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Lincoln Electric Holdings Inc LECO

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Lincoln Electric Posts Strong Q2, Driven by Continued Volume Recovery; Increasing FVE to $124

Analyst Note

| Krzysztof Smalec, CFA |

Narrow-moat rated Lincoln Electric posted strong second-quarter results, as its sales of $826 million and adjusted EPS of $1.67 both easily surpassed FactSet consensus estimates of $790 million and $1.48. We are increasing our fair value estimate for Lincoln Electric to $124 from $115, which reflects the firm’s outperformance, an improved near-term outlook, and our more optimistic operating margin projections.

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Company Profile

Business Description

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 $2.7 billion in sales and $328 million in adjusted operating income in 2020.

Contact
22801 St. Clair Avenue
Cleveland, OH, 44117
T +1 216 481-8100
Sector Industrials
Industry Tools & Accessories
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 10,700

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