(LECO) Lincoln Electric Holdings - Ratings and Ratios
Welding Equipment, Cutting Systems, Consumables, Automation
Dividends
| Dividend Yield | 1.58% |
| Yield on Cost 5y | 3.56% |
| Yield CAGR 5y | 9.82% |
| Payout Consistency | 97.4% |
| Payout Ratio | 30.6% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 27.2% |
| Value at Risk 5%th | 41.6% |
| Relative Tail Risk | -6.88% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.35 |
| Alpha | -3.99 |
| CAGR/Max DD | 0.55 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.271 |
| Beta | 1.053 |
| Beta Downside | 1.048 |
| Drawdowns 3y | |
|---|---|
| Max DD | 34.29% |
| Mean DD | 12.46% |
| Median DD | 10.43% |
Description: LECO Lincoln Electric Holdings October 30, 2025
Lincoln Electric Holdings, Inc. (NASDAQ: LECO) designs, manufactures and sells a broad portfolio of welding, cutting and brazing solutions-including arc-welding equipment, plasma cutters, fume-control systems, specialty consumables and mobile power units-through three operating segments: Americas Welding, International Welding and The Harris Products Group.
The company serves a diversified set of end-markets such as general fabrication, oil & gas, power generation, automotive, construction, shipbuilding and heavy-equipment maintenance, reaching customers directly, via industrial distributors and retail channels. Its product mix now also includes automation-focused offerings like autonomous guided vehicles, mobile robots and proprietary manufacturing-execution software.
Key financial and market indicators (FY 2023): revenue of roughly $1.6 billion, operating margin near 10 %, free-cash-flow conversion above 30 %, and a dividend yield of ~1.2 % supported by a disciplined share-repurchase program. The firm’s performance is sensitive to cyclical demand in oil-field services and construction, while long-term growth is driven by the broader industrial automation trend and the shift toward renewable-energy infrastructure that raises demand for high-productivity welding solutions.
For a deeper quantitative assessment of LECO’s valuation metrics and scenario analysis, the ValueRay platform offers a transparent model worth exploring.
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income (524.7m TTM) > 0 and > 6% of Revenue (6% = 250.6m TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA 0.27pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 17.73% (prev 19.92%; Δ -2.19pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 662.0m > Net Income 524.7m (YES >=105%, WARN >=100%) |
| Net Debt (1.00b) to EBITDA (808.2m) ratio: 1.24 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.71 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (55.5m) change vs 12m ago -2.77% (target <= -2.0% for YES) |
| Gross Margin 36.64% (prev 36.55%; Δ 0.09pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 111.7% (prev 110.4%; Δ 1.30pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 13.66 (EBITDA TTM 808.2m / Interest Expense TTM 52.1m) >= 6 (WARN >= 3) |
Altman Z'' 7.95
| (A) 0.19 = (Total Current Assets 1.78b - Total Current Liabilities 1.04b) / Total Assets 3.82b |
| (B) 1.11 = Retained Earnings (Balance) 4.25b / Total Assets 3.82b |
| warn (B) unusual magnitude: 1.11 — check mapping/units |
| (C) 0.19 = EBIT TTM 712.1m / Avg Total Assets 3.74b |
| (D) 1.69 = Book Value of Equity 4.05b / Total Liabilities 2.40b |
| Total Rating: 7.95 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 85.62
| 1. Piotroski 8.0pt |
| 2. FCF Yield 3.96% |
| 3. FCF Margin 13.09% |
| 4. Debt/Equity 0.92 |
| 5. Debt/Ebitda 1.24 |
| 6. ROIC - WACC (= 11.04)% |
| 7. RoE 38.43% |
| 8. Rev. Trend 71.72% |
| 9. EPS Trend 69.68% |
What is the price of LECO shares?
Over the past week, the price has changed by +2.07%, over one month by +2.15%, over three months by -1.81% and over the past year by +10.47%.
Is LECO a buy, sell or hold?
