Is LIN a good stock to buy? We came across a bullish thesis on Linde plc on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on LIN. Linde plc’s share was trading at $501.87 as of May 6th. LIN’s trailing and forward P/E were 32.73 and 27.62 respectively according to Yahoo Finance.
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Linde plc operates as an industrial gas company worldwide. LIN is mispriced by the market as a cyclical industrial gas commodity business despite operating more like a highly contracted infrastructure utility with durable, inflation-protected cash flows. Roughly 70% of its revenue is locked in through 15–20 year take-or-pay agreements, where customers co-locate facilities next to Linde plants, creating near-zero switching probability due to the infeasibility of relocating steel mills, semiconductor fabs, and large industrial users.
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This structure makes pricing power embedded, as industrial gases represent a negligible portion of customer input costs but are mission-critical, allowing Linde to pass through inflation seamlessly without demand destruction. On the financial side, Linde maintains a strong balance sheet, with borrowing cost of ~2.3% on long-duration fixed debt, reducing refinancing risk typical for capital-intensive industrial companies.
Free cash flow conversion remains above 80%, underscoring quality and predictability of earnings generation. Since the Praxair merger, synergies have expanded margins, with operating performance improving year after year since 2019, reinforcing durability of the combined platform. the company’s exposure to electronics and healthcare end markets provides structural secular growth independent of macroeconomic cycles, further strengthening the long-term compounding profile.
Comparisons to Air Products highlight contrast between focused execution and strategic distraction, with Linde demonstrating superior consistency and discipline. Despite this, the market applies a commodity multiple, underestimating contractual earnings and embedded visibility of cash flows. At current levels, Linde trades at a premium, but given its contract structure, balance sheet strength, and margin compounding trajectory, valuation appears justified with favorable risk-reward for long-term investors.
Previously, we covered a bullish thesis on Chart Industries, Inc. (GTLS) by LongTermValue Research in April 2025, which highlighted LNG storage leadership, strong order momentum, pricing power, and robust free cash flow expansion. GTLS’s stock price has appreciated by approximately 42.17% since our coverage. Variant_Invest shares a similar view but emphasizes Linde plc (LIN)’s long-term contracted revenue model, infrastructure-like cash flow stability, and structurally embedded pricing power through take-or-pay agreements.
Linde plc is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held LIN at the end of the fourth quarter which was 76 in the previous quarter. While we acknowledge the risk and potential of LIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LIN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
