Lincoln Electric Holdings Inc

Industrials
Industrial Machinery/Components
www.lincolnelectric.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $11.84B
PE 25
Debt $1.15B
Cash $404.22M
EV $12.59B
FCF $515.20M

Earnings

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Sales & Net Margins

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Earnings	$482.52M
EBIT	$663.48M
ROE	36%
ROA	18%
FCF	$515.20M
Equity	$1.34B
Growth Stability	75%
PE	24.55
PEG	1.04
PB	8.84
P/FCF	22.99
P/S	2.93
Price/Cash	0.03
Debt/Equity	0.86
Debt/FCF	2.23
Net Margins	11%
Gross Margins	36%
Op. Margins	16%
Earnings CAGR	15%
Sales Growth YoY	-5%
Sales Growth QoQ	-4%
Sales CAGR	7%
FCF CAGR	9%
Equity CAGR	2%
Earnings Stability	0.71
Earnings Growth YoY	-22%
Earnings Growth QoQ	-1%
Earnings CAGR 5Y	24%

Sales CAGR 5Y	11%
FCF CAGR 5Y	15%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	35%
Equity CAGR 3Y	21%
Market Cap	$11.84B
Revenue	$4.05B
Dividend Yield	1%
Payout Ratio	34%
Assets	$3.66B
Total Debt	$1.15B
Cash	$404.22M
Shares Outstanding	56.43M
EV	12.59B
Earnings Score	91%
Moat Score	95%
Safety Score	89%
Final Score	92%
Working Capital	805.77M
Current Ratio	1.85
Gross Profit	$1.48B
Shares Growth 3y	-1%
Equity Growth QoQ	2%
Equity Growth YoY	9%

Assets & ROA

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Stockholders Equity & ROE

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Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. The firm's portfolio of products includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy and process industries, among other end markets. Based in Cleveland, Ohio, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $3.2 billion in sales and $479 million in adjusted operating income in 2021.

SEC Filings

Direct access to Lincoln Electric Holdings Inc (LECO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Lincoln Electric Holdings Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lincoln Electric Holdings Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 71%

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Lincoln Electric Holdings Inc Discounted Cash Flow

Fully customizable DCF calculator online for Lincoln Electric Holdings Inc.

Years

Calculation mode

= $9.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$515M	$560M	$608M	$661M	$718M	$780M	$847M	$921M	$1B	$1.1B	$1.2B	$12B
DCF		$509M	$503M	$496M	$490M	$484M	$478M	$472M	$467M	$461M	$455M	$4.6B
Value	$9.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	9%	5%	9%	9%	9%	10%	8%	9%	13%	13%	11%
ROA	-	10%	15%	16%	16%	16%	12%	18%	19%	21%	18%
ROE	-	14%	28%	27%	32%	36%	26%	32%	46%	42%	36%

Good Net Margins (10.91%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.37	2.78	2.59	2.72	2.24	2.46	2.55	3.9	1.92	2.23
Debt over Equity	0.06	0.38	0.99	0.76	0.79	0.91	0.91	0.89	1.17	0.84	0.86
Growth Stability	-	-	-	100%	100%	100%	75%	100%	100%	100%	75%

Neutral Debt/FCF ratio (2.23)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.86)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (75%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-10%	-10%	15%	15%	-1%	-12%	22%	16%	11%	11%
Earnings YoY growth	-	-50%	56%	25%	16%	2%	-30%	34%	71%	15%	24%
Equity YoY growth	-	-27%	-24%	31%	-5%	-8%	-4%	9%	20%	27%	16%
FCF YoY growth	-	-21%	-3%	8%	-6%	29%	-12%	4%	3%	85%	15%