Resources

LIN:DEU – Market expectations are for record-high Uniform ROA, but management has concerns about efficiency, margins, and growth

April 18, 2018

      • Linde Aktiengesellschaft (LIN:DEU)currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 1.6x Uniform P/B, suggesting fairly bullish expectations for the firm. However, management has concerns about efficiency, margins, and growth
      • Specifically, management may be exaggerating their satisfaction with the operational improvements they have seen as a result of automation in their cylinder filling plants, and may lack confidence in the sustainability of further investment wins from electronic customers in Asia. Furthermore, they may lack confidence in the sustainability of operating profit margin improvements in their Gases segment, and may be downplaying concerns about declining comparable growth in their Healthcare segment. In addition, they may lack confidence in the sustainability of growth in their Bulk segment driven by growth in Asia, and may be concerned about their ability to increase the margins of all their operating segments in 2018

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email client.relations@valens-research.com.

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683