One-glance verdict
Overvalued
$190.71 our estimate vs market $262.00
Wall Street consensus: $297.00 (55.7% higher than our fair-value estimate)
37% above our estimate, beyond the bull case
Fundamentals snapshot
Lincoln Electric Holdings, Inc.
LECO · NMS · Industrials · Tools & Accessories
Current price
$262.00
52-week range
$216.22 - $310.00
Market cap
$14.35B
Balance sheet
Watch
14.28x Strong cushion
Net debt $907.61M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.9% last year.
- Reward Returns 37.7% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 16.5% above its 5-year average P/E.
What this company does
Lincoln Electric Holdings, Inc.
Lincoln Electric is a major producer of welding and cutting equipment, selling everything from the tools used by a local mechanic to large robotic systems for car factories. The company makes most of its money from these sales to a wide variety of industries, such as construction and manufacturing. Because its products are essential for building and making things, the company's health often reflects the strength of the broader industrial economy.
How the company got here
Founded in 1895 in Cleveland, Ohio, with a $200 investment, Lincoln Electric started by developing and selling an innovative electric motor. The company entered the welding industry in 1911 by launching its first variable voltage arc welder, a move that would define its future. Over the decades, it has grown into a global leader in welding and cutting, known for its focus on innovation and a unique corporate culture based on the "Golden Rule." Key expansions include a significant increase in its automation capabilities through acquisitions and a major international growth step with the purchase of Air Liquide Welding in 2017.
What it actually does
Lincoln Electric makes the tools and materials needed to join or cut metal, a process essential for everything from building skyscrapers and ships to manufacturing cars and home appliances. Think of the bright arc and sparks you see in construction or manufacturing – that's welding, and Lincoln Electric provides the machines that create the arc, the metal wires that are melted to form the joint (called consumables), and the robotic systems that do this work automatically. They also produce equipment for cutting metal with high-temperature plasma or gas, as well as related safety gear and fume control systems to keep workers safe.
Americas Welding
This is the company's largest and most profitable business segment, covering welding operations in North and South America. It sells a wide range of welding equipment, from simple machines for a home garage to highly complex robotic systems for large factories, as well as the necessary consumable materials like wire and electrodes. This segment is the core of the company, generating the majority of its revenue by selling to industries like general manufacturing, automotive, and construction.
International Welding
This segment mirrors the Americas business but operates in Europe, Asia, Africa, and Australia. It provides welding and cutting products to a wide array of international customers in manufacturing, energy, and shipbuilding. While a significant part of the company, its performance can be affected by regional economic trends, such as slowing demand in Europe. This segment was significantly expanded by the acquisition of Air Liquide Welding, which broadened Lincoln Electric's global reach.
The Harris Products Group
This part of the company is more specialized, focusing on products for brazing and soldering (methods of joining metal at lower temperatures than welding), as well as oxy-fuel cutting equipment and specialty gas regulators. Its customers are often in the HVAC (heating, ventilation, and air conditioning), refrigeration, and plumbing industries. The Harris Products Group also manages the company's sales to retail stores, making its products available to smaller businesses and hobbyists.
What management is betting on now
The company's current strategy, called the "Higher Standard 2025 Strategy," focuses heavily on growing its automation business. Management is acquiring companies that specialize in robotic systems to expand its role in factory workflows beyond just welding. They are also focused on developing more energy-efficient and innovative products to help their customers meet their own sustainability goals (a company's efforts to reduce its environmental impact). This dual focus on automation and sustainability is intended to drive future growth and profitability.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$140.34M
FY2024 Q4
$87.45M
FY2025 Q1
$158.74M
FY2025 Q2
$118.39M
FY2025 Q3
$179.61M
FY2025 Q4
$77.46M
FY2026 Q1
$63.01M
FY2026 Q2
$222.33M
Revenue
$1.22B
Net income
$158.52M
Diluted EPS
2.88
Operating cash flow
$253.76M
Free cash flow
$222.33M
Fetching…
Sources
Revenue
$1.12B
Net income
$136.38M
Diluted EPS
2.47
Operating cash flow
$102.17M
Free cash flow
$63.01M
Fetching…
Sources
Revenue
$1.08B
Net income
$136.02M
Diluted EPS
2.45
Operating cash flow
$94.97M
Free cash flow
$77.46M
Fetching…
Sources
Revenue
$1.06B
Net income
$122.63M
Diluted EPS
2.21
Operating cash flow
$236.69M
Free cash flow
$179.61M
Fetching…
Sources
Revenue
$1.09B
Net income
$143.40M
Diluted EPS
2.56
Operating cash flow
$143.83M
Free cash flow
$118.39M
Fetching…
Sources
Revenue
$1.00B
Net income
$118.49M
Diluted EPS
2.10
Operating cash flow
$185.69M
Free cash flow
$158.74M
Fetching…
Sources
Revenue
$1.02B
Net income
$140.23M
Diluted EPS
2.47
Operating cash flow
$95.80M
Free cash flow
$87.45M
Fetching…
Sources
Revenue
$983.76M
Net income
$100.76M
Diluted EPS
1.77
Operating cash flow
$199.20M
Free cash flow
$140.34M
Fetching…
Sources
Is it cheap or expensive?
Fair value $190.71 vs current price $262.00
Wall Street consensus is the average analyst price target: $297.00 (55.7% higher than our fair-value estimate).
Our most-likely fair value is $190.71 a share — about 27.2% below today's price of $262.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $907.6M. Interest coverage 14.3x.
Net debt
$907.61M
Interest coverage
14.28x
Lincoln Electric Holdings, Inc.'s profit covers its interest bill about 14.3 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LECO
BASELINE
Lincoln Electric Holdings, Inc.
Total debt $1.15B Interest coverage 14.28x This is the baseline the peer rows are being compared against.
Total debt $9.69B Interest coverage 14.44x +1% vs LECO Has roughly the same debt cushion as LECO.
Total debt $2.14B Interest coverage 5.24x -63% vs LECO Carries about 2.7x less debt cushion than LECO.
Total debt $4.76B Interest coverage 2.43x -83% vs LECO Carries about 5.9x less debt cushion than LECO.
Total debt $52.21M Interest coverage 211.11x +1,378% vs LECO Carries about 14.8x more debt cushion than LECO.
Total debt $2.20B Interest coverage 5.13x -64% vs LECO Carries about 2.8x less debt cushion than LECO.
What you should know
The case for and against LECO
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.9% last year.
-
Returns 37.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 16.5% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.17x
Forward P/E
21.53x
P/B
9.50x
P/S
3.20x
EV/EBITDA
16.93x
PEG ratio
1.69x
Profitability
How much profit each dollar creates
Gross margin
36.1%
Operating margin
18.4%
Net margin
12.4%
ROE
37.7%
ROA
12.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.74x
Current ratio
1.98x
Quick ratio
0.93x
Total debt
$1.15B
Total cash
$242.44M
Growth
How the business has been compounding
Revenue TTM
$4.48B
Revenue 5Y CAGR
7.0%
EPS TTM
10.01
EPS 5Y CAGR
5.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$687.59M
Free CF TTM
$534.20M
FCF margin
11.9%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
31.2%
Last ex-div date
2026-09-30