Reasonable growth and debt and a high ROIC for LINCOLN ELECTRIC HOLDINGS (NASDAQ:LECO).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LINCOLN ELECTRIC HOLDINGS (NASDAQ:LECO) is suited for quality investing. Investors should of course do their own research, but we spotted LINCOLN ELECTRIC HOLDINGS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• LINCOLN ELECTRIC HOLDINGS has achieved substantial revenue growth over the past 5 years, with a 7.46% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of LINCOLN ELECTRIC HOLDINGS stands at 38.17%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of LINCOLN ELECTRIC HOLDINGS stands at 1.94, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 104.0%, LINCOLN ELECTRIC HOLDINGS highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of LINCOLN ELECTRIC HOLDINGS has been remarkable, with 12.37% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• LINCOLN ELECTRIC HOLDINGS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NASDAQ:LECO telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, LECO scores 7 out of 10 in our fundamental rating. LECO was compared to 132 industry peers in the Machinery industry. LECO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, LECO is valued expensive at the moment. These ratings could make LECO a good candidate for quality investing.

Check the latest full fundamental report of LECO for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.