Lincoln Electric Holdings (LECO) AI Stock Analysis

• Market Cap: $13.41B
• Dividend Yield: 1.23%
• Average Volume (3M): 353.10K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.08
• Revenue Growth: 3.27%
• EPS Growth: 10.89%
• Country: US
• Employees: 12,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.47
• Shares Outstanding: 55,026,176
• 10 Day Avg. Volume: 289,183
• 30 Day Avg. Volume: 353,100
• PEG Ratio: -1.69
• Price to Book (P/B): 8.00
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 22.01
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 9.22
• Enterprise Value/Ebitda: 17.46
• 1Y Price Target: $274.60
• Price Target Upside: 12.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $269.00 ▲(10.36% Upside)

Lincoln Electric Holdings demonstrates strong financial performance and a positive technical trend, contributing significantly to its overall score. The earnings call highlights steady growth with some challenges, particularly in the automation segment and EMEA region. Valuation metrics suggest the stock is moderately priced, with a modest dividend yield.

Positive Factors

Revenue Growth

The 8% sales increase, driven by pricing strategies, indicates strong market demand and effective pricing power, supporting long-term revenue growth.

Cash Flow Generation

Strong cash flow generation with a high conversion ratio enhances financial flexibility, allowing for reinvestment and shareholder returns.

Profitability

The significant margin expansion reflects improved operational efficiency and cost management, supporting sustainable profitability.

Negative Factors

Automation Segment Challenges

Challenges in the automation segment due to deferred spending could limit growth in this strategic area, impacting future revenue streams.

EMEA Region Weakness

Weak demand in the EMEA region poses a risk to international sales growth, potentially affecting overall revenue and market expansion.

Higher SG&A Expenses

Rising SG&A expenses can pressure margins and reduce profitability, necessitating careful cost management to maintain financial health.

Lincoln Electric Holdings Business Overview & Revenue Model

Company Description

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers welding products, including arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories, and specialty welding consumables and fabrication products. The company's product offering also includes computer numeric controlled plasma and oxy-fuel cutting systems, and regulators and torches used in oxy-fuel welding, cutting, and brazing; and consumables used in the brazing and soldering alloys market. In addition, it is involved in the retail business in the United States. Further, the company manufactures copper and aluminum headers, distributor assemblies, and manifolds for the heating, ventilation, and air conditioning sector in the United States and Mexico. The company serves general fabrication, energy and 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, as well as through industrial distributors, retailers, and agents. The company was founded in 1895 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

Lincoln Electric generates revenue through several key streams, primarily by selling welding and cutting equipment, consumables, and related services. The company operates in multiple geographical regions, with significant sales in North America, Europe, and Asia, capitalizing on the growing demand for welding solutions in various industries. A substantial portion of its revenue comes from the sale of welding consumables, which includes electrodes and wires used in welding processes. Additionally, Lincoln Electric earns income through the sale of automated welding systems and robotic solutions, catering to manufacturers seeking to enhance productivity and efficiency. The company also provides training, technical support, and maintenance services, creating long-term relationships with customers. Strategic partnerships with industrial manufacturers and distributors enhance its market reach and contribute to its earnings by expanding product availability and customer access.

Lincoln Electric Holdings Financial Statement Overview

Summary

Lincoln Electric Holdings exhibits strong financial health with consistent revenue growth and profitability. The company maintains a balanced leverage position and demonstrates effective cash flow management. Minor fluctuations in operating efficiency are noted, but the overall financial trajectory remains positive.

Income Statement

Lincoln Electric Holdings demonstrates strong revenue growth with a TTM increase of 1.89%, following a slight decline in the previous year. The gross profit margin remains stable at around 36%, indicating efficient cost management. The net profit margin has improved to 12.56% TTM, showcasing enhanced profitability. However, the EBIT margin has slightly decreased to 12.58% TTM, suggesting some pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.94 TTM, reflecting a balanced approach to leveraging. Return on equity is robust at 38.43% TTM, indicating strong profitability relative to shareholder equity. The equity ratio stands at 37.08% TTM, suggesting a solid equity base, though there is room for improvement in asset financing.

Cash Flow

Lincoln Electric Holdings shows a healthy free cash flow growth of 8.23% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.26 TTM, reflecting efficient cash conversion. The free cash flow to net income ratio is 0.83 TTM, demonstrating effective cash management despite a slight decline from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.18B	4.01B	4.19B	3.76B	3.23B	2.66B
Gross Profit	1.53B	1.48B	1.48B	1.28B	1.07B	871.34M
EBITDA	808.21M	800.52M	789.48M	708.11M	675.23M	410.35M
Net Income	524.74M	466.11M	545.25M	472.22M	276.58M	206.12M
Balance Sheet
Total Assets	3.82B	3.52B	3.38B	3.18B	2.59B	2.31B
Cash, Cash Equivalents and Short-Term Investments	293.00M	377.26M	393.79M	197.15M	192.96M	257.28M
Total Debt	1.29B	1.32B	1.16B	1.25B	819.00M	763.68M
Total Liabilities	2.40B	2.19B	2.07B	2.15B	1.73B	1.52B
Stockholders Equity	1.41B	1.33B	1.31B	1.03B	864.10M	789.27M
Cash Flow
Free Cash Flow	546.49M	482.37M	576.55M	311.50M	302.53M	292.16M
Operating Cash Flow	662.00M	598.98M	667.54M	383.39M	365.06M	351.36M
Investing Cash Flow	-240.15M	-361.23M	-74.73M	-504.69M	-205.36M	-49.21M
Financing Cash Flow	-517.74M	-244.64M	-412.39M	133.72M	-221.94M	-246.14M

Lincoln Electric Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LECO, the sentiment is Positive. The current price of 243.75 is above the 20-day moving average (MA) of 235.95, above the 50-day MA of 235.36, and above the 200-day MA of 215.93, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 81.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LECO.

Lincoln Electric Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNA	78 Outperform	$18.25B	18.39	17.96%	2.53%	0.24%	-1.85%
LECO	77 Outperform	$13.41B	26.12	38.11%	1.23%	3.27%	10.89%
RBC	77 Outperform	$14.55B	56.15	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$6.09B	20.67	9.80%	1.59%	-1.01%	-12.13%
KMT	72 Outperform	$2.23B	24.08	7.36%	2.73%	-2.63%	-4.46%
SWK	68 Neutral	$11.72B	26.18	4.92%	4.36%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Lincoln Electric Holdings Corporate Events

Lincoln Electric Reports Strong Q3 2025 Results

Lincoln Electric Holdings, Inc. is a global leader in the engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, and plasma and oxy-fuel cutting equipment, with a strong presence in brazing and soldering alloys. The company, headquartered in Cleveland, Ohio, operates in over 160 countries, providing innovative solutions to enhance fabrication capabilities worldwide.

Lincoln Electric’s Strong Q2 2025 Performance and Strategic Growth

Lincoln Electric Holdings, Inc., headquartered in Cleveland, Ohio, is a global leader in the engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, and holds a prominent position in brazing and soldering alloys. The company operates 71 manufacturing and automation system integration locations across 20 countries, serving customers in over 160 countries worldwide.

Lincoln Electric’s Strong Q2 Performance Amid Challenges

The recent earnings call for Lincoln Electric showcased a balanced outlook, highlighting strong financial performance in the second quarter of 2025. The company demonstrated positive impacts from acquisitions and effective cost management strategies. However, challenges such as volume declines, trade policy uncertainties affecting customer spending, and increased costs impacting margins were also noted.