Lincoln Electric Holdings
Market Cap
US$4.3b
Last Updated
2020/04/07 01:39 UTC
Data Sources
Company Financials +
Executive Summary
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2.3% per year for the next 3 years
Snowflake Analysis
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
Stable Share Price: LECO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.4%
LECO
-1.2%
US Machinery
-2.6%
US Market
1 Year Return
-19.2%
LECO
-23.5%
US Machinery
-13.3%
US Market
Return vs Industry: LECO exceeded the US Machinery industry which returned -26.6% over the past year.
Return vs Market: LECO underperformed the US Market which returned -15.9% over the past year.
Shareholder returns
| LECO | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.4% | -1.2% | -2.6% |
| 30 Day | -11.5% | -17.4% | -15.2% |
| 90 Day | -26.0% | -29.7% | -22.2% |
| 1 Year | -17.3%-19.2% | -21.3%-23.5% | -11.5%-13.3% |
| 3 Year | -12.1%-17.3% | -1.8%-8.9% | 13.2%5.7% |
| 5 Year | 22.3%10.5% | 21.1%5.7% | 31.8%17.2% |
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
1 week ago | Simply Wall St
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) Looks Like A Good Stock, And It's Going Ex-Dividend Soon2 weeks ago | Simply Wall St
The Attractive Combination That Could Earn Lincoln Electric Holdings, Inc. (NASDAQ:LECO) A Place In Your Dividend Portfolio4 weeks ago | Simply Wall St
Has Lincoln Electric Holdings, Inc. (NASDAQ:LECO) Improved Earnings Growth In Recent Times?Valuation
Is Lincoln Electric Holdings undervalued compared to its fair value and its price relative to the market?
18.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LECO ($72.05) is trading below our estimate of fair value ($88.63)
Significantly Below Fair Value: LECO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: LECO is poor value based on its PE Ratio (15.2x) compared to the Machinery industry average (14.5x).
PE vs Market: LECO is poor value based on its PE Ratio (15.2x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: LECO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: LECO is overvalued based on its PB Ratio (5.3x) compared to the US Machinery industry average (1.4x).
Next Steps
Future Growth
How is Lincoln Electric Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LECO's earnings are forecast to decline over the next 3 years (-2.3% per year).
Earnings vs Market: LECO's earnings are forecast to decline over the next 3 years (-2.3% per year).
High Growth Earnings: LECO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LECO's revenue is expected to decline over the next 3 years (-0.4% per year).
High Growth Revenue: LECO's revenue is forecast to decline over the next 3 years (-0.4% 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 (34.9%)
Next Steps
Past Performance
How has Lincoln Electric Holdings performed over the past 5 years?
11.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LECO has high quality earnings.
Growing Profit Margin: LECO's current net profit margins (9.8%) are higher than last year (9.5%).
Past Earnings Growth Analysis
Earnings Trend: LECO's earnings have grown by 11% per year over the past 5 years.
Accelerating Growth: LECO's earnings growth over the past year (2.1%) is below its 5-year average (11% per year).
Earnings vs Industry: LECO earnings growth over the past year (2.1%) exceeded the Machinery industry -2%.
Return on Equity
High ROE: LECO's Return on Equity (35.8%) is considered high.
Next Steps
Financial Health
How is Lincoln Electric Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LECO's short term assets ($1.1B) exceed its short term liabilities ($563.1M).
Long Term Liabilities: LECO's short term assets ($1.1B) exceed its long term liabilities ($989.0M).
Debt to Equity History and Analysis
Debt Level: LECO's debt to equity ratio (91.2%) is considered high.
Reducing Debt: LECO's debt to equity ratio has increased from 5.6% to 91.2% over the past 5 years.
Debt Coverage: LECO's debt is well covered by operating cash flow (54%).
Interest Coverage: LECO's interest payments on its debt are well covered by EBIT (16x coverage).
Balance Sheet
Next Steps
Dividend
What is Lincoln Electric Holdings's current dividend yield, its reliability and sustainability?
2.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LECO's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: LECO's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (5.82%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.2%), LECO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LECO's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Chris Mapes (57yo)
7.33s
Tenure
US$6,981,969
Compensation
Mr. Christopher L. Mapes, also known as Chris, serves as the Chairman, Chief Executive Officer and President of The Lincoln Electric Company. Mr. Mapes has been the Chairman of Lincoln Electric Holdings In ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD6.98M) is about average for companies of similar size in the US market ($USD5.71M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.33yrs | US$6.98m | 0.38% $16.6m | |
| Executive Vice President | 16.17yrs | US$2.67m | 0.12% $5.3m | |
| Executive VP | 3yrs | US$1.50m | 0.019% $845.1k | |
| Executive VP & President of Americas Welding | 14.42yrs | US$2.23m | 0.080% $3.5m | |
| Executive VP & President of International Welding | 5.25yrs | US$1.87m | 0.049% $2.1m | |
| Executive VP | 1yr | no data | 0.031% $1.4m | |
| Senior Vice President of Technology and Research & Development | no data | no data | no data | |
| Vice President of Investor Relations & Communications | 7.08yrs | no data | no data | |
| Chief Compliance Officer & Senior VP of Internal Audit | 5.25yrs | no data | no data | |
| Executive VP & Chief Human Resources Officer | 1.17yrs | no data | 0.028% $1.2m |
5.3yrs
Average Tenure
52yo
Average Age
Experienced Management: LECO's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.33yrs | US$6.98m | 0.38% $16.6m | |
| Independent Director | 13.25yrs | US$227.92k | 0.028% $1.2m | |
| Independent Director | 13.75yrs | US$232.92k | 0.037% $1.6m | |
| Independent Director | 31.25yrs | US$214.92k | 0.45% $19.6m | |
| Independent Director | 25.25yrs | US$224.92k | 0.073% $3.2m | |
| Independent Director | 19.25yrs | US$214.92k | 0.041% $1.8m | |
| Lead Independent Director | 2yrs | US$239.92k | 0.020% $870.6k | |
| Independent Director | 6.75yrs | US$224.92k | 0.024% $1.0m | |
| Independent Director | 4.75yrs | US$214.92k | 0.0088% $382.7k | |
| Independent Director | 2.17yrs | US$214.92k | 0.0019% $80.2k |
10.0yrs
Average Tenure
66.5yo
Average Age
Experienced Board: LECO's board of directors are seasoned and experienced ( 10 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 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$4.334b
- Shares outstanding: 60.16m
- Website: https://www.lincolnelectric.com
Number of Employees
Location
- Lincoln Electric Holdings, Inc.
- 22801 St. Clair Avenue
- Cleveland
- Ohio
- 44117
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LECO | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jan 1975 |
| LNE | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1975 |
Biography
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. It operates through three segments: Americas Welding, International Welding, and The Harris Products Group. The company 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. It also provides computer numeric controlled plasma and oxy-fuel cutting systems, and regulators and torches used in oxy-fuel welding, cutting, and brazing; and consumables used in the brazing and soldering alloys market. In addition, the company is involved in the retail business in the United States. It serves general fabrication, energy and process, automotive and transportation, heavy fabrication, and construction and infrastructure industries, as well as ship building and maintenance and repair markets. The company sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. Lincoln Electric Holdings, Inc. was founded in 1895 and is headquartered in Cleveland, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 01:39 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.