LIN – Market expectations are for record-high Uniform ROA, but management may have concerns about their pipeline, productivity, and working capital

• Linde plc (LIN:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 35.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their project pipeline progress, productivity gains, and working capital performance.
  
  
• Specifically, management may be overstating their potential in the clean energy market, the competitive advantage provided by their engineering business, and the capacity of digitalization to boost productivity. They may also lack confidence in their ability to control planned capex and sustain working capital performance. Finally, management may have concerns about their employees in India, progress in their project pipeline, and the distributor model in the APAC market