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LINCOLN ELECTRIC HOLDINGS (LECO) Stock Fundamental Analysis

NASDAQ:LECO - Nasdaq - US5339001068 - Common Stock - Currency: USD

222.81  +0.03 (+0.01%)

Fundamental Rating

6

Overall LECO gets a fundamental rating of 6 out of 10. We evaluated LECO against 127 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making LECO a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, LECO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year LECO was profitable.
LECO had a positive operating cash flow in the past year.
In the past 5 years LECO has always been profitable.
In the past 5 years LECO always reported a positive cash flow from operatings.
LECO Yearly Net Income VS EBIT VS OCF VS FCFLECO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

LECO has a Return On Assets of 12.72%. This is amongst the best in the industry. LECO outperforms 88.98% of its industry peers.
LECO has a Return On Equity of 34.41%. This is amongst the best in the industry. LECO outperforms 95.28% of its industry peers.
The Return On Invested Capital of LECO (20.27%) is better than 96.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LECO is significantly above the industry average of 10.78%.
Industry RankSector Rank
ROA 12.72%
ROE 34.41%
ROIC 20.27%
ROA(3y)14.74%
ROA(5y)12.76%
ROE(3y)40.81%
ROE(5y)36.11%
ROIC(3y)21.22%
ROIC(5y)19.81%
LECO Yearly ROA, ROE, ROICLECO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

LECO has a Profit Margin of 11.44%. This is amongst the best in the industry. LECO outperforms 80.31% of its industry peers.
In the last couple of years the Profit Margin of LECO has grown nicely.
Looking at the Operating Margin, with a value of 16.98%, LECO is in the better half of the industry, outperforming 79.53% of the companies in the same industry.
In the last couple of years the Operating Margin of LECO has grown nicely.
LECO has a Gross Margin of 36.58%. This is in the better half of the industry: LECO outperforms 66.14% of its industry peers.
LECO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.98%
PM (TTM) 11.44%
GM 36.58%
OM growth 3Y4.56%
OM growth 5Y5.34%
PM growth 3Y10.79%
PM growth 5Y3.57%
GM growth 3Y3.53%
GM growth 5Y1.97%
LECO Yearly Profit, Operating, Gross MarginsLECO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LECO is creating value.
Compared to 1 year ago, LECO has less shares outstanding
The number of shares outstanding for LECO has been reduced compared to 5 years ago.
Compared to 1 year ago, LECO has a worse debt to assets ratio.
LECO Yearly Shares OutstandingLECO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LECO Yearly Total Debt VS Total AssetsLECO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 6.82 indicates that LECO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.82, LECO belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
LECO has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as LECO would need 2.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, LECO is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
LECO has a Debt/Equity ratio of 0.87. This is a neutral value indicating LECO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, LECO is not doing good in the industry: 74.02% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for LECO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.36
Altman-Z 6.82
ROIC/WACC2.08
WACC9.73%
LECO Yearly LT Debt VS Equity VS FCFLECO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

LECO has a Current Ratio of 1.78. This is a normal value and indicates that LECO is financially healthy and should not expect problems in meeting its short term obligations.
LECO's Current ratio of 1.78 is on the low side compared to the rest of the industry. LECO is outperformed by 62.20% of its industry peers.
LECO has a Quick Ratio of 1.19. This is a normal value and indicates that LECO is financially healthy and should not expect problems in meeting its short term obligations.
LECO has a Quick ratio of 1.19. This is comparable to the rest of the industry: LECO outperforms 44.88% of its industry peers.
LECO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.19
LECO Yearly Current Assets VS Current LiabilitesLECO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

4

3. Growth

3.1 Past

LECO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.26%.
Measured over the past years, LECO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.62% on average per year.
Looking at the last year, LECO shows a decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
The Revenue has been growing slightly by 5.94% on average over the past years.
EPS 1Y (TTM)-3.26%
EPS 3Y14.33%
EPS 5Y14.62%
EPS Q2Q%-3.14%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y7.42%
Revenue growth 5Y5.94%
Sales Q2Q%2.36%

3.2 Future

LECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.22% yearly.
Based on estimates for the next years, LECO will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y-0.33%
EPS Next 2Y4.75%
EPS Next 3Y5.56%
EPS Next 5Y10.22%
Revenue Next Year2.68%
Revenue Next 2Y3.55%
Revenue Next 3Y3.65%
Revenue Next 5Y5.51%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
LECO Yearly Revenue VS EstimatesLECO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
LECO Yearly EPS VS EstimatesLECO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.19, the valuation of LECO can be described as rather expensive.
LECO's Price/Earnings is on the same level as the industry average.
LECO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 21.88, which indicates a rather expensive current valuation of LECO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LECO is on the same level as its industry peers.
LECO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
Industry RankSector Rank
PE 24.19
Fwd PE 21.88
LECO Price Earnings VS Forward Price EarningsLECO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LECO.
The rest of the industry has a similar Price/Free Cash Flow ratio as LECO.
Industry RankSector Rank
P/FCF 23.29
EV/EBITDA 17.15
LECO Per share dataLECO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The excellent profitability rating of LECO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y4.75%
EPS Next 3Y5.56%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.34%, LECO has a reasonable but not impressive dividend return.
LECO's Dividend Yield is a higher than the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.35, LECO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.34%

