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Lincoln Electric (LECO) Stock Analysis

This is a peer-relative look at Lincoln Electric (LECO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Lincoln Electric (LECO)
Profile ItemLECO
NameLincoln Electric Holdings, Inc.
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryMachinery
GICS Sub-IndustryIndustrial Machinery & Supplies & Components
Market Capitalization14.91 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateApril 7, 1994
Security TypeCommon Stock

Price Performance

Cumulative Growth

LECO
GSPC
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Lincoln Electric (LECO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Lincoln Electric (LECO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Lincoln Electric (LECO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Total Return (1Y)27.30%6.84%
Total Return (3Y, Annualized)17.31%17.66%
Total Return (5Y, Annualized)16.33%9.09%

Risk Profile

Drawdown History

LECO
GSPC
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Lincoln Electric (LECO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Lincoln Electric (LECO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Volatility (1Y, Annualized)31.13%44.38%
Beta (5Y)1.171.19
Max Drawdown (5Y)-34.29%-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. LECO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Sharpe Ratio (1Y)0.740.06
Sortino Ratio (1Y)1.110.09

Profitability

ROE (TTM)

Lincoln Electric (LECO) posts ROE of 38.75%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

LECO

Capital Goods industry group

38.75%

Group distribution
Max
40.55%
LECO
38.75%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
Largest peers
GEV
93.04%
CAT
56.14%
GE
50.17%
LECO
38.75%
DE
18.24%
RTX
12.85%
BA
--
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Where Lincoln Electric (LECO) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Lincoln Electric (LECO) keeps 12.40% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

LECO

Capital Goods industry group

12.40%

Group distribution
Max
27.47%
LECO
12.40%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
Largest peers
GEV
23.54%
GE
17.31%
CAT
15.21%
LECO
12.40%
DE
10.17%
RTX
8.75%
BA
8.07%
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Where Lincoln Electric (LECO) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Lincoln Electric (LECO) turns 18.29% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

LECO

Capital Goods industry group

18.29%

Group distribution
Max
36.60%
Q3
18.33%
LECO
18.29%
Median
11.12%
Q1
5.14%
Min
-12.63%
Largest peers
CAT
20.19%
GE
18.49%
LECO
18.29%
RTX
15.54%
DE
13.37%
GEV
12.77%
BA
0.30%
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Where Lincoln Electric (LECO) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
ROE (TTM)38.75%12.12%
ROA (TTM)13.32%5.29%
Net Margin (TTM)12.40%6.30%
Operating Margin (TTM)18.29%11.12%
Gross Margin (TTM)35.54%29.63%

Growth

Revenue Growth

Lincoln Electric (LECO) grew revenue 5.60%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Lincoln Electric (LECO): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Lincoln Electric (LECO) grew earnings per share 14.36%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Lincoln Electric (LECO): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Revenue Growth (YoY)5.60%8.11%
Revenue Growth (3Y CAGR)4.02%6.45%
EPS Growth (YoY)14.36%5.45%
EPS Growth (3Y CAGR)5.05%7.15%

Financial Strength

Current Ratio (MRQ)

Lincoln Electric (LECO) has current ratio of 1.91, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

LECO

Capital Goods industry group

1.91

Group distribution
Max
5.22
Q3
2.95
Median
2.08
LECO
1.91
Q1
1.43
Min
0.36
Largest peers
DE
2.13
LECO
1.91
CAT
1.42
BA
1.13
RTX
1.05
GE
0.98
GEV
0.83
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Where Lincoln Electric (LECO) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Lincoln Electric (LECO) has debt-to-equity ratio of 0.78, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

LECO

Capital Goods industry group

0.78

Group distribution
Max
2.33
Q3
1.12
LECO
0.78
Median
0.60
Q1
0.29
Min
0.00
Largest peers
BA
7.39
DE
2.30
CAT
2.10
GE
1.16
LECO
0.78
RTX
0.55
GEV
0.30
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Where Lincoln Electric (LECO) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Current Ratio (MRQ)1.912.08
Debt / Equity (MRQ)0.780.60
Net Debt / EBITDA1.001.78

Dividends

Dividend Yield (TTM)

Lincoln Electric (LECO) has dividend yield of 1.16%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

LECO

Capital Goods industry group

1.16%

Group distribution
Max
2.66%
LECO
1.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.47%
LECO
1.16%
CAT
1.13%
DE
0.98%
GE
0.56%
GEV
0.26%
BA
0.00%
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Where Lincoln Electric (LECO) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Lincoln Electric (LECO) has payout ratio of 30.30%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

LECO

Capital Goods industry group

30.30%

Group distribution
Max
67.39%
LECO
30.30%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
Largest peers
RTX
45.85%
DE
36.02%
LECO
30.30%
CAT
24.18%
GE
20.23%
GEV
4.59%
BA
0.00%
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Where Lincoln Electric (LECO) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
Dividend Yield (TTM)1.16%0.24%
Dividend Payout Ratio (TTM)30.30%6.86%

Valuation

P/E Ratio (TTM)

Lincoln Electric (LECO) trades at P/E ratio of 26.40, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

LECO

Capital Goods industry group

26.40

Group distribution
Max
59.38
Q3
35.92
LECO
26.40
Median
25.41
Q1
19.47
Min
3.03
Largest peers
DE
37.33
GE
36.94
RTX
30.82
LECO
26.40
CAT
21.92
GEV
20.32
BA
17.89
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Where Lincoln Electric (LECO) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Lincoln Electric (LECO) trades at 3.21 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

LECO

Capital Goods industry group

3.21

Group distribution
Max
7.54
Q3
3.76
LECO
3.21
Median
2.15
Q1
1.03
Min
0.03
Largest peers
GE
6.38
GEV
4.65
DE
3.78
CAT
3.29
LECO
3.21
RTX
2.66
BA
1.45
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Where Lincoln Electric (LECO) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Lincoln Electric (LECO) trades at 9.59 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

LECO

Capital Goods industry group

9.59

Group distribution
Max
9.66
LECO
9.59
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
Largest peers
BA
20.99
GE
19.06
GEV
18.00
CAT
11.90
LECO
9.59
DE
6.47
RTX
3.69
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Where Lincoln Electric (LECO) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Lincoln Electric (LECO) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: LECOIndustry group median
P/E Ratio (TTM)26.4025.41
P/S Ratio (TTM)3.212.15
P/B Ratio (MRQ)9.593.12
Free Cash Flow Yield (TTM)2.68%3.03%