A Business at a Glance
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ITEM 1. BUSINESS As used in this Annual Report on Form 10-K, the term "Company," except as otherwise indicated by the context, means Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest. Founded in 1895 and incorporated in the state of Ohio in 1906 as The Lincoln Electric Company, the Company reorganized into a holding company structure as Lincoln Electric Holdings, Inc. in 1998. The Company is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. The Company’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.2B | 4.2B | 4.0B | 4.2B | 3.8B | 3.2B |
| Net Income | 521M | 521M | 466M | 545M | 472M | 277M |
| EPS | $9.32 | $9.32 | $8.15 | $9.37 | $8.04 | $4.60 |
| Free Cash Flow | 534M | 534M | 482M | 577M | 312M | 303M |
| ROIC | 15.7% | 19.3% | 18.3% | 22.1% | 21.4% | 23.3% |
| Gross Margin | 36.2% | 36.2% | 36.7% | 35.0% | 34.1% | 33.0% |
| Debt/Equity | 1.60 | 1.60 | 1.93 | 1.73 | 2.21 | 1.72 |
| Dividends/Share | $3.01 | $3.04 | $2.88 | $2.63 | $2.32 | $2.09 |
| Operating Income | 718M | 718M | 636M | 718M | 612M | 462M |
| Operating Margin | 17.0% | 17.0% | 15.9% | 17.1% | 16.3% | 14.3% |
| ROE | 35.4% | 37.2% | 35.4% | 46.5% | 49.8% | 33.4% |
| Shares Outstanding | 56M | 56M | 57M | 58M | 59M | 60M |
LINCOLN ELECTRIC HOLDINGS INC passes 7 of 9 quality checks, indicating strong fundamentals.
LINCOLN ELECTRIC HOLDINGS INC trades at 28.1x trailing earnings, compared to its 15-year median P/E of 22.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 26.9x vs a median of 21.8x. The company's 5-year average ROIC is 20.9% with a gross margin of 35.0%. Total shareholder yield (dividends + buybacks) is 3.5%. At current prices, the estimated annualized return to fair value is +15.2%.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a current P/E ratio of 28.1, compared to its historical median P/E of 22.6. The stock is currently considered Expensive based on its historical valuation range.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a 5-year average return on invested capital (ROIC) of 20.9%. This indicates strong capital allocation and a potential competitive advantage.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a market capitalization of $14.6B. It is classified as a large-cap stock.
Yes, LINCOLN ELECTRIC HOLDINGS INC (LECO) pays a dividend with a trailing twelve-month yield of 1.15%. The company also returns capital through share buybacks, with a buyback yield of 2.31%.
Based on historical P/E analysis, LINCOLN ELECTRIC HOLDINGS INC (LECO) appears expensive. The current P/E of 28.1 is 24% above its historical median of 22.6. The estimated fair value CAGR (P/E method) is 16.1%.
LINCOLN ELECTRIC HOLDINGS INC (LECO) operates in the Metalworkg Machinery & Equipment industry, within the Industrials sector.
LINCOLN ELECTRIC HOLDINGS INC (LECO) reported annual revenue of $4.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a net profit margin of 12.3%. This is a healthy margin.
LINCOLN ELECTRIC HOLDINGS INC (LECO) generated $534 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a debt-to-equity ratio of 1.60. This indicates higher leverage, which may increase financial risk.
LINCOLN ELECTRIC HOLDINGS INC (LECO) reported earnings per share (EPS) of $9.32 in its most recent fiscal year.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a return on equity (ROE) of 37.2%. This indicates the company generates strong returns for shareholders.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a 5-year average gross margin of 35.0%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for LINCOLN ELECTRIC HOLDINGS INC (LECO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LINCOLN ELECTRIC HOLDINGS INC (LECO) has a book value per share of $26.32, based on its most recent annual SEC filing.