LINCOLN ELECTRIC HOLDINGS (LECO) Fundamental Analysis & Valuation

NASDAQ:LECO • US5339001068

Current stock price

249.72 USD
-7.05 (-2.75%)
At close:
249.72 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.
  • LECO had positive earnings in each of the past 5 years.
  • 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

  • LECO's Return On Assets of 13.78% is amongst the best of the industry. LECO outperforms 93.13% of its industry peers.
  • 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's Return On Invested Capital of 19.72% is amongst the best of the industry. LECO outperforms 95.42% of its industry peers.
  • LECO had an Average Return On Invested Capital over the past 3 years of 20.71%. This is significantly above the industry average of 10.16%.
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

  • Looking at the Profit Margin, with a value of 12.30%, LECO belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.
  • LECO's Profit Margin has improved in the last couple of years.
  • LECO has a better Operating Margin (17.76%) than 82.44% of its industry peers.
  • LECO's Operating Margin has improved in the last couple of years.
  • LECO has a better Gross Margin (36.34%) than 66.41% of its industry peers.
  • In the last couple of years the Gross Margin of LECO has grown nicely.
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

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8

2. LECO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LECO is creating value.
  • The number of shares outstanding for LECO has been reduced compared to 1 year ago.
  • The number of shares outstanding for LECO has been reduced compared to 5 years ago.
  • 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 7.29. This indicates that LECO is financially healthy and has little risk of bankruptcy at the moment.
  • LECO's Altman-Z score of 7.29 is amongst the best of the industry. LECO outperforms 89.31% of its industry peers.
  • The Debt to FCF ratio of LECO is 2.42, which is a good value as it means it would take LECO, 2.42 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 2.42, LECO is doing good in the industry, outperforming 74.81% of the companies in the same industry.
  • LECO has a Debt/Equity ratio of 0.88. This is a neutral value indicating LECO is somewhat dependend on debt financing.
  • LECO has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: LECO underperforms 76.34% of its industry peers.
  • 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 7.29
ROIC/WACC2.06
WACC9.59%
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

  • A Current Ratio of 1.82 indicates that LECO should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.82, LECO is in line with its industry, outperforming 40.46% of the companies in the same industry.
  • LECO has a Quick Ratio of 1.16. This is a normal value and indicates that LECO is financially healthy and should not expect problems in meeting its short term obligations.
  • LECO has a Quick ratio (1.16) which is in line with 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

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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%.
  • Measured over the past years, LECO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.00% on average per year.
  • Looking at the last year, LECO shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
  • The Revenue has been growing by 9.78% on average over the past years. This is quite good.
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

  • LECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.31% yearly.
  • 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 Y11.73%
EPS Next 2Y10.58%
EPS Next 3Y9.27%
EPS Next 5Y13.31%
Revenue Next Year6.23%
Revenue Next 2Y5.77%
Revenue Next 3Y5.14%
Revenue Next 5Y6.61%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

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3

4. LECO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.28 indicates a quite expensive valuation of LECO.
  • The rest of the industry has a similar Price/Earnings ratio as LECO.
  • The average S&P500 Price/Earnings ratio is at 25.23. LECO is around the same levels.
  • The Price/Forward Earnings ratio is 22.62, which indicates a rather expensive current valuation of LECO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as LECO.
  • LECO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.28
Fwd PE 22.62
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

  • LECO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • LECO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 25.62
EV/EBITDA 17.54
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)2.15
PEG (5Y)1.33
EPS Next 2Y10.58%
EPS Next 3Y9.27%

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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 1.21%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.18, LECO pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.91, LECO is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.21%

5.2 History

  • The dividend of LECO is nicely growing with an annual growth rate of 9.05%!
  • LECO has paid a dividend for at least 10 years, which is a reliable track record.
  • LECO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.05%
Div Incr Years24
Div Non Decr Years24
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.
  • The dividend of LECO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.32%
EPS Next 2Y10.58%
EPS Next 3Y9.27%
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

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LECO Fundamentals: All Metrics, Ratios and Statistics

LINCOLN ELECTRIC HOLDINGS

NASDAQ:LECO (3/20/2026, 8:05:43 PM)

After market: 249.72 0 (0%)

249.72

-7.05 (-2.75%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-12
Earnings (Next)04-28
Inst Owners80.11%
Inst Owner Change3.22%
Ins Owners1.5%
Ins Owner Change1.41%
Market Cap13.69B
Revenue(TTM)4.23B
Net Income(TTM)520.53M
Analysts75.56
Price Target313.08 (25.37%)
Short Float %1.14%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
Yearly Dividend3.03
Dividend Growth(5Y)9.05%
DP32.32%
Div Incr Years24
Div Non Decr Years24
Ex-Date03-31
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)13.75%
PT rev (3m)17.1%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 25.28
Fwd PE 22.62
P/S 3.23
P/FCF 25.62
P/OCF 20.7
P/B 9.31
P/tB 41.14
EV/EBITDA 17.54
EPS(TTM)9.88
EY3.96%
EPS(NY)11.04
Fwd EY4.42%
FCF(TTM)9.75
FCFY3.9%
OCF(TTM)12.06
OCFY4.83%
SpS77.23
BVpS26.82
TBVpS6.07
PEG (NY)2.15
PEG (5Y)1.33
Graham Number77.21
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 7.29
F-Score6
WACC9.59%
ROIC/WACC2.06
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 Y11.73%
EPS Next 2Y10.58%
EPS Next 3Y9.27%
EPS Next 5Y13.31%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y4.02%
Revenue growth 5Y9.78%
Sales Q2Q%5.55%
Revenue Next Year6.23%
Revenue Next 2Y5.77%
Revenue Next 3Y5.14%
Revenue Next 5Y6.61%
EBIT growth 1Y8.44%
EBIT growth 3Y6.09%
EBIT growth 5Y17.86%
EBIT Next Year24.24%
EBIT Next 3Y11.74%
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 of LINCOLN ELECTRIC HOLDINGS (LECO) stock?

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


What is the profitability of LECO stock?

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


What is the earnings growth outlook for LINCOLN ELECTRIC HOLDINGS?

The Earnings per Share (EPS) of LINCOLN ELECTRIC HOLDINGS (LECO) is expected to grow by 11.73% in the next year.


How sustainable is the dividend of LINCOLN ELECTRIC HOLDINGS (LECO) stock?

The dividend rating of LINCOLN ELECTRIC HOLDINGS (LECO) is 7 / 10 and the dividend payout ratio is 32.32%.