In this article we will dive into LINCOLN ELECTRIC HOLDINGS (NASDAQ:LECO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LINCOLN ELECTRIC HOLDINGS showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Highlighting Notable Quality Metrics of NASDAQ:LECO.
LINCOLN ELECTRIC HOLDINGS has achieved substantial revenue growth over the past 5 years, with a 6.71% 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 36.84%, 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 favorable Profit Quality (5-year) ratio of 107.0%, LINCOLN ELECTRIC HOLDINGS showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
With a robust 5-year EBIT growth of 11.71%, LINCOLN ELECTRIC HOLDINGS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
LINCOLN ELECTRIC HOLDINGS demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.
How does the complete fundamental picture look for NASDAQ:LECO?
ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.
Overall LECO gets a fundamental rating of 6 out of 10. We evaluated LECO against 133 industry peers in the Machinery industry. LECO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, LECO is valued expensive at the moment.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.