Latest Ratios: P/E Ratio 28.6x · EV/EBITDA 19.1x · ROE 37.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $14.6B | $13.4B | $10.7B | $12.7B | $8.5B | $8.4B | $7.0B | $6.1B | $5.2B | $6.1B | $5.2B |
| Enterprise Value | $15.6B | $14.4B | $11.7B | $13.4B | $9.5B | $9.0B | $7.5B | $6.7B | $4.8B | $5.8B | $4.8B |
| P/E Ratio → | 28.58 | 25.71 | 23.00 | 23.21 | 17.97 | 30.32 | 33.99 | 20.67 | 18.04 | 24.68 | 26.35 |
| P/S Ratio | 3.45 | 3.16 | 2.67 | 3.02 | 2.26 | 2.59 | 2.64 | 2.02 | 1.71 | 2.33 | 2.30 |
| P/B Ratio | 10.13 | 9.11 | 8.08 | 9.67 | 8.21 | 9.70 | 8.86 | 7.39 | 5.83 | 6.54 | 7.33 |
| P/FCF | 27.32 | 25.07 | 22.23 | 21.96 | 27.25 | 27.69 | 23.97 | 18.17 | 20.08 | 22.34 | 20.61 |
| P/OCF | 22.07 | 20.25 | 17.90 | 18.97 | 22.14 | 22.95 | 19.93 | 15.03 | 15.73 | 18.23 | 17.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.40 | 2.91 | 3.20 | 2.54 | 2.78 | 2.83 | 2.22 | 1.59 | 2.20 | 2.13 |
| EV / EBITDA | 19.15 | 17.67 | 16.09 | 16.69 | 13.82 | 16.59 | 20.71 | 14.72 | 10.76 | 12.96 | 13.72 |
| EV / EBIT | 21.79 | 19.51 | 16.37 | 19.10 | 15.14 | 15.15 | 22.77 | 17.28 | 12.02 | 16.58 | 15.20 |
| EV / FCF | — | 26.90 | 24.17 | 23.29 | 30.63 | 29.76 | 25.71 | 19.97 | 18.69 | 21.15 | 19.12 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.3% | 36.3% | 36.9% | 35.3% | 34.1% | 33.0% | 32.8% | 33.5% | 34.0% | 33.5% | 34.6% |
| Operating Margin | 16.9% | 16.9% | 15.9% | 17.1% | 16.3% | 14.3% | 10.6% | 12.4% | 12.4% | 14.4% | 12.7% |
| Net Profit Margin | 12.3% | 12.3% | 11.6% | 13.0% | 12.6% | 8.6% | 7.8% | 9.8% | 9.5% | 9.4% | 8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.2% | 37.2% | 35.4% | 46.5% | 49.8% | 33.4% | 25.6% | 34.3% | 31.5% | 30.1% | 24.1% |
| ROA | 14.3% | 14.3% | 13.5% | 16.6% | 16.4% | 11.3% | 8.8% | 12.4% | 12.1% | 11.4% | 10.6% |
| ROIC | 22.7% | 22.7% | 22.0% | 25.9% | 25.7% | 24.9% | 15.6% | 28.5% | 49.5% | 60.0% | 44.6% |
| ROCE | 26.2% | 26.2% | 24.2% | 29.0% | 29.4% | 25.6% | 15.8% | 20.5% | 20.4% | 22.0% | 19.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.88 | 0.88 | 0.99 | 0.89 | 1.21 | 0.95 | 0.97 | 0.98 | 0.00 | 0.00 | 0.00 |
| Debt / EBITDA | 1.59 | 1.59 | 1.82 | 1.44 | 1.81 | 1.51 | 2.11 | 1.77 | 0.00 | 0.00 | 0.01 |
| Net Debt / Equity | — | 0.67 | 0.71 | 0.59 | 1.02 | 0.72 | 0.64 | 0.73 | -0.40 | -0.35 | -0.53 |
| Net Debt / EBITDA | 1.21 | 1.21 | 1.30 | 0.95 | 1.53 | 1.15 | 1.40 | 1.33 | -0.80 | -0.73 | -1.07 |
| Debt / FCF | — | 1.84 | 1.95 | 1.33 | 3.38 | 2.07 | 1.73 | 1.80 | -1.39 | -1.19 | -1.49 |
