Lincoln Electric Holdings LECO
United StatesIndustrials · Tools & AccessoriesUSD
304.91 USD (+15.9%)
11 analysts
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Lincoln Electric Holdings is a leading global manufacturer of welding equipment, consumables, and cutting systems, selling to industrial and construction customers through a global distribution and service network.
Key points
from its scores- ✓High-quality business7.3
- ✓Very solid balance sheet7.2
- ✕Demanding valuation4.4
- !Risks to watch5.3
- !Modest dividend5.6
AI analysis
bottom line, main risk, context and newsSolid quality and growth, but the valuation already discounts much of the good prospects.
Lincoln Electric shows solid financial health (Net Debt/EBITDA of 1.08) and exceptional quality (ROE of 37.74%, ROIC of 29.66%), with revenue growth of 12.00% and earnings growth of 12.50%. However, its valuation is demanding (P/E of 26.29, EV/EBITDA of 18.05) and free cash flow conversion is weak (34.70%), which moderates the overall appeal.
The main risk is the demanding valuation (P/E of 26.29) in a rising rate environment, which could compress the multiple if growth decelerates or margins narrow.
Context and risks
Lincoln Electric has no material exposure to current macro factors: its welding and cutting equipment business serves industry in general, without relevant dependence on interest rates, energy commodities, or conflict-affected shipping routes. Its balance sheet is moderate (Net Debt/EBITDA of 1.08) and its operating margin of 18.24% provides a cushion against any cost pressure.
Is Lincoln Electric Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 26.3 | 25.4 | +3% |
| EV / EBITDA | 18.1 | 14.5 | +25% |
| Price / book | 9.2 | 4.1 | +128% |
| Price / sales | 3.2 | 2.1 | +56% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.4 out of 10 (median for Industrials: 5.0).
Average analyst target: 304.91 USD, +15.9% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 26.3
- Forward P/E
- 21.0
- EV / EBITDA
- 18.1
- Price / book
- 9.2
- Price / sales
- 3.2
- PEG
- 1.55
- Market cap
- 14.3B USD
- Enterprise value
- 16.0B USD
Profitability
- ROE
- 37.7%
- ROA
- 13.0%
- ROIC (approx.)
- 29.7%
- Gross margin
- 36.1%
- Operating margin
- 18.2%
- Net margin
- 12.4%
- Free cash flow
- 307.1M USD
- FCF yield
- 2.1%
- Cash conversion
- 35%
Solvency
- Total debt
- 1.2B USD
- Net debt
- 959.7M USD
- Cash
- 242.4M USD
- EBITDA
- 885.0M USD
- Net debt / EBITDA
- 1.08
- Debt / equity
- 77.35
- Current ratio
- 1.98
- Quick ratio
- 1.02
Growth
- Revenue growth
- +12.0%
- Earnings growth
- +12.5%
- EPS (TTM)
- 10.01 USD
- EPS (forward)
- 12.53 USD
Dividend
- Dividend yield
- 1.2%
- Payout
- 31.2%
Risk and market
- Beta
- 1.22
- Analyst consensus
- Buy (11)
- Target price
- 304.91 USD
- 52-week range
- 216.22 – 310.00
Recent news
All LECO news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Lincoln Electric Holdings
Is Lincoln Electric Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%). Valuation score: 4.4 out of 10 (median for Industrials: 5.0). Average analyst target: 304.91 USD, +15.9% versus the price. This is not investment advice.
What score does Lincoln Electric Holdings get on MeridIAn Screener?
It scores 6.1 out of 10, rank 910 of 2,130 (better than 55% of the companies analysed). Its strongest category is Quality / Moat (7.3) and its weakest, Valuation (4.4). Analysis of 08/10/2026.
What is Lincoln Electric Holdings's P/E ratio?
Its P/E is 26.3: the share price equals 26.3 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 21.0.
How much is Lincoln Electric Holdings worth on the stock market?
Its market capitalisation is 14.3B USD and its enterprise value, debt included, is 16.0B USD.
How much debt does Lincoln Electric Holdings have?
Its net debt (debt minus cash) is 959.7M USD. That is 1.08 times its EBITDA; the Industrials median is 1.58.
Does Lincoln Electric Holdings pay a dividend?
Yes: its dividend yield is 1.20% and it pays out 31% of its earnings.
How has Lincoln Electric Holdings stock performed over the last year?
It has risen 16.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 216.22 and 310.00 USD. Past performance does not guarantee future results.
What do analysts think of Lincoln Electric Holdings?
11 analysts cover it; their average recommendation is “Buy” and their average target is 304.91 USD (+15.9% versus the price). It is an estimate, not market data.