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Lincoln Electric Holdings, Inc. LECO

IndustrialsManufacturing - Tools & AccessoriesNASDAQ📅 Scored March 7, 2026
Price at analysis: $255.12
Crucible Score
58.5
C+
Quality × Value Composite
KQI — Quality
69.9
B
Fundamental Quality Index
KVI — Value
44.5
D
Valuation Attractiveness Index
Crucible Verdict — LECO

Lincoln Electric Holdings delivers solid operational quality with an 80 financial quality score and 77% earnings beat rate, but LECO trades at a 7% discount to fair value due to weak diversification metrics and insider selling pressure. The quality-value disconnect suggests the market is pricing in execution risks that management's eight-year track record doesn't fully support.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
80.2
Growth Profile
59.6
Moat Durability
62.8
Management Effectiveness⚠
76.3
Diversification & Resilience⚠
56.0
Market Position
72.0
Weakest dimension: Diversification & Resilience (56.0)

◆ KVI Value Dimensions

DCF Margin of Safety
59.4
FCF Yield & Cash Returns
45.2
Relative Valuation
65.7
Growth-Adjusted Value
10.6
Historical Valuation
9.1
Macro Context
57.1

◆ DCF Valuation Scenarios

Bear Case
$187.42
Base Case
$272.58
Bull Case
$378.91
Price at Analysis
$255.12
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$187.422.5%15.5%11.2%
🟢 Base$272.584.0%17.5%10.4%
🟢 Bull$378.915.5%19.0%9.8%
Key Assumptions: WACC derived using CAPM with 4.39% risk-free rate, 1.26 beta, and 5.25% ERP (base ~11.0%), adjusted +/-70bps across scenarios. Revenue growth anchored to 5-year CAGR of ~5.5% with LECO's cyclical industrial exposure; operating margins range from 15.5% (bear, reflecting input cost pressure) to 19% (bull, reflecting automation/mix improvement) versus trailing ~17%. Capex intensity held near historical 3% of revenue; tax rate normalized at 21%.

◆ Financial Snapshot

Profitability

Gross Margin36.3%
Operating Margin17.2%
Net Margin12.3%
ROIC19.1%
ROE33.9%

Balance Sheet

Balance SheetCR: 1.82
Cash ConversionFCF/EPS: 1.03x
Capital IntensityCapex/Rev: 3.0%
Altman Z-Score5.79 (Safe)
Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR7.0% CAGR
Earnings CAGR17.1% CAGR
Growth ConsistencyCV: 1.37
Segment Breadth2/8 growing (25%)
Quarterly TrendExp↓
Earnings CredibilityConsistent Beater

◆ Revenue Breakdown — FY2025

By Segment

Americas Welding67.4%
International Welding22.7%
The Harris Products Group14.0%
Reportable Segment, Aggregation before Other Operating Segment-4.1%

By Geography

UNITED STATES62.2%
Non-US37.8%
Total Revenue
$4.2B
Fiscal Year 2025

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$284.55
Analysts Covering (Quarter)11
Avg Target (Last Year)$275.21
Analysts (Year)14

Leadership & Governance

CEOJohn Curran · 8 years
CEO Ownership2.4%
Insider ActivitySelling
Capital AllocationROIC 19.1% vs WACC 3.1%
Earnings Beat Rate77% (15/22)

◆ Company Profile

Lincoln Electric Holdings, Inc. , through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide.

CEO
Steven Hedlund
Employees
12000
Headquarters
Cleveland, OH, US
IPO Date
April 7, 1994
Exchange
NASDAQ

◆ Related Companies in Our Universe

Other Industrials companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+
MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny