NasdaqGS:LECO

Stock Analysis Report

Executive Summary

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, manufactures, and sells welding, cutting, and brazing products worldwide.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Lincoln Electric Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

NasdaqGS:LECO

-2.5%

US Machinery

-1.6%

US Market


1 Year Return

-12.3%

NasdaqGS:LECO

-9.9%

US Machinery

-3.0%

US Market

LECO underperformed the Machinery industry which returned -9.9% over the past year.

LECO underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

LECOIndustryMarket
7 Day-1.5%-2.5%-1.6%
30 Day-7.4%-11.7%-5.7%
90 Day4.7%-4.2%0.2%
1 Year-10.4%-12.3%-8.0%-9.9%-0.8%-3.0%
3 Year34.4%27.1%32.5%23.9%38.1%29.1%
5 Year25.5%14.0%32.8%16.3%50.8%34.1%

Price Volatility Vs. Market

How volatile is Lincoln Electric Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lincoln Electric Holdings undervalued based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Lincoln Electric Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Lincoln Electric Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Lincoln Electric Holdings is good value based on earnings compared to the US Machinery industry average.

Lincoln Electric Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Lincoln Electric Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Lincoln Electric Holdings is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Lincoln Electric Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lincoln Electric Holdings's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Lincoln Electric Holdings's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Lincoln Electric Holdings's revenue growth is positive but not above the United States of America market average.

Lincoln Electric Holdings's earnings growth is positive but not above the United States of America market average.

Lincoln Electric Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Lincoln Electric Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Lincoln Electric Holdings performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lincoln Electric Holdings's year on year earnings growth rate has been positive over the past 5 years.

Lincoln Electric Holdings's 1-year earnings growth exceeds its 5-year average (20.9% vs 5.2%)

Lincoln Electric Holdings's earnings growth has exceeded the US Machinery industry average in the past year (20.9% vs 17.5%).


Return on Equity

Lincoln Electric Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Lincoln Electric Holdings used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Lincoln Electric Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Lincoln Electric Holdings's financial position?


Financial Position Analysis

Lincoln Electric Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lincoln Electric Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Lincoln Electric Holdings's level of debt (87.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.6% vs 87.7% today).

Debt is well covered by operating cash flow (48.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

What is Lincoln Electric Holdings's current dividend yield, its reliability and sustainability?

2.38%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Lincoln Electric Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Lincoln Electric Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Lincoln Electric Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

What is the CEO of Lincoln Electric Holdings's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Chris Mapes (57yo)

6.7yrs

Tenure

US$6,813,960

Compensation

Mr. Christopher L. Mapes, also known as Chris, serves as the Chairman, Chief Executive Officer and President of The Lincoln Electric Company. Mr. Mapes has been the Chairman of Lincoln Electric Holdings In ...


CEO Compensation Analysis

Chris's remuneration is about average for companies of similar size in United States of America.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

52yo

Average Age

The tenure for the Lincoln Electric Holdings management team is about average.


Board Age and Tenure

9.3yrs

Average Tenure

66.5yo

Average Age

The tenure for the Lincoln Electric Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$213,18612 Mar 19
Hellene Runtagh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,531
Max PriceUS$84.23
SellUS$69,33206 Mar 19
Geoffrey Allman
EntityIndividual
Shares792
Max PriceUS$87.54
SellUS$295,47404 Sep 18
Kathryn Lincoln
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,140
Max PriceUS$94.10

Ownership Breakdown


Management Team

  • Anthony Battle

    Chief Compliance Officer & Senior VP of Internal Audit

    • Tenure: 4.6yrs
  • Chris Mapes (57yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$6.81m
  • Vince Petrella (59yo)

    Executive VP

    • Tenure: 13.8yrs
    • Compensation: US$2.31m
  • Gabe Bruno (51yo)

    Principal Accounting Officer

    • Tenure: 0.3yrs
  • Michele Kuhrt (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.5yrs
  • George Blankenship (56yo)

    Executive VP & President of Americas Welding

    • Tenure: 13.8yrs
    • Compensation: US$2.08m
  • Steve Hedlund (52yo)

    Executive VP & President of International Welding

    • Tenure: 4.6yrs
    • Compensation: US$1.89m
  • Amanda Butler

    Vice President of Investor Relations & Communications

    • Tenure: 6.4yrs
  • Tom Matthews

    Senior Vice President of Technology and Research & Development

    • Tenure: 0.0yrs
  • Jennifer Ansberry (45yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$1.50m

Board Members

  • William MacDonald (72yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$217.95k
  • Steven Hanks (68yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$216.95k
  • G. Lincoln (72yo)

    Independent Director

    • Tenure: 30.6yrs
    • Compensation: US$204.95k
  • Kathryn Lincoln (64yo)

    Independent Director

    • Tenure: 24.6yrs
    • Compensation: US$214.95k
  • Hellene Runtagh (71yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$204.95k
  • Curt Espeland (54yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: US$240.46k
  • Chris Mapes (57yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$6.81m
  • Phillip Mason (69yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$207.45k
  • Mike Hilton (65yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$204.95k
  • Ben Patel (51yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$294.56k

Company Information

Lincoln Electric Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lincoln Electric Holdings, Inc.
  • Ticker: LECO
  • Exchange: NasdaqGS
  • Founded: 1895
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$5.008b
  • Shares outstanding: 61.78m
  • Website: https://www.lincolnelectric.com

Number of Employees


Location

  • Lincoln Electric Holdings, Inc.
  • 22801 St. Clair Avenue
  • Cleveland
  • Ohio
  • 44117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LECONasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1975
LNEDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1975

Biography

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, manufactures, and sells welding, cutting, and brazing products worldwide. It operates through three segments: Americas Welding, Internati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:42
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.