LINCOLN ELECTRIC HOLDINGS (LECO) Fundamental Analysis & Valuation

NASDAQ:LECO • US5339001068

Current stock price

260 USD
-3.17 (-1.2%)
At close:
260 USD
0 (0%)
After Hours:

This LECO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. LECO Profitability Analysis

1.1 Basic Checks

  • LECO had positive earnings in the past year.
  • In the past year LECO had a positive cash flow from operations.
  • Each year in the past 5 years LECO has been profitable.
  • In the past 5 years LECO always reported a positive cash flow from operatings.
LECO Yearly Net Income VS EBIT VS OCF VS FCFLECO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.78%, LECO belongs to the top of the industry, outperforming 93.89% of the companies in the same industry.
  • LECO has a Return On Equity of 35.42%. This is amongst the best in the industry. LECO outperforms 96.18% of its industry peers.
  • LECO has a better Return On Invested Capital (19.72%) than 95.42% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LECO is significantly above the industry average of 10.00%.
Industry RankSector Rank
ROA 13.78%
ROE 35.42%
ROIC 19.72%
ROA(3y)14.39%
ROA(5y)13.74%
ROE(3y)37.4%
ROE(5y)37.97%
ROIC(3y)20.71%
ROIC(5y)20.57%
LECO Yearly ROA, ROE, ROICLECO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • LECO's Profit Margin of 12.30% is amongst the best of the industry. LECO outperforms 80.92% of its industry peers.
  • In the last couple of years the Profit Margin of LECO has grown nicely.
  • LECO has a Operating Margin of 17.76%. This is amongst the best in the industry. LECO outperforms 82.44% of its industry peers.
  • In the last couple of years the Operating Margin of LECO has grown nicely.
  • Looking at the Gross Margin, with a value of 36.34%, LECO is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
  • LECO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.76%
PM (TTM) 12.3%
GM 36.34%
OM growth 3Y1.99%
OM growth 5Y7.37%
PM growth 3Y-0.69%
PM growth 5Y9.64%
GM growth 3Y2.16%
GM growth 5Y2.04%
LECO Yearly Profit, Operating, Gross MarginsLECO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. LECO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LECO is creating value.
  • LECO has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, LECO has less shares outstanding
  • LECO has a better debt/assets ratio than last year.
LECO Yearly Shares OutstandingLECO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
LECO Yearly Total Debt VS Total AssetsLECO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • LECO has an Altman-Z score of 7.34. This indicates that LECO is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.34, LECO belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
  • LECO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as LECO would need 2.42 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 2.42, LECO is doing good in the industry, outperforming 76.34% of the companies in the same industry.
  • A Debt/Equity ratio of 0.88 indicates that LECO is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.88, LECO is not doing good in the industry: 76.34% of the companies in the same industry are doing better.
  • Even though the debt/equity ratio score it not favorable for LECO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 2.42
Altman-Z 7.34
ROIC/WACC1.92
WACC10.27%
LECO Yearly LT Debt VS Equity VS FCFLECO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

  • LECO has a Current Ratio of 1.82. This is a normal value and indicates that LECO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.82, LECO is doing worse than 61.83% of the companies in the same industry.
  • A Quick Ratio of 1.16 indicates that LECO should not have too much problems paying its short term obligations.
  • LECO's Quick ratio of 1.16 is in line compared to the rest of the industry. LECO outperforms 42.75% of its industry peers.
  • LECO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.16
LECO Yearly Current Assets VS Current LiabilitesLECO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. LECO Growth Analysis

3.1 Past

  • LECO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.47%.
  • LECO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.00% yearly.
  • LECO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
  • Measured over the past years, LECO shows a quite strong growth in Revenue. The Revenue has been growing by 9.78% on average per year.
EPS 1Y (TTM)6.47%
EPS 3Y6.15%
EPS 5Y19%
EPS Q2Q%3.11%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y4.02%
Revenue growth 5Y9.78%
Sales Q2Q%5.55%

3.2 Future

  • Based on estimates for the next years, LECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.31% on average per year.
  • Based on estimates for the next years, LECO will show a small growth in Revenue. The Revenue will grow by 6.61% on average per year.
EPS Next Y11.96%
EPS Next 2Y10.72%
EPS Next 3Y9.3%
EPS Next 5Y13.31%
Revenue Next Year6.07%
Revenue Next 2Y5.63%
Revenue Next 3Y5.15%
Revenue Next 5Y6.61%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LECO Yearly Revenue VS EstimatesLECO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B 5B
LECO Yearly EPS VS EstimatesLECO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

More info and screens

Find the best growth stocksShow best growing peers

3

4. LECO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.32, which means the current valuation is very expensive for LECO.
  • LECO's Price/Earnings is on the same level as the industry average.
  • LECO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
  • Based on the Price/Forward Earnings ratio of 23.51, the valuation of LECO can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LECO is on the same level as its industry peers.
  • LECO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.32
Fwd PE 23.51
LECO Price Earnings VS Forward Price EarningsLECO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LECO is on the same level as its industry peers.
  • LECO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LECO is cheaper than 62.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.68
EV/EBITDA 17.75
LECO Per share dataLECO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LECO does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of LECO may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)1.38
EPS Next 2Y10.72%
EPS Next 3Y9.3%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. LECO Dividend Analysis

5.1 Amount

  • LECO has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
  • LECO's Dividend Yield is a higher than the industry average which is at 1.07.
  • Compared to the average S&P500 Dividend Yield of 1.81, LECO is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.2%

