Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. More Details
Established dividend payer with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LECO underperformed the US Machinery industry which returned 7.6% over the past year.
Return vs Market: LECO underperformed the US Market which returned 10.9% over the past year.
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 day ago | Simply Wall StLincoln Electric Holdings, Inc. (NASDAQ:LECO) Stock Goes Ex-Dividend In Just Four Days
1 week ago | Simply Wall StThese 4 Measures Indicate That Lincoln Electric Holdings (NASDAQ:LECO) Is Using Debt Reasonably Well
2 weeks ago | Simply Wall StWhat Can We Conclude About Lincoln Electric Holdings' (NASDAQ:LECO) CEO Pay?
Is Lincoln Electric Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LECO ($88.75) is trading above our estimate of fair value ($82.74)
Significantly Below Fair Value: LECO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LECO is poor value based on its PE Ratio (24.5x) compared to the US Machinery industry average (23.8x).
PE vs Market: LECO is poor value based on its PE Ratio (24.5x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: LECO is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: LECO is overvalued based on its PB Ratio (8x) compared to the US Machinery industry average (2.1x).
How is Lincoln Electric Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LECO's forecast earnings growth (13.9% per year) is above the savings rate (2.2%).
Earnings vs Market: LECO's earnings (13.9% per year) are forecast to grow slower than the US market (23% per year).
High Growth Earnings: LECO's earnings are forecast to grow, but not significantly.
Revenue vs Market: LECO's revenue (6.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: LECO's revenue (6.2% 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 (35.6%)
How has Lincoln Electric Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LECO has high quality earnings.
Growing Profit Margin: LECO's current net profit margins (7.9%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: LECO's earnings have grown by 13.3% per year over the past 5 years.
Accelerating Growth: LECO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LECO had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Machinery industry average (-12.7%).
Return on Equity
High ROE: Whilst LECO's Return on Equity (33.14%) is high, this metric is skewed due to their high level of debt.
How is Lincoln Electric Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LECO's short term assets ($1.0B) exceed its short term liabilities ($568.6M).
Long Term Liabilities: LECO's short term assets ($1.0B) exceed its long term liabilities ($970.4M).
Debt to Equity History and Analysis
Debt Level: LECO's debt to equity ratio (116%) is considered high.
Reducing Debt: LECO's debt to equity ratio has increased from 18.2% to 116% over the past 5 years.
Debt Coverage: LECO's debt is well covered by operating cash flow (49.3%).
Interest Coverage: LECO's interest payments on its debt are well covered by EBIT (14.7x coverage).
What is Lincoln Electric Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LECO's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: LECO's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (5.03%).
Stability and Growth of Payments
Stable Dividend: LECO's dividends per share have been stable in the past 10 years.
Growing Dividend: LECO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53.6%), LECO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LECO's dividends in 3 years are forecast to be well covered by earnings (37.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Mapes (58 yo)
Mr. Christopher L. Mapes, also known as Chris, serves as the Chairman, Chief Executive Officer and President of Lincoln Electric Holdings, Inc. (formerly known as The Lincoln Electric Company). Mr. Mapes h ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD6.98M) is about average for companies of similar size in the US market ($USD7.46M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
|Executive VP||3.42yrs||US$1.50m||0.020% |
|Executive Vice President||0.42yr||US$2.67m||0.12% |
|Executive VP & President of International Welding||5.67yrs||US$1.87m||0.049% |
|Executive VP||0.42yr||no data||0.039% |
|Vice President of Investor Relations & Communications||7.5yrs||no data||no data|
|Executive VP & Chief Human Resources Officer||1.58yrs||no data||0.020% |
|Senior VP and President of Global Automation||15yrs||no data||0.015% |
|Executive VP & President of Harris Products Group||6.58yrs||no data||0.035% |
|Senior VP & President of Asia Pacific Region – International Welding||15.67yrs||US$1.27m||0.051% |
|Senior Vice President of Sales & Marketing - North America||6.58yrs||no data||0.022% |
|Senior VP & President of Cleveland Operations – Americas Welding||4yrs||no data||0.018% |
Experienced Management: LECO's management team is seasoned and experienced (6.1 years average tenure).
|Independent Director||13.67yrs||US$227.92k||0.028% |
|Independent Director||14.17yrs||US$232.92k||0.037% |
|Independent Director||31.67yrs||US$214.92k||0.46% |
|Independent Director||25.67yrs||US$224.92k||0.074% |
|Independent Director||19.67yrs||US$214.92k||0.042% |
|Lead Independent Director||2.42yrs||US$239.92k||0.020% |
|Independent Director||7.17yrs||US$224.92k||0.024% |
|Independent Director||5.17yrs||US$214.92k||0.0089% |
|Independent Director||2.58yrs||US$214.92k||0.0019% |
|Independent Director||2.17yrs||US$214.92k||0.00093% |
Experienced Board: LECO's board of directors are considered experienced (7.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LECO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lincoln Electric Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Lincoln Electric Holdings, Inc.
- Ticker: LECO
- Exchange: NasdaqGS
- Founded: 1895
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$5.269b
- Shares outstanding: 59.37m
- Website: https://www.lincolnelectric.com
Number of Employees
- Lincoln Electric Holdings, Inc.
- 22801 St. Clair Avenue
- United States
|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|
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, ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/25 05:57|
|End of Day Share Price||2020/09/24 00:00|
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.