Lincoln Electric Stock Analysis, Valuation (NASDAQ:LECO)

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$91.24 $2.17 (2.32%) LECO stock closing price Feb 16, 2018 (Closing)
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Lincoln Electric
Updated on : Feb 16, 2018
previous close
LECO 91.2 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machine-Tools and related products
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.1%
Operating Profit
Operating Margin:
16%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$93.7M
Net Income:
$106.1M
Dividend Yield
LECO dividend yield:
1.53%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LECO PS :
2.5
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
23.4%
Return on Equity:
34.2%
Free Cash Flow Margin:
12.5%
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Lincoln Electric Stock Analysis

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View the Lincoln Electric stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for LECO stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Lincoln Electric Holdings, Inc. Stock Rating 3.7/5

Amigobulls LECO stock analysis takes into account various financial ratios like relative valuation, Lincoln Electric revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Lincoln Electric dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Lincoln Electric valuation analysis. Lincoln Electric stock rating is our opinion about the business fundamentals of the company.

Should you buy LECO stock?

  • The TTM operating margin was good at 16% for Lincoln Electric.
  • Net margins came in at average 11.3% for Lincoln Electric over the last twelve months.
  • Lincoln Electric has an attractive ROIC (Return on Invested Capital) of 23.4%
  • Lincoln Electric has a good Return On Equity (ROE) of 34.2%.
  • The company has a good Free Cash Flow (FCF) margin of 12.5%.

Should you sell LECO stock?

  • Sales declined by -3.1% annually over the last 5 years.
  • The company is trading at a price to sales multiple of 2.5, which is higher in comparison to the Machine-Tools and related products industry average of 1.5, making LECO stock expensive.

Comments on this video and Lincoln Electric stock

Amigobulls Lincoln Electric stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of LECO stock. Company's fundamentals remain one of the key driver of LECO stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Lincoln Electric revenue growth and profit or net income are two main metrics which help in identifying whether LECO stock is overvalued or undervalued. Investors could make use of LECO technical analysis to check whether the fundamental story is reflected in the market sentiment.