Stock Analysis

Why I Like Lincoln Electric Holdings, Inc. (NASDAQ:LECO)

  •  Updated
NasdaqGS:LECO
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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 notable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Lincoln Electric Holdings here.

Established dividend payer with adequate balance sheet

LECO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that LECO manages its cash and cost levels well, which is a crucial insight into the health of the company. LECO's has produced operating cash levels of 0.46x 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.

NasdaqGS:LECO Historical Debt, April 16th 2019
NasdaqGS:LECO Historical Debt, April 16th 2019

For those seeking income streams from their portfolio, LECO is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%.

NasdaqGS:LECO Historical Dividend Yield, April 16th 2019
NasdaqGS:LECO Historical Dividend Yield, April 16th 2019

Next Steps:

For Lincoln Electric Holdings, there are three pertinent aspects you should look at:

  1. 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.
  2. Historical Performance: What has LECO's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. 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 editorial-team@simplywallst.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.

About NasdaqGS:LECO

Lincoln Electric Holdings

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

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth2
Past Performance6
Financial Health4
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Outstanding track record established dividend payer.