LECO Stock Analysis: Lincoln Electric Holdings | NASDAQ
Tools & Accessories | NASDAQ, USA | Market Cap: 13.709m USD | 12M Return: 8.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 82.0M
EPS Trend: 82.3%
Qual. Beats: 0
Rev. Trend: 65.2%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lincoln Electric Holdings (LECO) is a U.S.-based industrial manufacturer specializing in welding, cutting, and brazing products and related equipment. The company operates through three reporting segments: Americas Welding, International Welding, and The Harris Products Group, reflecting a split between its core domestic welding operations, its overseas businesses, and its Harris Products affiliate focused on specialty alloys and related consumables.
Its product portfolio spans arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, brazing and soldering filler metals, and specialty gas regulators. Beyond welding, LECO offers mobile power solutions (vehicle-mounted compressors, generators, welders, and electrified power equipment), automated welding and material handling systems, and proprietary manufacturing execution system software. It also develops autonomous guided vehicles and mobile robots, positioning part of the business in industrial automation alongside its traditional welding consumables and equipment lines.
Lincoln Electric serves a broad set of end markets, including general fabrication, oil and gas, power generation, process industries, automotive and transportation, construction and infrastructure, heavy fabrication, shipbuilding, and maintenance and repair. Products reach customers through direct sales to OEMs, manufacturers, and integrators, as well as through industrial distributors, retailers, and agents - a multi-channel model typical of large industrial machinery suppliers.
The company is classified in the GICS Industrials sector, specifically within Industrial Machinery & Components, and is considered a large-cap stock. Founded in 1895 and headquartered in Cleveland, Ohio, Lincoln Electric has a long operating history in the welding consumables and equipment industry, with an international footprint that complements its domestic Americas Welding segment.
- US manufacturing PMI swing drives Americas Welding volumes
- Steel and raw material costs pressure gross margins
- Acquisitions in automation and specialty alloys expand margins
| Net Income: 553.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 0.01 > 1.0 |
| NWC/Revenue: 19.48% < 20% (prev 17.08%; Δ 2.41% < -1%) |
| CFO/TA 0.17 > 3% & CFO 662.0m > Net Income 553.6m |
| Net Debt (1.32b) to EBITDA (887.3m): 1.49 < 3 |
| Current Ratio: 1.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.1m) vs 12m ago -1.55% < -2% |
| Gross Margin: 36.02% > 18% (prev 36.50%; Δ -0.48% > 0.5%) |
| Asset Turnover: 118.8% > 50% (prev 110.0%; Δ 8.80% > 0%) |
| Interest Coverage Ratio: 13.61 > 6 (EBIT TTM 785.0m / Interest Expense TTM 57.7m) |
| A: 0.23 (Total Current Assets 1.76b - Total Current Liabilities 888.1m) / Total Assets 3.81b |
| B: 1.19 (Retained Earnings 4.55b / Total Assets 3.81b) |
| C: 0.21 (EBIT TTM 785.0m / Avg Total Assets 3.77b) |
| D: 0.69 (Book Value of Equity 1.55b / Total Liabilities 2.26b) |
| Altman-Z'' = 7.51 = AAA |
| DSRI: 0.97 (Receivables 586.3m/554.3m, Revenue 4.48b/4.10b) |
| GMI: 1.01 (GM 36.50% / 36.02%) |
| AQI: 0.96 (AQ_t 0.35 / AQ_t-1 0.36) |
| SGI: 1.09 (Revenue 4.48b / 4.10b) |
| TATA: -0.03 (NI 553.6m - CFO 662.0m) / TA 3.81b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of August 02, 2026, the stock is trading at USD 261.31 with a total of 709,701 shares traded. Over the past week, the price has changed by +3.91%, over one month by -1.58%, over three months by -1.10% and over the past year by +8.68%.
Current recommended Stop Loss: 244.30 (which is 6.5% or 1.9 ATR below the current price).
Lincoln Electric Holdings has received a consensus analysts rating of 3.90. Therefore, it is recommended to buy LECO.
