LECO Stock Analysis: Lincoln Electric Holdings | NASDAQ
Tools & Accessories | NASDAQ, USA | Market Cap: 14.781m USD | 12M Return: 19.9% | US5339001068 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 104M
EPS Trend: 82.3%
Qual. Beats: 0
Rev. Trend: 65.2%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 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 is a global manufacturer of welding, cutting, and brazing products, operating through three segments: Americas Welding, International Welding, and The Harris Products Group. The company sells a broad portfolio that includes arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, specialty gas regulators, consumables such as brazing and soldering filler metals, and a range of automated joining and material-handling solutions. It also supplies mobile power equipment and integrates autonomous guided vehicles and mobile robots for industrial customers.
The company serves a diverse 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. Distribution is handled through a mix of direct sales to OEMs, manufacturers, and integrators, as well as through industrial distributors, retailers, and agents. Within the Industrial Machinery & Components sub-industry, the combination of capital equipment with recurring consumable sales and service contracts is a common structural feature that supports multi-year customer relationships across heavy industrial sectors.
Founded in 1895 and headquartered in Cleveland, Ohio, Lincoln Electric has operated for more than a century and trades on the NASDAQ under the ticker LECO. Its three reporting segments provide exposure to both mature U.S. demand and faster-growing international markets, while the breadth of end markets served helps offset cyclicality in any single industry such as oil and gas or construction.
- Industrial automation demand drives welding equipment orders
- International Welding margins pressured by FX and emerging market slowdown
- Infrastructure and energy transition spending boosts heavy fabrication backlog
| 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 October 05, 2026, the stock is trading at USD 274.38 with a total of 387,206 shares traded. Over the past week, the price has changed by +1.28%, over one month by +0.95%, over three months by +6.48% and over the past year by +19.92%.
Current recommended Stop Loss: 262.80 (which is 4.2% or 1.6 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 | 304.9 | 11.1% |
P/E Trailing = 27.1723
P/E Forward = 21.2314
P/S = 3.2985
P/B = 9.2232
P/EG = 1.4843
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 = 16.1b USD (14.8b + Debt 1.56b - CCE 242.4m)
Interest Coverage Ratio = 13.61 (Ebit TTM 785.0m / Interest Expense TTM 57.7m)
EV/FCF = 31.15x (Enterprise Value 16.1b / FCF TTM 516.9m)
FCF Yield = 3.21% (FCF TTM 516.9m / Enterprise Value 16.1b)
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 = 4.22 (Enterprise Value 16.1b / 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 = 9.35% (E(14.8b)/V(16.3b) * Re(10.04%) + D(1.56b)/V(16.3b) * Rd(3.70%) * (1-Tc(0.23)))
Discount Rate = 10.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.93 | Cagr: -1.98%
[DCF] Terminal Value 72.34% ; FCFF base≈512.1m ; Y1≈524.3m ; Y5≈577.5m
[DCF] Fair Price = 115.9 (EV 7.64b - Net Debt 1.32b = Equity 6.32b / Shares 54.5m; r=9.35% [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=2.82 | Chg30d=-0.00% | Revisions=+46% | Analysts=11
EPS current Year (2026-12-31): EPS=11.21 | Chg30d=+0.02% | Revisions=+79% | GrowthEPS=+13.6% | GrowthRev=+11.2%
EPS next Year (2027-12-31): EPS=12.53 | Chg30d=+0.08% | Revisions=+79% | GrowthEPS=+11.7% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: +80% (up=30, down=2)