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LECO

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
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

LECO Stock Overview

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

Lincoln Electric Holdings Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Lincoln Electric Holdings
Historical stock prices
Current Share PriceUS$125.78
52 Week HighUS$148.55
52 Week LowUS$120.35
Beta1.15
1 Month Change-5.74%
3 Month Change-6.64%
1 Year Change-4.83%
3 Year Change52.79%
5 Year Change36.58%
Change since IPO1,522.97%

Recent News & Updates

Jun 06
We Think Lincoln Electric Holdings (NASDAQ:LECO) Can Manage Its Debt With Ease

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...

May 30

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.

May 25
What Is Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) Share Price Doing?

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...

Shareholder Returns

LECOUS MachineryUS Market
7D2.8%1.5%6.6%
1Y-4.8%-20.1%-18.4%

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.

Price Volatility

Is LECO's price volatile compared to industry and market?
LECO volatility
LECO Average Weekly Movement3.9%
Machinery Industry Average Movement6.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
189511,000Chris Mapeshttps://www.lincolnelectric.com

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?
LECO fundamental statistics
Market CapUS$7.31b
Earnings (TTM)US$328.32m
Revenue (TTM)US$3.40b

22.3x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LECO income statement (TTM)
RevenueUS$3.40b
Cost of RevenueUS$2.25b
Gross ProfitUS$1.15b
Other ExpensesUS$822.10m
EarningsUS$328.32m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.65
Gross Margin33.81%
Net Profit Margin9.65%
Debt/Equity Ratio100.3%

How did LECO perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

38%

Payout Ratio

Does LECO pay a reliable dividends?

See LECO dividend history and benchmarks
When do you need to buy LECO by to receive an upcoming dividend?
Lincoln Electric Holdings dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateJul 15 2022
Days until Ex dividend2 days
Days until Dividend pay date18 days

Does LECO pay a reliable dividends?

See LECO dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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.

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.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA13.3x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does LECO's PE Ratio compare to its peers?

LECO PE Ratio vs Peers
The above table shows the PE ratio for LECO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average45.6x

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.

LECO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ratio17.5x

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.


Discover strong past performing companies

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

TodayJun 26 2022Ex Dividend DateJun 29 2022Dividend Pay DateJul 15 202216 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

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.


Discover strong dividend paying companies

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


Key Information

  • 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


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.