Lincoln Electric Stock Analysis, Valuation (NASDAQ:LECO)

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$92.5 $0.87 (0.93%) LECO stock closing price Sep 21, 2017 (Closing)
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Lincoln Electric
Updated on : Sep 21, 2017
previous close
LECO 92.5 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machine-Tools and related products
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4%
Operating Profit
Operating Margin:
14.3%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$75.4M
Net Income:
$61.4M
Dividend Yield
LECO dividend yield:
1.48%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LECO PS :
2.6
Industry PS :
1.4
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.9%
Return on Equity:
29.6%
Free Cash Flow Margin:
9.6%
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Lincoln Electric Stock Analysis

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View Lincoln Electric stock analysis video. This is our analyst opinion covering the buy and sell arguments for LECO stock.

Lincoln Electric Holdings, Inc. Stock Rating 3.7/5

Our Lincoln Electric stock opinion is based on fundamentals of the company. This Lincoln Electric stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy LECO stock?

  • Lincoln Electric's average operating margin of 14.3% was exceptional.
  • LTM Net margins were good at 9.9% for Lincoln Electric.
  • Lincoln Electric has an attractive ROIC (Return on Invested Capital) of 19.9%
  • The LTM ROE of 29.6% for Lincoln Electric is attractive.
  • The company has a healthy free cash flow margin of 9.6%.

Should you sell LECO stock?

  • Revenue declined at a CAGR of -4% over the last 5 years.
  • The company is trading at a price to sales multiple of 2.6, which is higher in comparison to the Machine-Tools and related products industry average of 1.4, making LECO stock expensive.

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