- StrongBuy: 5
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 297 | 13.7% |
P/E Trailing = 26.5909
P/E Forward = 23.8095
P/S = 3.1514
P/B = 9.3445
P/EG = 1.6903
Revenue TTM = 4.48b USD
EBIT TTM = 785.0m USD
EBITDA TTM = 887.3m USD
Long Term Debt = 1.15b USD (from longTermDebt, last quarter)
Short Term Debt = 143.8m USD (from shortTermDebt, last fiscal year)
Debt = 1.56b USD (from shortLongTermDebtTotal, last quarter) + Leases 410.7m
Net Debt = 1.32b USD (calculated: Debt 1.56b - CCE 242.4m)
Enterprise Value = 15.0b USD (13.7b + Debt 1.56b - CCE 242.4m)
Interest Coverage Ratio = 13.61 (Ebit TTM 785.0m / Interest Expense TTM 57.7m)
EV/FCF = 29.07x (Enterprise Value 15.0b / FCF TTM 516.9m)
FCF Yield = 3.44% (FCF TTM 516.9m / Enterprise Value 15.0b)
FCF Margin = 11.54% (FCF TTM 516.9m / Revenue TTM 4.48b)
Net Margin = 12.36% (Net Income TTM 553.6m / Revenue TTM 4.48b)
Gross Margin = 36.02% ((Revenue TTM 4.48b - Cost of Revenue TTM 2.87b) / Revenue TTM)
Gross Margin QoQ = 36.81% (prev 35.59%)
Tobins Q-Ratio = 3.94 (Enterprise Value 15.0b / Total Assets 3.81b)
Interest Expense / Debt = 3.70% (Interest Expense 57.7m / Debt 1.56b)
Taxrate = 23.11% (166.3m / 719.9m)
NOPAT = 603.6m (EBIT 785.0m * (1 - 23.11%))
Current Ratio = 1.98 (Total Current Assets 1.76b / Total Current Liabilities 888.1m)
Debt / Equity = 1.00 (Debt 1.56b / totalStockholderEquity, last quarter 1.55b)
Debt / EBITDA = 1.49 (Net Debt 1.32b / EBITDA 887.3m)
Debt / FCF = 2.55 (Net Debt 1.32b / FCF TTM 516.9m)
Total Stockholder Equity = 1.49b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.68% (Net Income 553.6m / Total Assets 3.81b)
RoE = 37.21% (Net Income TTM 553.6m / Total Stockholder Equity 1.49b)
RoCE = 29.79% (EBIT 785.0m / Capital Employed (Equity 1.49b + L.T.Debt 1.15b))
RoIC = 21.22% (NOPAT 603.6m / Invested Capital 2.85b)
WACC = 9.02% (E(13.7b)/V(15.3b) * Re(9.72%) + D(1.56b)/V(15.3b) * Rd(3.70%) * (1-Tc(0.23)))
Discount Rate = 9.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.93 | Cagr: -1.98%
[DCF] Terminal Value 73.46% ; FCFF base≈512.1m ; Y1≈524.3m ; Y5≈577.5m
[DCF] Fair Price = 122.5 (EV 8.03b - Net Debt 1.32b = Equity 6.71b / Shares 54.8m; r=9.02% [WACC]; 5y FCF grow 2.36% → 2.50% )
EPS Correlation: 82.32 | EPS CAGR: 4.49% | SUE: 0.60 | # QB: 0
Revenue Correlation: 65.19 | Revenue CAGR: 2.41% | SUE: 2.09 | # QB: 2
EPS current Quarter (2026-09-30): EPS=2.89 | Chg30d=+4.06% | Revisions=+42% | Analysts=1
EPS current Year (2026-12-31): EPS=11.37 | Chg30d=+4.10% | Revisions=+25% | GrowthEPS=+15.2% | GrowthRev=+11.6%
EPS next Year (2027-12-31): EPS=12.07 | Chg30d=+0.22% | Revisions=+62% | GrowthEPS=+6.2% | GrowthRev=+2.5%
[Analyst] Revisions Ratio: +52% (up=22, down=6)