LECO Stock Overview
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide.
Lincoln Electric Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$125.78|
|52 Week High||US$148.55|
|52 Week Low||US$120.35|
|1 Month Change||-5.74%|
|3 Month Change||-6.64%|
|1 Year Change||-4.83%|
|3 Year Change||52.79%|
|5 Year Change||36.58%|
|Change since IPO||1,522.97%|
Recent News & Updates
We Think Lincoln Electric Holdings (NASDAQ:LECO) Can Manage Its Debt With Ease
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Lincoln Electric Holdings: Signs The Situation Is Changing
Lincoln Electric has recently demonstrated some really attractive financial performance on both its top and bottom lines. In the worst case, shares are likely fairly valued, but the changing picture is promising for investors. The company still deserves to be a 'hold' prospect at this time, but continued improvement could change this for the better.
What Is Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) Share Price Doing?
Lincoln Electric Holdings, Inc. ( NASDAQ:LECO ), is not the largest company out there, but it saw significant share...
|LECO||US Machinery||US Market|
Return vs Industry: LECO exceeded the US Machinery industry which returned -20.6% over the past year.
Return vs Market: LECO exceeded the US Market which returned -18.5% over the past year.
|LECO Average Weekly Movement||3.9%|
|Machinery Industry Average Movement||6.1%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: LECO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LECO's weekly volatility (4%) has been stable over the past year.
About the Company
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
|LECO fundamental statistics|
Is LECO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LECO income statement (TTM)|
|Cost of Revenue||US$2.25b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||5.65|
|Net Profit Margin||9.65%|
How did LECO perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Does LECO pay a reliable dividends?See LECO dividend history and benchmarks
|Lincoln Electric Holdings dividend dates|
|Ex Dividend Date||Jun 29 2022|
|Dividend Pay Date||Jul 15 2022|
|Days until Ex dividend||2 days|
|Days until Dividend pay date||18 days|
Does LECO pay a reliable dividends?See LECO dividend history and benchmarks
Is LECO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is LECO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does LECO's PE Ratio compare to its peers?
|LECO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: LECO is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (45.6x).
Price to Earnings Ratio vs Industry
How does LECO's PE Ratio compare vs other companies in the U.S. Machinery Industry?
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.
|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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How is Lincoln Electric Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Lincoln Electric Holdings performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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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How is Lincoln Electric Holdings's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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 ($945.6M).
Debt to Equity History and Analysis
Debt Level: LECO's net debt to equity ratio (82.4%) is considered high.
Reducing Debt: LECO's debt to equity ratio has increased from 90.6% to 100.3% over the past 5 years.
Debt Coverage: LECO's debt is well covered by operating cash flow (41.9%).
Interest Coverage: LECO's interest payments on its debt are well covered by EBIT (22.7x coverage).
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What is Lincoln Electric Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LECO's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: LECO's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: LECO's dividends per share have been stable in the past 10 years.
Growing Dividend: LECO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (38.5%), LECO's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (44.6%), LECO's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Mapes (59 yo)
Mr. Christopher L. Mapes, also known as Chris, has been the Chief Executive Officer and President of Lincoln Electric Holdings, Inc. (formerly, The Lincoln Electric Company) since December 31, 2012 and has...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($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.
Experienced Management: LECO's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: LECO's board of directors are considered experienced (7.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lincoln Electric Holdings, Inc.'s employee growth, exchange listings and data sources
- Name: Lincoln Electric Holdings, Inc.
- Ticker: LECO
- Exchange: NasdaqGS
- Founded: 1895
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: US$7.307b
- Shares outstanding: 58.10m
- Website: https://www.lincolnelectric.com
Number of Employees
- Lincoln Electric Holdings, Inc.
- 22801 St. Clair Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/26 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.