Lincoln Electric Holdings, Inc. (LECO)
NEUTRALFundamental
69
Price
$279.25
Market Cap
$15.36B
Part 1 · What the company is worth
Overview
Lincoln Electric makes the equipment and consumable materials used to weld and cut metal: arc welding machines, robotic welding cells, and the wire and electrodes that get used up with every weld. Customers range from individual fabrication shops to large manufacturers building cars, ships and pipelines, and from automotive plants to oxy-fuel and plasma cutting equipment sold through its Harris Products brands.
How it makes money
Revenue comes from selling welding machines and cutting equipment once, and then from repeat sales of the wire, electrodes and gases those machines consume with every use — a razor-and-blades pattern where the installed base of equipment drives recurring consumable demand. Automation and robotic welding systems add a growing, higher-value equipment line on top of that base.
Revenue by segment
Welding equipment, consumables and robotic systems sold across North and South America, the company's largest and most profitable segment.
The same welding equipment and consumables business run across Europe, the Middle East, Africa and Asia Pacific.
Gas welding, cutting, brazing and soldering equipment and alloys, a distinct product line from arc welding.
Competitive moat
Brand · NarrowLincoln Electric has sold welding equipment under its own name for over a century and trains welders on it in its own educational programs, which builds habit and trust among tradespeople who choose equipment based on reliability in the field. The advantage is real but not unbreachable: welding equipment from established rivals performs comparably, and price competition is common outside premium industrial accounts.
What drives demand
CyclicalEquipment sales follow industrial capital spending — construction, energy, shipbuilding and manufacturing capacity expansion — which slows in recessions and accelerates in upcycles. Consumables demand is steadier because welding continues on equipment already installed, but it too softens when factories run fewer shifts.
Key risks
- Cyclicality of industrial capital spending — Demand for welding equipment tracks broader industrial and construction activity, and a downturn in end markets such as energy, automotive or heavy fabrication reduces both equipment and consumables volumes.
- Raw material cost volatility — Steel, copper, nickel and other metals used in welding wire and equipment are subject to price swings that the company may not always be able to pass through to customers quickly.
- International and currency exposure — Roughly a third of revenue is generated outside the Americas, exposing results to foreign currency translation and to economic and political conditions in the countries where the company operates.
- Competition on price and technology — The company competes against both established global welding equipment makers and lower-cost regional manufacturers, particularly in commodity consumables where differentiation is harder to sustain.
The case for
Buyers argue that the recurring consumables business cushions the cycle, that the brand and its century of training relationships keep tradespeople loyal, and that growth in automation and robotic welding gives the company a higher-value line to sell into the same installed customer base.
The case against
Sellers fear that equipment sales remain tied to an industrial capital-spending cycle the company cannot control, that raw material cost swings can compress margins between price increases, and that regional low-cost competitors keep pressure on consumables pricing where brand loyalty matters least.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$4.48B
Trailing 12 months (through 6/30/2026)
Net Income
$554M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$534M
Total Equity
$1.47B
Total Liabilities
$2.31B
Current Ratio
1.98
Interest Coverage
13.06
Debt/EBITDA
1.47
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$288.73
Current Price
$279.25
Margin of Safety
+3.3%
Fair Value Range
$198.35 - $379.11
Estimation Methods
Valuation Metrics
P/E Ratio
28.20
ROE
35.4%
P/B Ratio
9.90
P/FCF
28.36
Gross Margin
36.0%
ROIC
20.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
20.7%
WACC
10.7%
ROIC − WACC
+10.1 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- Price CAGR 13.90%
- ROIC 20.7%
- Gross Margin 36.0%
- P/FCF 28.36
- Debt/Equity ratio
- Operating Margin 17.1%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 37.2%
- Revenue Growth 5Y 9.8%
- Analyst Consensus 61% Buy
- PEG Ratio 1.25
- Earnings Quality (OCF/NI) 1.24
- Share Dilution -2.3%
- Net Margin Trend 12.4% vs 12.3%
- Piotroski F-Score 6/9
Failed (7)
- EPS CAGR 3.82%
- P/B Ratio 9.90
- CapEx intensity
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg 1.1%
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Steven B. Hedlund | President, CEO & Chairman | 58 |
| Mr. Gabriel Bruno | Executive VP, CFO & Treasurer | 57 |
| Ms. Jennifer I. Ansberry J.D. | Executive VP, General Counsel & Secretary | 51 |
| Ms. Susan C. Edwards | Executive VP & Chief Human Resources Officer | 62 |
| Mr. Michael J. Whitehead | Executive VP & President of Americans Welding | 51 |
| Ms. Amanda H. Butler | Vice President of Investor Relations & Communications | - |
| Mr. Geoffrey P. Allman | Senior Vice President of Acquisition Integration | 54 |
| Mr. Gregory D. Doria | Executive VP & President of International | 48 |
| Ms. Lisa A. Dietrich | Executive VP & Chief Digital Information Officer | 52 |
| Mr. Kevin J. Whaley | Executive VP & President of Global Automation | 52 |
Audit Risk
3
Board Risk
3
Compensation Risk
3
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for LECO, sourced from Markets Gazette.