Lincoln Electric is a manufacturer of welding, cutting, and brazing products, claiming leading market share globally. Alongside rivals ITW and ESAB, Lincoln Electric is one of the top three players offering a complete welding-solutions package, including equipment and consumables, which we think differentiates the firm from smaller competitors.
Lincoln Electric has established one of the most trusted brands in the welding space and enjoys leading market share.
Lincoln Electric's international welding business is not as strong as domestic welding, with operating margins lagging the Americas welding segment by nearly 700 basis points.
|
Metric
|
LECO
|
ESAB
|
ITW
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.38 | 21.56 | 23.93 |
Price/Book Value | 8.68 | 3.79 | 23.22 |
Price/Sales | 2.80 | 2.25 | 4.42 |
Price/Cash Flow | 19.29 | 20.03 | 21.14 |
|
Metric
|
LECO
|
ESAB
|
ITW
|
|---|---|---|---|
Quick Ratio | 1.23 | 0.80 | 0.87 |
Current Ratio | 2.24 | 1.65 | 1.32 |
Interest Coverage | 18.27 | 4.98 | 15.16 |
|
Metric
|
LECO
|
ESAB
|
ITW
|
|---|---|---|---|
Return on Assets (Normalized) | 16.59% | 7.51% | 19.30% |
Return on Equity (Normalized) | 44.77% | 18.72% | 98.30% |
Return on Invested Capital (Normalized) | 24.82% | 12.67% | 28.19% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TTNDY
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TTNDF
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SNA
| Snap-on Inc | Bzhwxzw | Zchzfn | $14.4 Bil | |
SWK
| Stanley Black & Decker Inc | Dshlppjqj | Ghhy | $13.4 Bil | |
SKUFF
| SKF AB Class B | — | Jkn | $9.8 Bil | |
SKFRY
| SKF AB ADR | — | Lshkg | $9.8 Bil | |
RBC
| RBC Bearings Inc | Zcwttrtf | Qglknf | $8.4 Bil | |
TTC
| The Toro Co | — | Hbvxvx | $8.4 Bil | |
CVR
| Chicago Rivet & Machine Co | — | Sqmbd | $15.4 Mil |
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