📊 LECO Key Takeaways
Is LECO a Good Investment? Thesis Analysis
Lincoln Electric demonstrates exceptional operational efficiency with 17% operating margins, outstanding cash generation ($534M FCF), and superior returns on capital (35.4% ROE). Strong liquidity and manageable leverage position the company well, though the stagnation in net income despite 5.6% revenue growth indicates margin compression pressures that warrant monitoring.
Why Buy LECO? Key Strengths
- Exceptional profitability: 17.0% operating margin and 12.3% net margin indicate strong pricing power and operational efficiency
- Outstanding cash generation: $534M free cash flow with 12.6% FCF margin provides capital for debt reduction and shareholder returns
- Superior returns on capital: 35.4% ROE and 13.8% ROA demonstrate highly efficient deployment of shareholder capital
- Strong financial position: 0.78x debt-to-equity, 13.6x interest coverage, and 1.82x current ratio indicate healthy balance sheet and liquidity
- EPS growth outpacing net income (14.4% vs 0%) reflects disciplined share buyback program
LECO Investment Risks to Consider
- Net income flat YoY (0% growth) despite 5.6% revenue growth signals margin compression under operational or cost pressures
- Cyclical industry exposure as metalworking machinery supplier vulnerable to economic downturn and capex cuts from customers
- Elevated debt at $1.2B requires ongoing cash flow generation to service; refinancing risk in rising rate environment
- Capital-intensive operations with $127M annual capex reducing FCF conversion efficiency
Key Metrics to Watch
- Operating margin trend - continuation or stabilization of compression
- Organic revenue growth rate - whether 5.6% can be sustained or accelerated
- Free cash flow conversion and capital allocation priorities
- Debt reduction pace and leverage trajectory
- Working capital management and accounts receivable turnover
LECO Financial Metrics
💡 AI Analyst Insight
LINCOLN ELECTRIC HOLDINGS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LECO Profitability Ratios
LECO vs Industrial Sector
How LINCOLN ELECTRIC HOLDINGS INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LECO Overvalued or Undervalued?
Based on fundamental analysis, LINCOLN ELECTRIC HOLDINGS INC has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LECO Balance Sheet & Liquidity
LECO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: LINCOLN ELECTRIC HOLDINGS INC's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.37 reflects profitable operations.
LECO Growth Metrics (YoY)
LECO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $983.8M | $100.8M | $1.77 |
| Q2 2025 | $1.0B | $101.7M | $1.77 |
| Q1 2025 | $981.2M | $118.5M | $2.10 |
| Q3 2024 | $983.8M | $100.8M | $1.77 |
| Q2 2024 | $1.0B | $101.7M | $1.77 |
| Q1 2024 | $981.2M | $121.9M | $2.09 |
| Q3 2023 | $935.2M | $109.2M | $1.87 |
| Q2 2023 | $969.6M | $127.8M | $2.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LECO Capital Allocation
LECO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for LINCOLN ELECTRIC HOLDINGS INC (CIK: 0000059527)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | DEF 14A | i26041_leco-def14a.htm | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040320.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040318.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040316.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040314.xml | View → |
❓ Frequently Asked Questions about LECO
What is the AI rating for LECO?
LINCOLN ELECTRIC HOLDINGS INC (LECO) has an AI rating of BUY with 76% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LECO's key strengths?
Claude: Exceptional profitability: 17.0% operating margin and 12.3% net margin indicate strong pricing power and operational efficiency. Outstanding cash generation: $534M free cash flow with 12.6% FCF margin provides capital for debt reduction and shareholder returns.
What are the risks of investing in LECO?
Claude: Net income flat YoY (0% growth) despite 5.6% revenue growth signals margin compression under operational or cost pressures. Cyclical industry exposure as metalworking machinery supplier vulnerable to economic downturn and capex cuts from customers.
What is LECO's revenue and growth?
LINCOLN ELECTRIC HOLDINGS INC reported revenue of $4.2B.
Does LECO pay dividends?
LINCOLN ELECTRIC HOLDINGS INC pays dividends, with $168.2M distributed to shareholders in the trailing twelve months.
Where can I find LECO SEC filings?
Official SEC filings for LINCOLN ELECTRIC HOLDINGS INC (CIK: 0000059527) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LECO's EPS?
LINCOLN ELECTRIC HOLDINGS INC has a diluted EPS of $9.32.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LECO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LINCOLN ELECTRIC HOLDINGS INC has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LECO stock overvalued or undervalued?
Valuation metrics for LECO: ROE of 35.4% (sector avg: 15%), net margin of 12.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy LECO stock in 2026?
Our dual AI analysis gives LINCOLN ELECTRIC HOLDINGS INC a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LECO's free cash flow?
LINCOLN ELECTRIC HOLDINGS INC's operating cash flow is $661.2M, with capital expenditures of $127.0M. FCF margin is 12.6%.
How does LECO compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 12.3% (avg: 10%), ROE 35.4% (avg: 15%), current ratio 1.82 (avg: 1.8).