(LECO) Lincoln Electric Holdings - NASDAQ
Sector: Industrials | Industry: Tools & Accessories | Exchange: NASDAQ (USA) | Market Cap: 15.079m USD | Total Return: 27.8% in 12m
Avg Turnover: 96.6M
EPS Trend: 76.7%
Qual. Beats: 0
Rev. Trend: 61.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
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: 538.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.49 > 1.0 |
| NWC/Revenue: 19.39% < 20% (prev 18.84%; Δ 0.55% < -1%) |
| CFO/TA 0.15 > 3% & CFO 577.6m > Net Income 538.4m |
| Net Debt (1.59b) to EBITDA (856.5m): 1.86 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.3m) vs 12m ago -2.14% < -2% |
| Gross Margin: 36.10% > 18% (prev 36.57%; Δ -0.48% > 0.5%) |
| Asset Turnover: 115.5% > 50% (prev 111.2%; Δ 4.30% > 0%) |
| Interest Coverage Ratio: 12.57 > 6 (EBIT TTM 755.7m / Interest Expense TTM 60.1m) |
| A: 0.22 (Total Current Assets 1.86b - Total Current Liabilities 1.02b) / Total Assets 3.90b |
| B: 1.14 (Retained Earnings 4.44b / Total Assets 3.90b) |
| C: 0.20 (EBIT TTM 755.7m / Avg Total Assets 3.76b) |
| D: 0.63 (Book Value of Equity 1.51b / Total Liabilities 2.39b) |
| Altman-Z'' = 7.14 = AAA |
| DSRI: 0.91 (Receivables 598.3m/610.0m, Revenue 4.35b/4.03b) |
| GMI: 1.01 (GM 36.57% / 36.10%) |
| AQI: 0.97 (AQ_t 0.34 / AQ_t-1 0.35) |
| SGI: 1.08 (Revenue 4.35b / 4.03b) |
| TATA: -0.01 (NI 538.4m - CFO 577.6m) / TA 3.90b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of June 28, 2026, the stock is trading at USD 266.56 with a total of 888,562 shares traded. Over the past week, the price has changed by -3.15%, over one month by +0.47%, over three months by +6.35% and over the past year by +27.79%.
Current recommended Stop Loss: 257.00 (which is 3.6% or 1.3 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 | 296.7 | 11.3% |
P/E Trailing = 28.4035
P/E Forward = 25.5754
P/S = 3.4664
P/B = 9.9713
P/EG = 1.8121
Revenue TTM = 4.35b USD
EBIT TTM = 755.7m USD
EBITDA TTM = 856.5m USD
Long Term Debt = 1.15b USD (from longTermDebt, last quarter)
Short Term Debt = 163.5m USD (from shortTermDebt, last quarter)
Debt = 1.89b USD (from shortLongTermDebtTotal, last quarter) + Leases 410.7m
Net Debt = 1.59b USD (calculated: Debt 1.89b - CCE 298.9m)
Enterprise Value = 16.7b USD (15.1b + Debt 1.89b - CCE 298.9m)
Interest Coverage Ratio = 12.57 (Ebit TTM 755.7m / Interest Expense TTM 60.1m)
EV/FCF = 38.01x (Enterprise Value 16.7b / FCF TTM 438.5m)
FCF Yield = 2.63% (FCF TTM 438.5m / Enterprise Value 16.7b)
FCF Margin = 10.09% (FCF TTM 438.5m / Revenue TTM 4.35b)
Net Margin = 12.39% (Net Income TTM 538.4m / Revenue TTM 4.35b)
Gross Margin = 36.10% ((Revenue TTM 4.35b - Cost of Revenue TTM 2.78b) / Revenue TTM)
Gross Margin QoQ = 35.59% (prev 34.83%)
Tobins Q-Ratio = 4.27 (Enterprise Value 16.7b / Total Assets 3.90b)
Interest Expense / Debt = 3.19% (Interest Expense 60.1m / Debt 1.89b)
Taxrate = 22.59% (157.1m / 695.6m)
NOPAT = 585.0m (EBIT 755.7m * (1 - 22.59%))
Current Ratio = 1.83 (Total Current Assets 1.86b / Total Current Liabilities 1.02b)
Debt / Equity = 1.25 (Debt 1.89b / totalStockholderEquity, last quarter 1.51b)
Debt / EBITDA = 1.86 (Net Debt 1.59b / EBITDA 856.5m)
Debt / FCF = 3.62 (Net Debt 1.59b / FCF TTM 438.5m)
Total Stockholder Equity = 1.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.31% (Net Income 538.4m / Total Assets 3.90b)
RoE = 37.29% (Net Income TTM 538.4m / Total Stockholder Equity 1.44b)
RoCE = 29.16% (EBIT 755.7m / Capital Employed (Equity 1.44b + L.T.Debt 1.15b))
RoIC = 20.70% (NOPAT 585.0m / Invested Capital 2.83b)
WACC = 9.23% (E(15.1b)/V(17.0b) * Re(10.08%) + D(1.89b)/V(17.0b) * Rd(3.19%) * (1-Tc(0.23)))
Discount Rate = 10.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -2.02%
[DCF] Terminal Value 69.86% ; FCFF base≈476.7m ; Y1≈418.0m ; Y5≈337.8m
[DCF] Fair Price = 57.39 (EV 4.73b - Net Debt 1.59b = Equity 3.14b / Shares 54.8m; r=9.23% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 76.69 | EPS CAGR: 3.38% | SUE: 0.29 | # QB: 0
Revenue Correlation: 60.98 | Revenue CAGR: 1.76% | SUE: 1.49 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.79 | Chg30d=+0.06% | Revisions=-33% | Analysts=10
EPS next Quarter (2026-09-30): EPS=2.78 | Chg30d=-0.15% | Revisions=+38% | Analysts=10
EPS current Year (2026-12-31): EPS=10.92 | Chg30d=-0.02% | Revisions=+23% | GrowthEPS=+10.7% | GrowthRev=+8.5%
EPS next Year (2027-12-31): EPS=12.05 | Chg30d=-0.12% | Revisions=+57% | GrowthEPS=+10.3% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +57%