- Strong Buy: 5
- Buy: 1
- Hold: 3
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the LECO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 263.9 | 11.4% |
| Analysts Target Price | 263.9 | 11.4% |
| ValueRay Target Price | 280.6 | 18.5% |
LECO Fundamental Data Overview November 26, 2025
P/E Trailing = 24.866
P/E Forward = 21.322
P/S = 3.0657
P/B = 8.9107
P/EG = 1.4871
Beta = 1.259
Revenue TTM = 4.18b USD
EBIT TTM = 712.1m USD
EBITDA TTM = 808.2m USD
Long Term Debt = 1.15b USD (from longTermDebt, last quarter)
Short Term Debt = 102.0m USD (from shortTermDebt, last quarter)
Debt = 1.29b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.00b USD (from netDebt column, last quarter)
Enterprise Value = 13.80b USD (12.80b + Debt 1.29b - CCE 293.0m)
Interest Coverage Ratio = 13.66 (Ebit TTM 712.1m / Interest Expense TTM 52.1m)
FCF Yield = 3.96% (FCF TTM 546.5m / Enterprise Value 13.80b)
FCF Margin = 13.09% (FCF TTM 546.5m / Revenue TTM 4.18b)
Net Margin = 12.56% (Net Income TTM 524.7m / Revenue TTM 4.18b)
Gross Margin = 36.64% ((Revenue TTM 4.18b - Cost of Revenue TTM 2.65b) / Revenue TTM)
Gross Margin QoQ = 36.68% (prev 37.25%)
Tobins Q-Ratio = 3.62 (Enterprise Value 13.80b / Total Assets 3.82b)
Interest Expense / Debt = 1.05% (Interest Expense 13.6m / Debt 1.29b)
Taxrate = 26.13% (43.4m / 166.0m)
NOPAT = 526.0m (EBIT 712.1m * (1 - 26.13%))
Current Ratio = 1.71 (Total Current Assets 1.78b / Total Current Liabilities 1.04b)
Debt / Equity = 0.92 (Debt 1.29b / totalStockholderEquity, last quarter 1.41b)
Debt / EBITDA = 1.24 (Net Debt 1.00b / EBITDA 808.2m)
Debt / FCF = 1.83 (Net Debt 1.00b / FCF TTM 546.5m)
Total Stockholder Equity = 1.37b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.75% (Net Income 524.7m / Total Assets 3.82b)
RoE = 38.43% (Net Income TTM 524.7m / Total Stockholder Equity 1.37b)
RoCE = 28.30% (EBIT 712.1m / Capital Employed (Equity 1.37b + L.T.Debt 1.15b))
RoIC = 20.08% (NOPAT 526.0m / Invested Capital 2.62b)
WACC = 9.04% (E(12.80b)/V(14.10b) * Re(9.88%) + D(1.29b)/V(14.10b) * Rd(1.05%) * (1-Tc(0.26)))
Discount Rate = 9.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.11%
[DCF Debug] Terminal Value 73.22% ; FCFE base≈534.0m ; Y1≈578.3m ; Y5≈719.5m
Fair Price DCF = 166.9 (DCF Value 9.18b / Shares Outstanding 55.0m; 5y FCF grow 9.39% → 3.0% )
EPS Correlation: 69.68 | EPS CAGR: 12.09% | SUE: 0.25 | # QB: 0
Revenue Correlation: 71.72 | Revenue CAGR: 6.29% | SUE: 0.29 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.50 | Chg30d=-0.015 | Revisions Net=+1 | Analysts=8
EPS current Year (2025-12-31): EPS=9.75 | Chg30d=+0.038 | Revisions Net=+0 | Growth EPS=+4.9% | Growth Revenue=+5.9%
EPS next Year (2026-12-31): EPS=10.77 | Chg30d=+0.149 | Revisions Net=+5 | Growth EPS=+10.5% | Growth Revenue=+6.1%
Additional Sources for LECO Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle