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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
33.0%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.27%
Trailing Yield
$1.27
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
35%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LINCOLN ELECTRIC HOLDINGS INC (LECO) receives a "Hold" rating with a composite score of 51.4/100, ranked #840 out of 4446 stocks. Key factor scores: Quality 50/100, Value 60/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
LINCOLN ELECTRIC HOLDINGS INC (LECO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LINCOLN ELECTRIC HOLDINGS INC Do?
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. LINCOLN ELECTRIC HOLDINGS INC (LECO) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Christopher L. Mapes and employs approximately 12,000 people, headquartered in Cleveland, Ohio. With a market capitalization of $13.7B, LECO is one of the prominent companies in the Industrials sector.
LINCOLN ELECTRIC HOLDINGS INC (LECO) Stock Rating — Hold (April 2026)
As of April 2026, LINCOLN ELECTRIC HOLDINGS INC receives a Hold rating with a composite score of 51.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LECO ranks #840 out of 4,446 stocks in our coverage universe. Within the Industrials sector, LINCOLN ELECTRIC HOLDINGS INC ranks #141 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LECO Stock Price and 52-Week Range
LINCOLN ELECTRIC HOLDINGS INC (LECO) currently trades at $256.26. The stock gained $0.15 (0.1%) in the most recent trading session. The 52-week high for LECO is $310.00, which means the stock is currently trading -17.3% from its annual peak. The 52-week low is $161.11, putting the stock 59.1% above its annual trough. Recent trading volume was 207K shares, suggesting relatively thin trading activity.
Is LECO Overvalued or Undervalued? — Valuation Analysis
LINCOLN ELECTRIC HOLDINGS INC (LECO) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 27.35x, compared to the Industrials sector average of 28.33x — a discount of 3%. The price-to-book ratio stands at 9.03x, versus the sector average of 2.23x. The price-to-sales ratio is 3.21x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, LECO trades at 19.54x EV/EBITDA, versus 5.70x for the sector.
Overall, LECO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LINCOLN ELECTRIC HOLDINGS INC Profitability — ROE, Margins, and Quality Score
LINCOLN ELECTRIC HOLDINGS INC (LECO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 33.0%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 12.8% versus the sector average of 3.3%.
On a margin basis, LINCOLN ELECTRIC HOLDINGS INC reports gross margins of 36.5%, compared to 35.8% for the sector. The operating margin is 16.4% (sector: 6.2%). Net profit margin stands at 11.7%, versus 3.9% for the average Industrials stock. Revenue growth is running at 3.9% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LECO Debt, Balance Sheet, and Financial Health
LINCOLN ELECTRIC HOLDINGS INC has a debt-to-equity ratio of 157.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.82x, suggesting adequate working capital coverage. Cash and equivalents stand at $293M.
LECO has a beta of 1.08, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LINCOLN ELECTRIC HOLDINGS INC is 73/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
LINCOLN ELECTRIC HOLDINGS INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, LINCOLN ELECTRIC HOLDINGS INC reported revenue of $4.14B and earnings per share (EPS) of $9.39. Net income for the quarter was $485M. Gross margin was 36.5%. Operating income came in at $679M.
In FY 2025, LINCOLN ELECTRIC HOLDINGS INC reported revenue of $4.23B and earnings per share (EPS) of $9.39. Net income for the quarter was $521M. Gross margin was 36.3%. Revenue grew 5.6% year-over-year compared to FY 2024. Operating income came in at $718M.
In Q3 2025, LINCOLN ELECTRIC HOLDINGS INC reported revenue of $1.06B and earnings per share (EPS) of $2.23. Net income for the quarter was $123M. Gross margin was 36.7%. Revenue grew 7.9% year-over-year compared to Q3 2024. Operating income came in at $177M.
In Q2 2025, LINCOLN ELECTRIC HOLDINGS INC reported revenue of $1.09B and earnings per share (EPS) of $2.58. Net income for the quarter was $143M. Gross margin was 37.3%. Revenue grew 6.6% year-over-year compared to Q2 2024. Operating income came in at $192M.
Over the past 8 quarters, LINCOLN ELECTRIC HOLDINGS INC has demonstrated a growth trajectory, with revenue expanding from $1.02B to $4.14B. Investors analyzing LECO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LECO Dividend Yield and Income Analysis
LINCOLN ELECTRIC HOLDINGS INC (LECO) currently pays a dividend yield of 1.3%. At this yield, a $10,000 investment in LECO stock would generate approximately $$127.00 in annual dividend income. The net margin of 11.7% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
LECO Momentum and Technical Analysis Profile
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LECO vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing LECO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LECO vs S&P 500 (SPY) comparison to assess how LINCOLN ELECTRIC HOLDINGS INC stacks up against the broader market across all factor dimensions.
LECO Next Earnings Date
No upcoming earnings date has been announced for LINCOLN ELECTRIC HOLDINGS INC (LECO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LECO? — Investment Thesis Summary
LINCOLN ELECTRIC HOLDINGS INC presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 73/100) reduces downside risk.
In summary, LINCOLN ELECTRIC HOLDINGS INC (LECO) earns a Hold rating with a composite score of 51.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LECO stock.
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Institutional Research Dossier
LINCOLN ELECTRIC HOLDINGS INC (LECO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Lincoln Electric (LECO). While the company exhibits strong profitability and operational efficiency, as evidenced by its superior ROE and margins compared to the industrial sector, its valuation appears to be largely in line with its growth prospects. The company's exposure to cyclical industries and its relatively high debt-to-equity ratio introduce elements of risk that temper our enthusiasm, warranting a neutral stance.
The core takeaway is that Lincoln Electric is a well-managed company operating in a cyclical industry. Its ability to consistently generate high returns on equity and maintain robust margins is commendable. However, investors should be mindful of the potential impact of economic downturns on the company's revenue and profitability, as well as the implications of its debt load. A more attractive entry point may present itself during periods of economic uncertainty.
Business Strategy & Overview
Lincoln Electric operates through three primary segments: Americas Welding, International Welding, and The Harris Products Group. The Americas Welding segment focuses on the North and South American markets, providing welding equipment, consumables, and automation solutions. The International Welding segment serves markets outside the Americas, offering a similar range of products and services. The Harris Products Group specializes in brazing and soldering alloys, as well as cutting and gas regulation equipment. This diversified geographic and product portfolio allows Lincoln Electric to cater to a wide range of industries, including general fabrication, energy, automotive, construction, and shipbuilding.
The company's strategic positioning revolves around providing comprehensive welding and cutting solutions, including equipment, consumables, and automation systems. This integrated approach allows Lincoln Electric to capture a larger share of the customer's spending and build stronger relationships. Furthermore, the company invests in research and development to innovate and introduce new products, maintaining its competitive edge. Lincoln Electric also focuses on operational efficiency and cost management to improve profitability and maintain its strong margins.
Lincoln Electric's distribution strategy involves a combination of direct sales to large customers and sales through industrial distributors, retailers, and agents. This multi-channel approach allows the company to reach a broad customer base and adapt to different market conditions. The company's retail presence in the United States further enhances its accessibility to smaller customers and DIY enthusiasts.
The welding and cutting industry is characterized by a mix of large global players and smaller regional competitors. Lincoln Electric competes with companies such as Illinois Tool Works (ITW), ESAB (Colfax Corporation), and Miller Electric (part of ITW). The industry is influenced by macroeconomic factors, such as industrial production, construction activity, and energy prices. Demand for welding and cutting products tends to be cyclical, with periods of strong growth followed by periods of slower growth or decline. Lincoln Electric's ability to navigate these cycles is crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.9%
Sector: 6.4%
-39% VS SCTR
Economic Moat Analysis
Lincoln Electric possesses a narrow economic moat, primarily derived from its brand reputation and established distribution network. The company has been in operation for over a century, building a strong brand name associated with quality and reliability in the welding industry. This reputation provides a degree of pricing power and customer loyalty, particularly among professional welders and industrial users who rely on dependable equipment and consumables.
The company's extensive distribution network, encompassing direct sales, industrial distributors, retailers, and agents, provides a competitive advantage by ensuring broad market access and efficient delivery of products. This network has been built over many years and would be difficult for new entrants to replicate quickly. The distribution network also allows Lincoln Electric to provide value-added services, such as technical support and training, which further strengthens customer relationships.
While Lincoln Electric benefits from its brand and distribution network, the welding industry is not characterized by high switching costs. Customers can relatively easily switch between different brands of welding equipment and consumables, particularly if offered a lower price or superior performance. This limits the company's ability to extract excessive profits and maintain a wide economic moat.
The welding industry also lacks significant network effects. The value of Lincoln Electric's products and services does not increase significantly as more customers use them. This contrasts with industries such as social media or software, where network effects can create a strong competitive advantage.
Furthermore, while Lincoln Electric has a strong market position, it faces competition from other well-established players, such as Illinois Tool Works and ESAB. These competitors also have strong brands and distribution networks, limiting Lincoln Electric's ability to dominate the market. Therefore, while Lincoln Electric possesses some competitive advantages, they are not strong enough to warrant a wide economic moat rating.
Financial Health & Profitability
Lincoln Electric has demonstrated a consistent track record of revenue growth, although the rate of growth has fluctuated depending on economic conditions. The company's revenue increased from $4.01 billion in FY2024 to $4.23 billion in FY2025, representing a growth rate of approximately 5.5%. This growth is slightly below the sector average of 6.6%. However, the company's profitability metrics are significantly stronger than the sector average. Lincoln Electric's gross margin of 36.5% and operating margin of 16.4% are substantially higher than the sector averages of 35.8% and 6.2%, respectively. This indicates that Lincoln Electric is more efficient at managing its costs and generating profits than its peers.
The company's return on equity (ROE) of 33.0% is exceptionally high, significantly exceeding the sector average of 9.2%. This demonstrates that Lincoln Electric is effectively utilizing its equity to generate profits. The company's net margin of 11.7% is also significantly higher than the sector average of 3.7%, further highlighting its superior profitability.
Lincoln Electric's balance sheet exhibits a current ratio of 1.82, indicating a healthy level of liquidity. This suggests that the company has sufficient current assets to cover its current liabilities. However, the company's debt-to-equity ratio of 157.00 is relatively high compared to the sector average of 70.00. This indicates that Lincoln Electric relies more heavily on debt financing than its peers, which could increase its financial risk.
Analyzing the quarterly financial history reveals a consistent pattern of revenue and profit generation. The company's revenue has remained relatively stable over the past several quarters, with some fluctuations due to seasonal factors and economic conditions. The company's operating margin has also remained consistently strong, indicating its ability to maintain profitability even during periods of economic uncertainty. The absence of free cash flow data prevents a full assessment of cash generation capabilities.
Valuation Assessment
Lincoln Electric's valuation appears to be largely in line with its growth prospects and profitability. The company's price-to-earnings (P/E) ratio of 26.6x is slightly below the sector average of 27.7x, suggesting that the stock is fairly valued relative to its earnings. However, the P/E ratio does not fully capture the company's superior profitability and returns on equity.
The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 4.8x is also below the sector average of 5.7x, indicating that the stock is relatively undervalued based on its earnings before interest, taxes, depreciation, and amortization. This metric suggests that the market may not be fully appreciating the company's strong cash flow generation capabilities.
Given the company's high ROE and strong margins, a premium valuation might be warranted. However, the company's exposure to cyclical industries and its relatively high debt-to-equity ratio introduce elements of risk that temper our enthusiasm. The lack of free cash flow data also makes it difficult to assess the company's true valuation.
Overall, Lincoln Electric's valuation appears to be fair, reflecting its strong profitability and growth prospects, while also accounting for the risks associated with its cyclical business and debt load. A more attractive entry point may present itself during periods of economic uncertainty, when the stock price may decline due to concerns about the company's revenue and profitability.
Risk & Uncertainty
Lincoln Electric faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its exposure to cyclical industries, such as manufacturing, construction, and energy. Demand for welding and cutting products tends to be highly correlated with economic activity in these sectors. A slowdown in economic growth or a recession could lead to a decline in demand for Lincoln Electric's products, resulting in lower revenue and profitability.
Another risk is the company's relatively high debt-to-equity ratio. While the company's current ratio indicates a healthy level of liquidity, its reliance on debt financing could increase its financial risk, particularly during periods of economic uncertainty. Higher interest rates could also increase the company's borrowing costs, further impacting its profitability.
Competition from other well-established players in the welding industry, such as Illinois Tool Works and ESAB, also poses a risk to Lincoln Electric's market share and profitability. These competitors have strong brands and distribution networks, and they may be able to offer lower prices or superior products, attracting customers away from Lincoln Electric.
Furthermore, changes in government regulations, such as environmental regulations or trade policies, could negatively impact Lincoln Electric's business. For example, stricter environmental regulations could increase the company's manufacturing costs, while trade barriers could limit its access to international markets.
Bulls Say / Bears Say
The Bull Case
BULL VIEWLincoln Electric's superior profitability and high ROE compared to its peers justify a premium valuation, as the company consistently demonstrates efficient capital allocation and strong operational execution.
BULL VIEWThe company's established brand reputation and extensive distribution network provide a sustainable competitive advantage, allowing it to maintain its market position and generate consistent revenue growth.
BULL VIEWLincoln Electric's strategic focus on automation and integrated welding solutions positions it to benefit from the increasing demand for advanced welding technologies, driving future growth and profitability.
The Bear Case
BEAR VIEWLincoln Electric's exposure to cyclical industries makes it vulnerable to economic downturns, which could significantly impact its revenue and profitability, leading to a decline in its stock price.
BEAR VIEWThe company's relatively high debt-to-equity ratio increases its financial risk, particularly during periods of economic uncertainty, potentially limiting its ability to invest in growth opportunities.
BEAR VIEWThe welding industry is highly competitive, and Lincoln Electric faces increasing pressure from other well-established players, potentially eroding its market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LECO and 4,400+ other equities.
LINCOLN ELECTRIC HOLDINGS INC exhibits a 272% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
12.8%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
36.5%
Sector: 35.8%
Operating Margin
Core business profitability
16.4%
Sector: 6.2%
Net Margin
Bottom-line profitability
11.7%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $127 annually in dividends at the current trailing rate.
