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Lincoln Electric Holdings Inc LECO

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Stock XNAS Rating as of
$227.93 −9.68 (4.07%)
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As of Delayed Price Closed
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Company Report

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Lincoln Electric Earnings: Full-Year Outlook Maintained Despite Slow Start to the Year

Krzysztof Smalec

Narrow-moat-rated Lincoln Electric reported mixed first-quarter results, as its revenue of $981 million fell $60 million short of the FactSet consensus estimate, but adjusted EPS of $2.23 beat the consensus by $0.06 thanks to strong margins in Americas welding and the Harris Products Group. We’ve trimmed our fair value estimate to $187 from $190, which reflects our slightly more conservative near-term organic revenue growth projections, partially offset by time value of money. We view the name as modestly overvalued at current levels.

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Price vs Fair Value

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LECO is trading at a 24% premium.
Price
$235.16
Fair Value
$919.00
Uncertainty
Medium
1-Star Price
$329.80
5-Star Price
$348.00
Economic Moat
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Capital Allocation
Lshbhspkr

Bulls Say, Bears Say

Bulls

Lincoln Electric has established one of the most trusted brands in the welding space and enjoys leading market share.

Bears

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.

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Trading Information

Previous Close Price
$237.61
Day Range
$222.03–233.70
52-Week Range
$155.22–261.13
Bid/Ask
$222.00 / $227.94
Market Cap
$12.95 Bil
Volume/Avg
746,817 / 288,530

Key Statistics

Price/Earnings (Normalized)
26.67
Price/Sales
3.30
Dividend Yield (Trailing)
1.18%
Dividend Yield (Forward)
1.25%
Total Yield
3.32%

Company Profile

Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. The firm’s portfolio of products includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy and process industries, among other end markets. Based in Cleveland, Ohio, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $4.2 billion in sales in 2023.
Sector
Industrials
Industry
Tools & Accessories
Stock Style Box
Mid Growth
Total Number of Employees
12,000
Website
https://www.lincolnelectric.com

Competitors

Valuation

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Metric
LECO
ESAB
ITW
Price/Earnings (Normalized)
 26.6723.2225.56
Price/Book Value
 10.344.0124.66
Price/Sales
 3.302.344.68
Price/Cash Flow
 23.5123.3122.63
Price/Earnings
LECO
ESAB
ITW

Financial Strength

Metric
LECO
ESAB
ITW
Quick Ratio
 1.240.790.92
Current Ratio
 2.241.611.33
Interest Coverage
 16.484.7515.18
Quick Ratio
LECO
ESAB
ITW

Profitability

Metric
LECO
ESAB
ITW
Return on Assets (Normalized)
 16.66%7.13%19.30%
Return on Equity (Normalized)
 46.47%18.40%98.30%
Return on Invested Capital (Normalized)
 25.16%12.03%28.19%
Return on Assets
LECO
ESAB
ITW
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