| Interest Coverage | 12.05 | 12.05 | 16.65 | 15.84 | 21.36 | 26.74 | 15.01 | 16.46 | 22.83 | 14.39 | 16.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.82 | 1.82 | 1.87 | 2.24 | 1.83 | 1.71 | 2.02 | 1.91 | 2.30 | 2.60 | 2.69 |
| Quick Ratio | 1.16 | 1.16 | 1.25 | 1.50 | 1.05 | 0.99 | 1.33 | 1.21 | 1.63 | 1.94 | 2.03 |
| Cash Ratio | 0.32 | 0.32 | 0.43 | 0.52 | 0.23 | 0.26 | 0.47 | 0.35 | 0.67 | 0.96 | 0.98 |
| Asset Turnover | — | 1.12 | 1.14 | 1.24 | 1.18 | 1.25 | 1.15 | 1.27 | 1.29 | 1.09 | 1.17 |
| Inventory Turnover | 4.26 | 4.26 | 4.65 | 4.82 | 3.73 | 4.01 | 4.68 | 5.07 | 5.53 | 5.00 | 5.83 |
| Days Sales Outstanding | — | 46.48 | 43.89 | 50.56 | 55.97 | 51.28 | 54.38 | 45.53 | 47.83 | 54.97 | 43.97 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.3% | 1.5% | 1.2% | 1.5% | 1.5% | 1.7% | 1.9% | 2.0% | 1.5% | 1.7% |
| Payout Ratio | 32.3% | 32.3% | 34.8% | 27.1% | 27.7% | 44.1% | 57.3% | 40.2% | 35.6% | 37.4% | 44.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.9% | 4.3% | 4.3% | 5.6% | 3.3% | 2.9% | 4.8% | 5.5% | 4.1% | 3.8% |
| FCF Yield | 3.7% | 4.0% | 4.5% | 4.6% | 3.7% | 3.6% | 4.2% | 5.5% | 5.0% | 4.5% | 4.9% |
| Buyback Yield | 2.3% | 2.5% | 2.5% | 1.6% | 2.1% | 2.0% | 1.6% | 4.8% | 3.9% | 0.7% | 6.5% |
| Total Shareholder Yield | 3.4% | 3.8% | 4.0% | 2.7% | 3.7% | 3.4% | 3.3% | 6.8% | 5.9% | 2.2% | 8.2% |
| Shares Outstanding | — | $56M | $57M | $58M | $59M | $60M | $60M | $63M | $66M | $67M | $68M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LECO stock.
Lincoln Electric Holdings, Inc.'s current P/E ratio is 28.6x. The historical average is 20.3x. This places it at the 83th percentile of its historical range.
Lincoln Electric Holdings, Inc.'s current EV/EBITDA is 19.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
Lincoln Electric Holdings, Inc.'s return on equity (ROE) is 37.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.7%.
Based on historical data, Lincoln Electric Holdings, Inc. is trading at a P/E of 28.6x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lincoln Electric Holdings, Inc.'s current dividend yield is 1.13% with a payout ratio of 32.3%.
Lincoln Electric Holdings, Inc. has 36.3% gross margin and 16.9% operating margin. Operating margin between 10-20% is typical for established companies.
Lincoln Electric Holdings, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Raw material price volatility
Metrics are mathematically derived from official filings.
Margin Expansion Driven by Mix and Leverage
Operating margin reached 18.4% in Q2 2026, the highest in the reported period, up from 16.6% a year earlier, reflecting pricing discipline and mix shift toward automation, as per financial statements.
