(LECO) Lincoln Electric Holdings - Ratings and Ratios
Welding Equipment, Cutting Systems, Brazing Products, Automated Solutions, Power
LECO EPS (Earnings per Share)
LECO Revenue
Description: LECO Lincoln Electric Holdings
Lincoln Electric Holdings Inc (NASDAQ:LECO) is a leading manufacturer of welding, cutting, and brazing products, operating globally across three segments: Americas Welding, International Welding, and The Harris Products Group. The company offers a diverse range of products, including welding equipment, cutting systems, and automated solutions, serving various industries such as oil and gas, power generation, and automotive.
From a business perspective, LECOs product portfolio is well-diversified, with a mix of consumables and equipment, allowing for a stable revenue stream. The companys focus on automation and digitalization is evident in its offerings, such as autonomous guided vehicles and mobile robots, which is likely to drive growth in the coming years. Key Performance Indicators (KPIs) to watch include revenue growth, gross margin expansion, and return on equity (RoE), which currently stands at 34.68%, indicating strong profitability.
LECOs customer base is broad, with sales to OEMs, manufacturers, and integrators, as well as through industrial distributors and retailers. The companys strong brand presence and global distribution network are significant strengths. To further analyze the companys performance, other relevant KPIs include operating margin, asset turnover, and debt-to-equity ratio. With a market capitalization of $12.39 billion and a forward P/E ratio of 24.15, LECO appears to be reasonably valued, considering its growth prospects and profitability.
From a growth perspective, LECOs exposure to various end-markets, including infrastructure and energy, positions the company for potential long-term growth. The companys investment in research and development, as well as its focus on automation and digitalization, is likely to drive innovation and expansion into new areas. Monitoring KPIs such as R&D expenditure as a percentage of sales and the percentage of revenue from new products will be essential to assess the companys innovation pipeline.
LECO Stock Overview
| Market Cap in USD | 13,185m |
| Sub-Industry | Industrial Machinery & Supplies & Components |
| IPO / Inception | 1995-06-13 |
LECO Stock Ratings
| Growth Rating | 78.2% |
| Fundamental | 79.5% |
| Dividend Rating | 67.8% |
| Return 12m vs S&P 500 | 15.5% |
| Analyst Rating | 3.90 of 5 |
LECO Dividends
| Dividend Yield 12m | 1.70% |
| Yield on Cost 5y | 4.28% |
| Annual Growth 5y | 7.78% |
| Payout Consistency | 100.0% |
| Payout Ratio | 31.7% |
LECO Growth Ratios
| Growth Correlation 3m | 88% |
| Growth Correlation 12m | 51.4% |
| Growth Correlation 5y | 90.2% |
| CAGR 5y | 22.49% |
| CAGR/Max DD 3y | 0.66 |
| CAGR/Mean DD 3y | 2.19 |
| Sharpe Ratio 12m | -0.24 |
| Alpha | 33.03 |
| Beta | 0.168 |
| Volatility | 26.54% |
| Current Volume | 214.9k |
| Average Volume 20d | 248.8k |
| Stop Loss | 231.9 (-3%) |
| Signal | -0.75 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (502.9m TTM) > 0 and > 6% of Revenue (6% = 245.9m TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA -2.53pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 17.08% (prev 20.27%; Δ -3.19pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 624.5m > Net Income 502.9m (YES >=105%, WARN >=100%) |
| Net Debt (1.06b) to EBITDA (758.8m) ratio: 1.40 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.68 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (56.2m) change vs 12m ago -1.96% (target <= -2.0% for YES) |
| Gross Margin 36.39% (prev 36.34%; Δ 0.05pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 114.8% (prev 119.9%; Δ -5.08pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 13.66 (EBITDA TTM 758.8m / Interest Expense TTM 50.4m) >= 6 (WARN >= 3) |
Altman Z'' 7.95
| (A) 0.19 = (Total Current Assets 1.73b - Total Current Liabilities 1.03b) / Total Assets 3.73b |
| (B) 1.12 = Retained Earnings (Balance) 4.17b / Total Assets 3.73b |
| warn (B) unusual magnitude: 1.12 — check mapping/units |
| (C) 0.19 = EBIT TTM 689.0m / Avg Total Assets 3.57b |
| (D) 1.69 = Book Value of Equity 3.97b / Total Liabilities 2.35b |
| Total Rating: 7.95 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.49
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 3.57% = 1.78 |
| 3. FCF Margin 12.32% = 3.08 |
| 4. Debt/Equity 0.92 = 2.09 |
| 5. Debt/Ebitda 1.67 = 0.64 |
| 6. ROIC - WACC 14.61% = 12.50 |
| 7. RoE 37.34% = 2.50 |
| 8. Rev. Trend 45.42% = 2.27 |
| 9. Rev. CAGR 5.68% = 0.71 |
| 10. EPS Trend 28.43% = 0.71 |
| 11. EPS CAGR 12.01% = 1.20 |
What is the price of LECO shares?
Over the past week, the price has changed by -2.12%, over one month by -1.23%, over three months by +17.43% and over the past year by +37.50%.
Is Lincoln Electric Holdings a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LECO is around 266.66 USD . This means that LECO is currently undervalued and has a potential upside of +11.51% (Margin of Safety).
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 | 253.7 | 6.1% |
| Analysts Target Price | 253.7 | 6.1% |
| ValueRay Target Price | 291 | 21.7% |
Last update: 2025-09-11 04:43
LECO Fundamental Data Overview
CCE Cash And Equivalents = 299.5m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 26.8148
P/E Forward = 22.5225
P/S = 3.2168
P/B = 9.5571
P/EG = 1.6027
Beta = 1.227
Revenue TTM = 4.10b USD
EBIT TTM = 689.0m USD
EBITDA TTM = 758.8m USD
Long Term Debt = 1.15b USD (from longTermDebt, last quarter)
Short Term Debt = 118.7m USD (from shortTermDebt, last quarter)
Debt = 1.27b USD (Calculated: Short Term 118.7m + Long Term 1.15b)
Net Debt = 1.06b USD (from netDebt column, last quarter)
Enterprise Value = 14.15b USD (13.19b + Debt 1.27b - CCE 299.5m)
Interest Coverage Ratio = 13.66 (Ebit TTM 689.0m / Interest Expense TTM 50.4m)
FCF Yield = 3.57% (FCF TTM 504.9m / Enterprise Value 14.15b)
FCF Margin = 12.32% (FCF TTM 504.9m / Revenue TTM 4.10b)
Net Margin = 12.27% (Net Income TTM 502.9m / Revenue TTM 4.10b)
Gross Margin = 36.39% ((Revenue TTM 4.10b - Cost of Revenue TTM 2.61b) / Revenue TTM)
Tobins Q-Ratio = 3.57 (Enterprise Value 14.15b / Book Value Of Equity 3.97b)
Interest Expense / Debt = 1.18% (Interest Expense 15.0m / Debt 1.27b)
Taxrate = 21.55% (128.0m / 594.1m)
NOPAT = 540.5m (EBIT 689.0m * (1 - 21.55%))
Current Ratio = 1.68 (Total Current Assets 1.73b / Total Current Liabilities 1.03b)
Debt / Equity = 0.92 (Debt 1.27b / last Quarter total Stockholder Equity 1.38b)
Debt / EBITDA = 1.67 (Net Debt 1.06b / EBITDA 758.8m)
Debt / FCF = 2.51 (Debt 1.27b / FCF TTM 504.9m)
Total Stockholder Equity = 1.35b (last 4 quarters mean)
RoA = 13.49% (Net Income 502.9m, Total Assets 3.73b )
RoE = 37.34% (Net Income TTM 502.9m / Total Stockholder Equity 1.35b)
RoCE = 27.59% (Ebit 689.0m / (Equity 1.35b + L.T.Debt 1.15b))
RoIC = 20.74% (NOPAT 540.5m / Invested Capital 2.61b)
WACC = 6.13% (E(13.19b)/V(14.45b) * Re(6.63%)) + (D(1.27b)/V(14.45b) * Rd(1.18%) * (1-Tc(0.22)))
Shares Correlation 3-Years: -99.24 | Cagr: -0.36%
Discount Rate = 6.63% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 79.25% ; FCFE base≈522.5m ; Y1≈559.2m ; Y5≈679.4m
Fair Price DCF = 215.1 (DCF Value 11.87b / Shares Outstanding 55.2m; 5y FCF grow 7.84% → 3.0% )
Revenue Correlation: 45.42 | Revenue CAGR: 5.68%
Rev Growth-of-Growth: -3.38
EPS Correlation: 28.43 | EPS CAGR: 12.01%
EPS Growth-of-Growth: -4.64
Additional Sources for LECO Stock
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