Arranging FTSE 100 corporations by their market capitalisations, AstraZeneca comes out on high with a £158.5bn valuation. As such, traders could be forgiven for pondering the pharma titan takes the crown as Britain’s largest agency.

However there’s one UK-based firm, not listed within the FTSE 100, that has a slightly greater valuation of £159.6bn. It’s the world’s largest industrial fuel provider, Linde (NASDAQ:LIN). Though legally domiciled in Eire, the group’s principal government workplace is in Woking, only a stone’s throw from London.

So, what’s this multinational’s enterprise mannequin? And may traders think about shopping for its shares immediately?

Gasoline big

Linde produces and distributes an intensive vary of commercial gases, together with oxygen, nitrogen, argon, hydrogen, carbon dioxide, and helium. It additionally provides ancillary merchandise, reminiscent of cell fuel cylinders, security gear, and freezers.

The corporate’s prospects are diversified throughout a number of sectors. From engineering to healthcare to electronics, the agency’s gases have numerous functions. What’s extra, its operations span over 100 international locations worldwide.

It’s honest to say these attributes make Linde a high-quality defensive inventory, immune to fluctuations in market cycles. That mentioned, it’s not fully resistant to world financial downturns since falling demand from the manufacturing trade can nonetheless harm the underside line.

Hovering share price

Prior to now 5 years, the FTSE 100 has superior 43%, however the Linde share price has delivered a a lot stronger return of 138%. Including to its funding enchantment, the corporate has a 28-year historical past of constant dividend progress. The inventory at present yields 1.34%.

One factor I actually like about Linde shares is the group’s aggressive benefit. Its main place out there, immense distribution infrastructure, and heavy funding in R&D imply the group advantages from economies of scale that smaller rivals can’t match. A 2018 merger with Praxair helped to widen the corporate’s already substantial moat.

There are additionally engaging progress alternatives for the 145-year-old agency. Hydrogen‘s a good example. Due to its low-carbon qualities, it’s a key ingredient within the world effort to realize net-zero emissions. With over 200 hydrogen refuelling stations to its title, Linde has the largest put in base on the earth.

A sticking level is the valuation. Trading at a price-to-earnings (P/E) ratio of 33.1 and a ahead P/E of 27.3, it’s not an inexpensive inventory. In contrast, the typical a number of for FTSE 100 shares is 16.3. Consequently, there’s strain on Linde to carry out and little room for error. Any disappointing outcomes may deal a nasty blow to the share price.

Fortuitously, earnings for FY24 gave shareholders some causes to be cheerful. A 7% uptick in adjusted working revenue to $9.7bn and a 9% enhance in earnings-per-share (EPS) to $15.51 had been notable successes. Nevertheless, gross sales had been flat in comparison with the prior 12 months at $33bn. It’s value monitoring the subsequent outcomes carefully. I wouldn’t wish to see that determine backtrack gear.

A inventory to contemplate?

General, I feel Linde shares are properly value contemplating as a portfolio addition. The corporate is usually neglected by UK traders who concentrate on the FTSE 100 with out realising there’s a British titan past the ranks of the index.

The excessive valuation is an unlucky downside, however typically it’s value fascinated by paying a premium for high quality.