5.2 History

  • On average, the dividend of LECO grows each year by 9.05%, which is quite nice.
  • LECO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LECO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.05%
Div Incr Years25
Div Non Decr Years25
LECO Yearly Dividends per shareLECO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 32.32% of the earnings are spent on dividend by LECO. This is a low number and sustainable payout ratio.
  • LECO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.32%
EPS Next 2Y10.72%
EPS Next 3Y9.3%
LECO Yearly Income VS Free CF VS DividendLECO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
LECO Dividend Payout.LECO Dividend Payout, showing the Payout Ratio.LECO Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

LECO Fundamentals: All Metrics, Ratios and Statistics

LINCOLN ELECTRIC HOLDINGS

NASDAQ:LECO (4/24/2026, 8:00:02 PM)

After market: 260 0 (0%)

260

-3.17 (-1.2%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-12
Earnings (Next)04-30
Inst Owners80.59%
Inst Owner Change0.54%
Ins Owners1.42%
Ins Owner Change1.54%
Market Cap14.25B
Revenue(TTM)4.23B
Net Income(TTM)520.53M
Analysts72.94
Price Target296.19 (13.92%)
Short Float %1.74%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 1.2%
Yearly Dividend3.03
Dividend Growth(5Y)9.05%
DP32.32%
Div Incr Years25
Div Non Decr Years25
Ex-Date06-30
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.05%
Min EPS beat(2)-0.08%
Max EPS beat(2)2.18%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-5.1%
Max EPS beat(4)10.19%
EPS beat(8)6
Avg EPS beat(8)4.37%
EPS beat(12)10
Avg EPS beat(12)4.54%
EPS beat(16)13
Avg EPS beat(16)5.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)2.51%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
Revenue beat(12)4
Avg Revenue beat(12)-1.81%
Revenue beat(16)7
Avg Revenue beat(16)-1.05%
PT rev (1m)-5.4%
PT rev (3m)10.69%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 26.32
Fwd PE 23.51
P/S 3.37
P/FCF 26.68
P/OCF 21.56
P/B 9.7
P/tB 42.84
EV/EBITDA 17.75
EPS(TTM)9.88
EY3.8%
EPS(NY)11.06
Fwd EY4.25%
FCF(TTM)9.74
FCFY3.75%
OCF(TTM)12.06
OCFY4.64%
SpS77.22
BVpS26.81
TBVpS6.07
PEG (NY)2.2
PEG (5Y)1.38
Graham Number77.202 (-70.31%)
Profitability
Industry RankSector Rank
ROA 13.78%
ROE 35.42%
ROCE 26.65%
ROIC 19.72%
ROICexc 22.01%
ROICexgc 38.49%
OM 17.76%
PM (TTM) 12.3%
GM 36.34%
FCFM 12.62%
ROA(3y)14.39%
ROA(5y)13.74%
ROE(3y)37.4%
ROE(5y)37.97%
ROIC(3y)20.71%
ROIC(5y)20.57%
ROICexc(3y)23.89%
ROICexc(5y)23.31%
ROICexgc(3y)41.53%
ROICexgc(5y)39.12%
ROCE(3y)27.12%
ROCE(5y)27.08%
ROICexgc growth 3Y1.88%
ROICexgc growth 5Y9.27%
ROICexc growth 3Y-0.17%
ROICexc growth 5Y5.28%
OM growth 3Y1.99%
OM growth 5Y7.37%
PM growth 3Y-0.69%
PM growth 5Y9.64%
GM growth 3Y2.16%
GM growth 5Y2.04%
F-Score6
Asset Turnover1.12
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 2.42
Debt/EBITDA 1.52
Cap/Depr 128.85%
Cap/Sales 3%
Interest Coverage 12.78
Cash Conversion 77.76%
Profit Quality 102.63%
Current Ratio 1.82
Quick Ratio 1.16
Altman-Z 7.34
F-Score6
WACC10.27%
ROIC/WACC1.92
Cap/Depr(3y)121.99%
Cap/Depr(5y)107.02%
Cap/Sales(3y)2.69%
Cap/Sales(5y)2.38%
Profit Quality(3y)103.95%
Profit Quality(5y)97.45%
High Growth Momentum
Growth
EPS 1Y (TTM)6.47%
EPS 3Y6.15%
EPS 5Y19%
EPS Q2Q%3.11%
EPS Next Y11.96%
EPS Next 2Y10.72%
EPS Next 3Y9.3%
EPS Next 5Y13.31%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y4.02%
Revenue growth 5Y9.78%
Sales Q2Q%5.55%
Revenue Next Year6.07%
Revenue Next 2Y5.63%
Revenue Next 3Y5.15%
Revenue Next 5Y6.61%
EBIT growth 1Y8.44%
EBIT growth 3Y6.09%
EBIT growth 5Y17.86%
EBIT Next Year24.47%
EBIT Next 3Y11.85%
EBIT Next 5Y12.34%
FCF growth 1Y10.74%
FCF growth 3Y19.7%
FCF growth 5Y12.82%
OCF growth 1Y10.38%
OCF growth 3Y19.92%
OCF growth 5Y13.48%

LINCOLN ELECTRIC HOLDINGS / LECO Fundamental Analysis FAQ

What is the fundamental rating for LECO stock?

ChartMill assigns a fundamental rating of 7 / 10 to LECO.


What is the valuation status for LECO stock?

ChartMill assigns a valuation rating of 3 / 10 to LINCOLN ELECTRIC HOLDINGS (LECO). This can be considered as Overvalued.


How profitable is LINCOLN ELECTRIC HOLDINGS (LECO) stock?

LINCOLN ELECTRIC HOLDINGS (LECO) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for LECO stock?

The Price/Earnings (PE) ratio for LINCOLN ELECTRIC HOLDINGS (LECO) is 26.32 and the Price/Book (PB) ratio is 9.7.


What is the financial health of LINCOLN ELECTRIC HOLDINGS (LECO) stock?

The financial health rating of LINCOLN ELECTRIC HOLDINGS (LECO) is 8 / 10.