
Margin trajectory. Gross margin sustains above 43% in upcoming quarters, confirming pricing powerbullish
FCF deterioration. Free cash flow declines further as capex remains elevated above $5B annuallybearish

Where this comes from: FMP FY2025 annual + derived_metrics · Q2 2026 earnings call news (MarketBeat, 2026-07-31) · peer_relative composite · GuruFocus news, 2026-08-17. Orin's read on LIN; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$15.7B0.3% of fund
State Street$10.6B0.3% of fund
Capital Research Global Investors$9.0B1.3% of fund
Invesco$8.0B0.6% of fund
Vanguard Portfolio Management$6.5B0.3% of fund
Geode Capital Management$6.2B0.3% of fund

132 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 192 Form 4 filings, net −$31.7M. Of the 50 on hand, 1 was an open-market purchase and 5 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Basic Materials
MetricNowOwn medianSector
P/E30.2×32.3×29.8×
EV/EBITDA17.9×17.6×
P/S6.13×5.85×
P/B5.6×5.0×

Its P/E sits 20th percentile of its own last 5 years (−0.81σ from its own mean).

What the price assumes

18.0%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $5.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

28 firms · 2026-09-23
Consensus target

$563

$525$612 · +20% against today's price

How they rate it
  • 25 buy or overweight
  • 3 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 30.8× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
LINLinde plc$217B30.2×17.9×37.6%20.4%19%
APDAir Products and Chemicals, Inc.$64B62.5×32.1%-0.4%-0%
AVNTAvient Corporation$4B22.0×11.5×32.2%5.2%7%
ECLEcolab Inc.$78B36.9×25.9×44.1%12.6%21%
ESIElement Solutions Inc$9B48.2×27.8×38.4%5.7%7%
FULH.B. Fuller Company$3B14.7×9.1×32.5%5.3%9%
HWKNHawkins, Inc.$3B31.9×16.2×22.3%7.3%15%
SHWThe Sherwin-Williams Company$79B29.8×20.9×49.1%11.0%62%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 2.1% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 22.4×FY25 29.1×

What its sector has traded at

Basic Materials
FY14 23.8×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $470.73
52-week range$388 – $548
Analyst targets$525 – $612
At own 5y-median P/E (32×)$503
At 5y P/E range (29–47×)$448 – $728
At sector P/E (30×)$464

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.