I’ve been keeping an eye on Lincoln Electric Holdings, Inc. (NASDAQ:LECO) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LECO has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Lincoln Electric Holdings here.
Established dividend payer with proven track record
LECO delivered a bottom-line expansion of 21% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 37%. which is an notable feat for the company. LECO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. LECO’s has produced operating cash levels of 0.52x total debt over the past year, which implies that LECO’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
LECO is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Lincoln Electric Holdings, there are three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for LECO’s future growth? Take a look at our free research report of analyst consensus for LECO’s outlook.
- Valuation: What is LECO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LECO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LECO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.