Lincoln Electric Holdings (LECO) AI Stock Analysis

• Market Cap: $12.76B
• Dividend Yield: 1.29%
• Average Volume (3M): 319.55K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.10
• 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: 402,806
• 30 Day Avg. Volume: 319,550
• 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: 1.11
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 9.22
• Enterprise Value/Ebitda: 17.46
• 1Y Price Target: $256.40
• Price Target Upside: 10.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $266.00 ▲(14.74% Upside)

Lincoln Electric Holdings demonstrates strong financial performance and a cautiously optimistic outlook from its earnings call, despite some regional and segment-specific challenges. Technical indicators suggest a neutral trend, and the valuation is fair, contributing to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth through strategic pricing and acquisitions demonstrates the company's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation allows the company to invest in growth opportunities, reduce debt, and return capital to shareholders, enhancing financial stability and flexibility.

Dividend Increase

Increasing dividends reflect confidence in the company's cash flow stability and commitment to returning value to shareholders, reinforcing investor trust and long-term attractiveness.

Negative Factors

International Segment Challenges

Ongoing challenges in international markets could hinder overall growth, as regional demand fluctuations impact sales and operational efficiency, posing risks to global expansion strategies.

Heavy Industries Challenges

Persistent difficulties in heavy industries and automotive sectors could limit revenue growth potential, as these markets are significant contributors to the company's sales portfolio.

Volume Declines

Volume declines due to deferred capital spending highlight potential vulnerabilities in demand, affecting equipment and automation sales, which could impact future revenue stability.

Lincoln Electric Holdings Business Overview & Revenue Model

Company Description

Lincoln Electric Holdings, Inc. is a global leader in the manufacturing of welding, cutting, and joining solutions. Founded in 1895 and headquartered in Cleveland, Ohio, the company operates in various sectors, including industrial manufacturing, construction, and energy. Lincoln Electric offers a comprehensive range of products, including arc welding equipment, robotic welding systems, plasma cutting machines, and filler metals, along with automation solutions and training services to enhance productivity and efficiency in welding processes.

How the Company Makes Money

Lincoln Electric generates revenue primarily through the sale of welding products and related services. Its key revenue streams include the manufacturing and distribution of welding equipment, consumables, and automation solutions. The company benefits from a diverse customer base across multiple industries, which helps mitigate risks associated with market fluctuations. Significant partnerships with industrial manufacturers and distributors enhance Lincoln Electric's market presence and drive sales. Additionally, the company's focus on innovation and development of advanced welding technologies allows it to maintain a competitive edge, further contributing to its earnings.

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	1.33B	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	863.91M	790.25M
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: Neutral
• Last Price: 231.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LECO, the sentiment is Neutral. The current price of 231.82 is below the 20-day moving average (MA) of 237.39, below the 50-day MA of 238.10, and above the 200-day MA of 211.03, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LECO.

Lincoln Electric Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	―	$13.54B	52.27	8.54%	―	8.27%	19.06%
TKR	―	$5.43B	18.44	9.80%	1.77%	-1.01%	-12.13%
LECO	―	$12.76B	24.84	38.11%	1.29%	3.27%	10.89%
SNA	―	$17.57B	17.71	17.96%	2.53%	0.24%	-1.85%
SWK	―	$10.27B	21.04	5.38%	4.86%	-2.71%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KMT	―	$1.69B	18.55	7.35%	3.49%	-3.91%	-12.49%

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.