Lincoln Electric Holdings, Inc. (LECO)
POSITIVEPrice
$258.25
Market Cap
$14.15B
Fundamental
71
Technical
75
Composite
72
AI Analysis
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Overview
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products in the United States and internationally. It operates in three segments: Americas Welding, International Welding, and The Harris Products Group. The company offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; and a portfolio of automated solutions and system integration services for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business. It also provides mobile power solutions, including vehicle-mounted compressors, generators, welders, hydraulics, charger/boosters, and electrified power equipment; automated welding system and solutions; and specialty welding consumables, wear plates, and maintenance and repair services for alloy and wear-resistant products, as well as develops and integrates autonomous guided vehicles and mobile robots, custom assembly and test systems, and proprietary manufacturing execution system software. The company serves general fabrication, oil and gas, power generation, process, automotive and transportation, and construction and infrastructure industries, as well as heavy fabrication, ship building, and maintenance and repair markets. It sells its products directly to users of welding products, including OEMs, manufacturers, and integrators, as well as through industrial distributors, retailers, and agents. Lincoln Electric Holdings, Inc. was founded in 1895 and is headquartered in Cleveland, Ohio.
Balance Sheet & Liquidity
Revenue
$4.23B
Net Income
$521M
Free Cash Flow
$404M
Total Equity
$1.47B
Total Liabilities
$2.31B
Current Ratio
1.82
Interest Coverage
-
Debt/EBITDA
3.21
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Fair Value Estimation
Fairly ValuedFair Value
$259.67
Current Price
$258.25
Margin of Safety
+0.5%
Fair Value Range
$181.27 - $338.08
Estimation Methods
Valuation Metrics
P/E Ratio
27.50
ROE
35.4%
P/B Ratio
9.63
P/FCF
35.03
Gross Margin
36.2%
ROIC
20.1%
Value Creation (Economic Moat)
ROIC
20.1%
WACC
9.6%
ROIC − WACC
+10.5 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 45.24%
- Price CAGR 12.91%
- ROIC 20.1%
- Gross Margin 36.2%
- Debt/Equity ratio
- Operating Margin 17.0%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 37.3%
- Revenue Growth 5Y 9.8%
- Analyst Consensus 59% Buy
- Earnings Surprise avg 3.1%
- PEG Ratio 1.19
- Earnings Quality (OCF/NI) 1.27
- Share Dilution 0.0%
- Piotroski F-Score 7/9
Failed (6)
- P/FCF 35.03
- P/B Ratio 9.63
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
- Net Margin Trend 12.3% vs 12.3%
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Price Chart
Technical Indicators
RSI (14)
47.60
SMA 50
$260.09
SMA 200
$252.39
MACD
-0.31
Volatility
1.9%
Momentum (12m)
26.4%
RSI 47.6, SMA trend bullish, momentum 26.4%.
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Steven B. Hedlund | President, CEO & Chairman | 58 |
| Mr. Gabriel Bruno | Executive VP, CFO & Treasurer | 57 |
| Ms. Jennifer I. Ansberry J.D. | Executive VP, General Counsel & Secretary | 51 |
| Ms. Susan C. Edwards | Executive VP & Chief Human Resources Officer | 62 |
| Mr. Michael J. Whitehead | Executive VP & President of Americans Welding | 51 |
| Ms. Amanda H. Butler | Vice President of Investor Relations & Communications | - |
| Mr. Geoffrey P. Allman | Senior Vice President of Acquisition Integration | 54 |
| Mr. Gregory D. Doria | Executive VP & President of International | 48 |
| Ms. Lisa A. Dietrich | Executive VP & Chief Digital Information Officer | 52 |
| Mr. Kevin J. Whaley | Executive VP & President of Global Automation | 52 |
Audit Risk
3
Board Risk
4
Compensation Risk
3
Shareholder Rights Risk
7
Latest News
Recent headlines for LECO, sourced from Markets Gazette.