The sequential improvement in operating margin from 17.0% in Q1 2026 to 18.4% in Q2 2026, alongside a gross margin expansion to 36.8%, suggests that the company is successfully offsetting raw material cost pressures through pricing and product mix. The net margin of 13.0% in Q2 2026 is also near the top of the ten-quarter range, indicating that operating leverage is translating effectively to the bottom line. However, the gross margin has historically hovered around 36-37%, implying a structural ceiling that may limit further expansion unless the automation mix accelerates.
ROIC Recovery Signals Compounding Efficiency
ROIC improved to 6.5% in Q2 2026 from 5.8% a year earlier, while ROE reached 10.3%, indicating that capital efficiency is recovering after a cyclical trough, based on reported quarterly data.
The upward trend in ROIC from 4.9% in Q3 2024 to 6.5% in Q2 2026 suggests that the company is generating higher returns on its invested capital, driven by margin expansion and improved asset turnover. ROE has also strengthened, reaching 10.3% in Q2 2026, though it remains below the levels seen in mid-2025, indicating that the recovery is still in progress. The gap between ROIC and ROE reflects the modest leverage, which appears to be amplifying returns without excessive risk, as D/E declined to 0.74.
Working Capital Efficiency Shows Cyclical Improvement
Cash conversion cycle shortened to 73 days in Q2 2026 from 90 days in Q4 2024, driven by faster receivables collection and inventory management, according to the latest quarterly data.
The reduction in DSO from 54 days in Q1 2024 to 44 days in Q2 2026 indicates improved receivables collection, while DIO has remained relatively stable around 82-85 days, suggesting inventory management is holding steady. DPO has increased from 48 to 53 days over the same period, indicating that the company is taking longer to pay suppliers, which may reflect improved bargaining power or deliberate cash management. The overall CCC compression from 90 to 73 days is a positive sign of working capital efficiency, though it remains sensitive to cyclical swings in demand.
Deleveraging Path Enhances Financial Flexibility
Debt-to-equity fell to 0.74 in Q2 2026 from 0.98 in Q1 2026, while interest coverage improved to 18.2x, indicating a stronger balance sheet, as reported in the latest balance sheet data.
The significant reduction in total debt from $1.5B to $1.2B in a single quarter suggests aggressive debt repayment, which has lowered D/EBITDA from 6.82 to 4.60. Interest coverage of 18.2x is the highest in the reported period, providing ample cushion for debt service even if earnings were to decline. This deleveraging trend appears to be a deliberate strategy to enhance financial flexibility, which may support future capital deployment for acquisitions or shareholder returns.
Liquidity Buffer Strengthens Amid Growth
Current ratio improved to 1.98 in Q2 2026 from 1.68 a year earlier, with quick ratio at 1.20, indicating a solid liquidity position, based on the latest quarterly balance sheet data.
The improvement in the current ratio from 1.68 to 1.98 over the past year suggests that current assets are increasingly covering short-term obligations, providing a comfortable buffer against operational disruptions. The quick ratio of 1.20, while lower than the current ratio, still indicates that the company can meet near-term liabilities without relying on inventory sales. This liquidity strength, combined with cash of $242.4M, suggests that LECO is well-positioned to weather potential downturns or fund strategic initiatives.
P/E Misleads on Cyclical Earnings Power
The trailing P/E of 28.7 appears elevated, but it understates LECO's earnings power at the cycle peak; investors should consider normalized earnings or EV/EBITDA, which at 19.2x is more comparable to peers.
The P/E ratio is commonly misapplied to LECO because its earnings are highly cyclical, tied to industrial production and raw material costs. At the current point in the cycle, with record earnings, the trailing P/E may appear reasonable, but it does not account for the potential earnings decline in a downturn. A more appropriate metric is EV/EBITDA, which at 19.2x is in line with ITW's 19.8x and reflects the company's operating performance before the impact of depreciation and financing decisions. Additionally, investors should adjust for the variable bonus structure and LIFO effects, which can distort quarterly earnings comparisons.