Lincoln Electric Holdings, Inc. (LECO) Company Bio
Lincoln Electric Holdings designs, develops and manufactures arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment and is also in the brazing and soldering alloys market. The company was founded in 1895 and is based in Cleveland, Ohio.
LECO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lincoln Electric Holdings Inc. To summarize, we found that Lincoln Electric Holdings Inc ranked in the 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Lincoln Electric Holdings Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.44 years, is -0.01% -- higher than merely 23.48% of stocks in our DCF forecasting set.
LECO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 33.89% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Lincoln Electric Holdings Inc has a reliance on debt greater than only 22.95% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ADP, MOG.A, ROK, HEI, and IEX can be thought of as valuation peers to LECO, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
It is my pleasure to introduce your host, Amanda Butler, Vice President of Investor Relations and Communications. Joining me on the call today is Chris Mapes, Lincoln's, Chairman, President and Chief Executive Officer, as well as Gabe Bruno, our Chief Financial Officer.
Lincoln Electric Holdings (NASDAQ: LECO) saw a drop in both earnings and sales after Q2. Earnings dropped to $55.55 million, a 86.22% decrease from the previous quarter. Sales fell to $590.73 million, down 15.85% from the previous quarter. In Q1, Lincoln Electric Holdings earned $403.19 million and total sales reached $702.00 million.What Is ROCE? Changes in earnings and sales indicate shifts in Lincoln Electric Holdings's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, Lincoln Electric Holdings posted an ROCE of 0.72%.View more earnings on LECOIt is important to keep in mind ROCE...