5.2 History

The dividend of LECO is nicely growing with an annual growth rate of 8.56%!
LECO has been paying a dividend for at least 10 years, so it has a reliable track record.
LECO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.56%
Div Incr Years24
Div Non Decr Years24
LECO Yearly Dividends per shareLECO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

35.53% of the earnings are spent on dividend by LECO. This is a low number and sustainable payout ratio.
The dividend of LECO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.53%
EPS Next 2Y4.75%
EPS Next 3Y5.56%
LECO Yearly Income VS Free CF VS DividendLECO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
LECO Dividend Payout.LECO Dividend Payout, showing the Payout Ratio.LECO Dividend Payout.PayoutRetained Earnings

LINCOLN ELECTRIC HOLDINGS

NASDAQ:LECO (7/14/2025, 3:43:49 PM)

222.81

+0.03 (+0.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-24 2025-07-24/amc
Inst Owners80.56%
Inst Owner Change0.03%
Ins Owners1.47%
Ins Owner Change1.49%
Market Cap12.44B
Analysts77.5
Price Target216.37 (-2.89%)
Short Float %2.06%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend2.87
Dividend Growth(5Y)8.56%
DP35.53%
Div Incr Years24
Div Non Decr Years24
Ex-Date06-30 2025-06-30 (0.75)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.33%
Min EPS beat(2)-5.1%
Max EPS beat(2)25.75%
EPS beat(4)3
Avg EPS beat(4)5.44%
Min EPS beat(4)-5.1%
Max EPS beat(4)25.75%
EPS beat(8)7
Avg EPS beat(8)5.11%
EPS beat(12)10
Avg EPS beat(12)4.4%
EPS beat(16)14
Avg EPS beat(16)5.5%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)0.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.27%
Revenue beat(12)5
Avg Revenue beat(12)-1.56%
Revenue beat(16)8
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)-9.73%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 24.19
Fwd PE 21.88
P/S 3.09
P/FCF 23.29
P/OCF 19.1
P/B 9.28
P/tB 23.63
EV/EBITDA 17.15
EPS(TTM)9.21
EY4.13%
EPS(NY)10.18
Fwd EY4.57%
FCF(TTM)9.57
FCFY4.29%
OCF(TTM)11.67
OCFY5.24%
SpS72.22
BVpS24
TBVpS9.43
PEG (NY)N/A
PEG (5Y)1.65
Profitability
Industry RankSector Rank
ROA 12.72%
ROE 34.41%
ROCE 25.78%
ROIC 20.27%
ROICexc 23.8%
ROICexgc 37.09%
OM 16.98%
PM (TTM) 11.44%
GM 36.58%
FCFM 13.25%
ROA(3y)14.74%
ROA(5y)12.76%
ROE(3y)40.81%
ROE(5y)36.11%
ROIC(3y)21.22%
ROIC(5y)19.81%
ROICexc(3y)24.29%
ROICexc(5y)22.63%
ROICexgc(3y)41.43%
ROICexgc(5y)36.86%
ROCE(3y)27.25%
ROCE(5y)25.47%
ROICexcg growth 3Y8.18%
ROICexcg growth 5Y9.37%
ROICexc growth 3Y1.83%
ROICexc growth 5Y4.58%
OM growth 3Y4.56%
OM growth 5Y5.34%
PM growth 3Y10.79%
PM growth 5Y3.57%
GM growth 3Y3.53%
GM growth 5Y1.97%
F-Score6
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.36
Debt/EBITDA 1.5
Cap/Depr 129.7%
Cap/Sales 2.91%
Interest Coverage 250
Cash Conversion 84.05%
Profit Quality 115.81%
Current Ratio 1.78
Quick Ratio 1.19
Altman-Z 6.82
F-Score6
WACC9.73%
ROIC/WACC2.08
Cap/Depr(3y)109.73%
Cap/Depr(5y)95.96%
Cap/Sales(3y)2.33%
Cap/Sales(5y)2.23%
Profit Quality(3y)91.73%
Profit Quality(5y)105.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.26%
EPS 3Y14.33%
EPS 5Y14.62%
EPS Q2Q%-3.14%
EPS Next Y-0.33%
EPS Next 2Y4.75%
EPS Next 3Y5.56%
EPS Next 5Y10.22%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y7.42%
Revenue growth 5Y5.94%
Sales Q2Q%2.36%
Revenue Next Year2.68%
Revenue Next 2Y3.55%
Revenue Next 3Y3.65%
Revenue Next 5Y5.51%
EBIT growth 1Y-5.84%
EBIT growth 3Y12.31%
EBIT growth 5Y11.6%
EBIT Next Year16.2%
EBIT Next 3Y9.48%
EBIT Next 5Y10.45%
FCF growth 1Y36.18%
FCF growth 3Y16.82%
FCF growth 5Y7.65%
OCF growth 1Y40.32%
OCF growth 3Y17.94%
OCF growth 5Y8.24%