Lincoln Electric Holdings NasdaqGS:LECO Stock Report
Last Price
US$125.78
Market Cap
US$7.3b
7D
2.8%
1Y
-4.8%
Updated
26 Jun, 2022
Data
Company Financials +
LECO fundamental analysis
Snowflake Score
Valuation
3/6
Future Growth
2/6
Past Performance
4/6
Financial Health
4/6
Dividends
5/6
LECO Stock Overview
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide.
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers welding products, including arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories, and specialty welding consumables and fabrication products.
Lincoln Electric Holdings Fundamentals Summary
How do Lincoln Electric Holdings's earnings and revenue compare to its market cap?
Is LECO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LECO?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for LECO. This is calculated by dividing LECO's market cap by their current
preferred multiple.
What is LECO's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$7.31b
LECO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: LECO is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the US Machinery industry average (21.7x)
Price to Earnings Ratio vs Fair Ratio
What is LECO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
LECO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
22.3x
Fair PE Ratio
17.5x
Price-To-Earnings vs Fair Ratio: LECO is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).
Share Price vs Fair Value
What is the Fair Price of LECO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LECO ($125.78) is trading below our estimate of fair value ($207.56)
Significantly Below Fair Value: LECO is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: LECO is poor value based on its PEG Ratio (3.1x)
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Future Growth
How is Lincoln Electric Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score
2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LECO's forecast earnings growth (7.2% per year) is above the savings rate (1.9%).
Earnings vs Market: LECO's earnings (7.2% per year) are forecast to grow slower than the US market (14% per year).
High Growth Earnings: LECO's earnings are forecast to grow, but not significantly.
Revenue vs Market: LECO's revenue (4.6% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: LECO's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LECO's Return on Equity is forecast to be high in 3 years time (39.2%)
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Past Performance
How has Lincoln Electric Holdings performed over the past 5 years?
Past Performance Score
4/6
Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
2.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LECO has a large one-off loss of $132.0M impacting its March 31 2022 financial results.
Growing Profit Margin: LECO's current net profit margins (9.6%) are higher than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: LECO's earnings have grown by 2.3% per year over the past 5 years.
Accelerating Growth: LECO's earnings growth over the past year (46.1%) exceeds its 5-year average (2.3% per year).
Earnings vs Industry: LECO earnings growth over the past year (46.1%) exceeded the Machinery industry 24%.
Return on Equity
High ROE: Whilst LECO's Return on Equity (38.06%) is high, this metric is skewed due to their high level of debt.
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Financial Health
How is Lincoln Electric Holdings's financial position?
Financial Health Score
4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: LECO's short term assets ($1.4B) exceed its short term liabilities ($927.7M).
Long Term Liabilities: LECO's short term assets ($1.4B) exceed its long term liabilities ($945.6M).
Debt to Equity History and Analysis
Debt Level: LECO's net debt to equity ratio (82.4%) is considered high.
Reducing Debt: LECO's debt to equity ratio has increased from 90.6% to 100.3% over the past 5 years.
Debt Coverage: LECO's debt is well covered by operating cash flow (41.9%).
Interest Coverage: LECO's interest payments on its debt are well covered by EBIT (22.7x coverage).
Balance Sheet
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Dividend
What is Lincoln Electric Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
5/6
Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LECO's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: LECO's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: LECO's dividends per share have been stable in the past 10 years.
Growing Dividend: LECO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (38.5%), LECO's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (44.6%), LECO's dividend payments are well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Chris Mapes (59 yo)
9.5yrs
Tenure
US$9,213,820
Compensation
Mr. Christopher L. Mapes, also known as Chris, has been the Chief Executive Officer and President of Lincoln Electric Holdings, Inc. (formerly, The Lincoln Electric Company) since December 31, 2012 and has...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD9.21M) is about average for companies of similar size in the US market ($USD8.44M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: LECO's management team is seasoned and experienced (5.9 years average tenure).
Board Members
Experienced Board: LECO's board of directors are considered experienced (7.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Lincoln Electric Holdings, Inc.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/26 00:00
End of Day Share Price
2022/06/24 00:00
Earnings
2022/03/31
Annual Earnings
2021/12/31
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.