Lincoln Electric (LECO): How Do Recent Earnings and Buybacks Shape Its Current Valuation?

Lincoln Electric Holdings (LECO) made headlines after announcing higher sales and net income for both the third quarter and the first nine months of the year compared to 2024. In addition, recent share buyback activity highlights the company’s continued focus on rewarding shareholders.

See our latest analysis for Lincoln Electric Holdings.

After posting higher sales and net income alongside ongoing share buybacks, Lincoln Electric Holdings has seen its 2025 share price gain 22.8% year-to-date. However, recent momentum has softened, with short-term pullbacks and a one-year total shareholder return of 7.8% showing more moderate progress. This is despite a strong longer-term track record.

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With strong results and steady buybacks, does the market present Lincoln Electric as a compelling value? Or has the current share price already factored in these gains and future growth expectations?

Most Popular Narrative: 12.9% Undervalued

With the latest narrative fair value of $260.60 and Lincoln Electric’s last close at $226.89, valuation sentiment leans positive. The gap signals that, based on the most followed expectations, there is more upside potential in the price than the market may be crediting right now.

Continued investment in cost management and permanent savings initiatives, including lean operations and operational efficiency efforts, will provide sustained margin support. Structural cost savings realized are expected to enhance free cash flow conversion and drive incremental margin expansion as volumes recover.

Read the complete narrative.

Think you know the numbers powering this bullish stance? Behind the price, the real story is about transformative efficiency moves and a profit outlook typically reserved for market leaders. The playbook contains assumptions that could tilt the narrative. Curious which bold estimates and underlying growth drivers support this strong fair value? Unlock the full details to see what is fueling such confidence.

Result: Fair Value of $260.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if demand slows or weakness in international markets persists, Lincoln Electric’s growth outlook could face unexpected challenges and shift investor sentiment.

Find out about the key risks to this Lincoln Electric Holdings narrative.

Another View: What If the Market Is Already Fair?

While the narrative-based fair value points to meaningful upside, our SWS DCF model paints a more cautious picture. According to this method, Lincoln Electric Holdings is actually trading slightly above its estimated intrinsic value. This could signal less room for future gains if market optimism fades. Does the recent momentum have further to run, or is it already baked in?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lincoln Electric Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 875 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Lincoln Electric Holdings Narrative

Prefer your own analysis or want to put these numbers to the test? Build and personalize your own Lincoln Electric Holdings narrative in just a few minutes: Do it your way

A great starting point for your Lincoln Electric Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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