(LECO) Lincoln Electric Holdings - Overview
Sector: Industrials | Industry: Tools & Accessories | Exchange: NASDAQ (USA) | Market Cap: 14.295m USD | Total Return: 37.3% in 12m
Avg Turnover: 78.1M
EPS Trend: 82.4%
Qual. Beats: 0
Rev. Trend: 61.0%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Lincoln Electric Holdings, Inc. (LECO) is a global manufacturer specializing in the design and production of welding, cutting, and brazing solutions. Headquartered in Cleveland, Ohio, the company operates via three primary segments: Americas Welding, International Welding, and The Harris Products Group. Its portfolio encompasses arc welding equipment, plasma cutting systems, automated assembly solutions, and specialized consumables for industrial applications.
The company serves diverse end-markets, including automotive, energy, construction, and shipbuilding. As a leader in the industrial machinery sector, Lincoln Electric’s business model relies on a dual distribution strategy, selling directly to original equipment manufacturers (OEMs) while utilizing a global network of industrial distributors. This sector is characterized by high capital intensity and a strong correlation with global manufacturing output and infrastructure spending.
Beyond traditional equipment, the firm has expanded into advanced automation, mobile power solutions, and autonomous guided vehicles (AGVs) to address labor shortages in the fabrication industry. Investors tracking these industrial trends can find more detailed financial metrics on ValueRay. The company’s integrated approach combines hardware, proprietary software, and maintenance services to secure long-term client relationships across the heavy fabrication and repair markets.
- Industrial automation demand drives high-margin revenue growth in North American welding
- Global manufacturing activity and industrial production levels dictate equipment sales volume
- Raw material price volatility for steel and copper impacts consolidated gross margins
- Expansion of electric vehicle charging infrastructure creates new long-term equipment revenue streams
- Shift toward automated system integration improves recurring software and maintenance service income
| 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 (845.0m): 1.88 < 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 0.37%; Δ 3.57k% > 0.5%) |
| Asset Turnover: 115.5% > 50% (prev 111.2%; Δ 4.30% > 0%) |
| Interest Coverage Ratio: 12.38 > 6 (EBITDA TTM 845.0m / 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 744.2m / Avg Total Assets 3.76b) |
| D: 1.86 (Book Value of Equity 4.44b / Total Liabilities 2.39b) |
| Altman-Z'' = 8.40 = AAA |
| DSRI: 0.91 (Receivables 598.3m/610.0m, Revenue 4.35b/4.03b) |
| GMI: 1.01 (GM 36.10% / 36.57%) |
| 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 = -3.06 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 260.08 with a total of 294,261 shares traded.
Over the past week, the price has changed by +0.96%,
over one month by +1.86%,
over three months by -6.01% and
over the past year by +37.31%.
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 | 294.1 | 13.1% |
P/E Forward = 25.1889
P/S = 3.2862
P/B = 9.8284
P/EG = 1.7861
Revenue TTM = 4.35b USD
EBIT TTM = 744.2m USD
EBITDA TTM = 845.0m 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 = 15.9b USD (14.3b + Debt 1.89b - CCE 298.9m)
Interest Coverage Ratio = 12.38 (Ebit TTM 744.2m / Interest Expense TTM 60.1m)
EV/FCF = 36.23x (Enterprise Value 15.9b / FCF TTM 438.5m)
FCF Yield = 2.76% (FCF TTM 438.5m / Enterprise Value 15.9b)
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 = 4.07 (Enterprise Value 15.9b / Total Assets 3.90b)
Interest Expense / Debt = 3.19% (Interest Expense 60.1m / Debt 1.89b)
Taxrate = 21.33% (37.0m / 173.4m)
NOPAT = 585.5m (EBIT 744.2m * (1 - 21.33%))
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 = 1.88 (Net Debt 1.59b / EBITDA 845.0m)
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 = 28.72% (EBIT 744.2m / Capital Employed (Equity 1.44b + L.T.Debt 1.15b))
RoIC = 21.33% (NOPAT 585.5m / Invested Capital 2.74b)
WACC = 9.05% (E(14.3b)/V(16.2b) * Re(9.91%) + D(1.89b)/V(16.2b) * Rd(3.19%) * (1-Tc(0.21)))
Discount Rate = 9.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -2.02%
[DCF] Terminal Value 70.53% ; FCFF base≈476.7m ; Y1≈418.0m ; Y5≈337.8m
[DCF] Fair Price = 59.76 (EV 4.86b - Net Debt 1.59b = Equity 3.27b / Shares 54.8m; r=9.05% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 82.45 | EPS CAGR: 4.41% | SUE: 0.34 | # 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=-1.43% | Revisions=-33% | Analysts=9
EPS next Quarter (2026-09-30): EPS=2.78 | Chg30d=+3.19% | Revisions=+38% | Analysts=9
EPS current Year (2026-12-31): EPS=10.92 | Chg30d=+0.74% | Revisions=+23% | GrowthEPS=+10.7% | GrowthRev=+8.5%
EPS next Year (2027-12-31): EPS=12.06 | Chg30d=+1.56% | Revisions=+57% | GrowthEPS=+10.4% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: +57%