Lincoln Electric Holdings

LECO

Manufacturing - Tools & Accessories · Industrials

Price

$281.82

+4.94 (+1.78%)

Market Cap

$15.36B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Strong

Stability

Strong

Valuation

Strong

Dividends

Mixed

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Share count falling — buybacks

−7.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 60.1M (2021) → 55.9M (2025)

Winston Score History

The full picture

Lincoln Electric makes welding machines, welding wire, electrodes, and other equipment used to join metal together. Its customers include manufacturers in industries like automotive, construction, shipbuilding, and energy. The company is one of the largest welding equipment makers in the world and has been in business for over 125 years.

Lincoln Electric earns money by selling welding hardware, consumables like wire and electrodes, and automation systems to industrial customers. It operates globally, with significant sales in North America, Europe, and Asia, and generates roughly $3–4 billion in annual revenue. Its competitive edge comes from strong brand recognition, a wide product portfolio, and deep customer relationships built over decades. The main growth driver is industrial automation, as manufacturers increasingly use robotic welding systems to improve efficiency, though a slowdown in manufacturing activity or capital spending cuts by industrial customers remains a key risk to watch.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+12.4% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$86M/ year

→ Flat (+5% vs prior year)

2.0% of revenue

Below sector average (4%)

Steady R&D investment year-over-year

Insider Activity

1.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$242M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Lincoln Electric Holdings is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

36.8%

Modest — 36.8% gross margin

Profit after running costs

Operating Margin

18.4%

Healthy — 18.4% operating margin

Return on the money invested

ROCE

29.1%

Exceptional — 29.1% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+9.2%

Steady sales growth (+9.2% YoY)

Profit growth

EPS YoY

+12.7%

Earnings growing (+12.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

120%

Turns 120% of profit into real cash

Spare cash per sale

FCF Margin

11.5%

Modest free cash flow (11.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.74

Moderate — manageable debt (0.74)

Covers its interest

Interest Cover

13.65x

Comfortably covers interest (13.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

27.9x

Growth-priced — P/E 27.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+7.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (27.9 → 20.5)

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Dividends

Dividend

Dividend Yield

1.12%

Small dividend — 1.12% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+5.3%

Dividend growing modestly (5.3% YoY)

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