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 41th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Lincoln Electric Holdings Inc ended up being:
The company's balance sheet shows it gets 85% of its capital from equity, and 15% of its capital from debt. Notably, its equity weight is greater than 74.1% of US equities in the Industrials sector yielding a positive free cash flow.
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 33.57% of tickers in our DCF set.
Lincoln Electric Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 15.93. This coverage rate is greater than that of 83.43% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AME, ATRO, CTAS, PCAR, and PKOH 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.
Lincoln Electric Holdings, Inc. (the “Company”) (LECO) announced today that George D. Blankenship, Executive Vice President, President Americas Welding segment is retiring effective May 31, 2020. Christopher L. Mapes, Chairman, President and Chief Executive Officer, will oversee the Americas Welding organization until an internal successor to Blankenship is named. Blankenship joined Lincoln Electric in 1985 as an engineering trainee and held various engineering and product development management positions until 2009, when he was promoted to Senior Vice President and President North America.