Lincoln Electric Holdings, Inc. (LECO) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Manufacturing - Tools & Accessories
EV/EBITDA
↑
19.76
↑+22% vs avg
5yr avg: 16.17
30Y Low5.3·High20.7
P/FCF
↓
28.25
+14% vs avg
5yr avg: 24.84
30Y Low9.7·High60.9
P/B Ratio
↓
10.46
+17% vs avg
5yr avg: 8.95
30Y Low1.9·High9.7
ROE
↑
37.2%
-8% vs avg
5yr avg: 40.5%
30Y Low5%·High50%
Debt/EBITDA
↑
1.59
↓-3% vs avg
5yr avg: 1.63
30Y Low0.0·High2.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LECO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lincoln Electric Holdings, Inc. trades at 29.5x earnings, 23% above its 5-year average of 24.0x, sitting at the 83rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 15%. On a free-cash-flow basis, the stock trades at 28.2x P/FCF, 14% above the 5-year average of 24.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.1B | $13.4B | $10.7B | $12.7B | $8.5B | $8.4B | $7.0B | $6.1B | $5.2B | $6.1B | $5.2B |
| Enterprise Value | $16.1B | $14.4B | $11.7B | $13.4B | $9.5B | $9.0B | $7.5B | $6.7B | $4.8B | $5.8B | $4.8B |
| P/E Ratio → | 29.53 | 25.71 | 23.00 | 23.21 | 17.97 | 30.32 | 33.99 | 20.67 | 18.04 | 24.68 | 26.35 |
| P/S Ratio | 3.57 | 3.16 | 2.67 | 3.02 | 2.26 | 2.59 | 2.64 | 2.02 | 1.71 | 2.33 | 2.30 |
| P/B Ratio | 10.46 | 9.11 | 8.08 | 9.67 | 8.21 | 9.70 | 8.86 | 7.39 | 5.83 | 6.54 | 7.33 |
| P/FCF | 28.25 | 25.07 | 22.23 | 21.96 | 27.25 | 27.69 | 23.97 | 18.17 | 20.08 | 22.34 | 20.61 |
| P/OCF | 22.82 | 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
LECO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lincoln Electric Holdings, Inc.'s enterprise value stands at 19.8x EBITDA, 22% above its 5-year average of 16.2x. The Industrials sector median is 13.9x, placing the stock at a 43% premium on an enterprise-value basis.
| 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 | 19.76 | 17.67 | 16.09 | 16.69 | 13.82 | 16.59 | 20.71 | 14.72 | 10.76 | 12.96 | 13.72 |
| EV / EBIT | 22.48 | 20.11 | 16.37 | 19.10 | 15.14 | 15.15 | 22.77 | 17.28 | 12.02 | 16.58 | 15.20 |
| EV / FCF | — | 26.91 | 24.17 | 23.29 | 30.63 | 29.76 | 25.71 | 19.97 | 18.69 | 21.15 | 19.12 |
LECO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lincoln Electric Holdings, Inc. earns an operating margin of 16.9%, above the Industrials sector average of 4.3%. Return on equity of 37.2% is exceptionally high — well above the sector median of 8.2%. ROIC of 22.7% represents excellent returns on invested capital versus a sector median of 6.1%.
Margins
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% |
Return on Capital
| 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% |
LECO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lincoln Electric Holdings, Inc. carries a Debt/EBITDA ratio of 1.6x, which is manageable (51% below the sector average of 3.2x). Net debt stands at $985M ($1.3B total debt minus $309M cash). Interest coverage of 11.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | 11.69 | 11.69 | 16.65 | 15.84 | 21.36 | 26.74 | 15.01 | 16.46 | 22.83 | 14.39 | 16.71 |
LECO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.82x means Lincoln Electric Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.16x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 2.24x to 1.82x over the past 3 years.
| 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 |
LECO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lincoln Electric Holdings, Inc. returns 3.3% to shareholders annually — split between a 1.1% dividend yield and 2.2% buyback yield. The payout ratio of 32.3% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 3.9% | 4.3% | 4.3% | 5.6% | 3.3% | 2.9% | 4.8% | 5.5% | 4.1% | 3.8% |
| FCF Yield | 3.5% | 4.0% | 4.5% | 4.6% | 3.7% | 3.6% | 4.2% | 5.5% | 5.0% | 4.5% | 4.9% |
| Buyback Yield | 2.2% | 2.5% | 2.5% | 1.6% | 2.1% | 2.0% | 1.6% | 4.8% | 3.9% | 0.7% | 6.5% |
| Total Shareholder Yield | 3.3% | 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 |
Peer Comparison
Compare LECO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LECOYou | $15B | 29.5 | 19.8 | 28.2 | 36.3% | 16.9% | 37.2% | 22.7% | 1.6 |
 ITW | $76B | 25.2 | 18.3 | 28.1 | 44.1% | 26.3% | 93.7% | 29.0% | 1.9 |
 IR | $31B | 53.7 | 17.7 | 25.0 | 38.5% | 18.5% | 5.7% | 7.8% | 2.5 |
 SWK | $13B | 32.7 | 12.4 | 19.6 | 29.9% | 7.6% | 4.5% | 5.8% | 3.8 |
 PH | $120B | 35.2 | 26.1 | 36.0 | 36.9% | 20.5% | 27.4% | 13.4% | 1.9 |
 EMR | $84B | 37.3 | 19.1 | 31.6 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 ESAB | $6B | 28.5 | 13.4 | 30.3 | 35.5% | 17.3% | 11.3% | 11.9% | 2.5 |
 GTLS | $10B | 630.3 | 14.4 | 49.1 | 29.2% | 15.2% | 1.3% | 7.4% | 4.0 |
 HLIO | $3B | 62.4 | 23.5 | 28.9 | 32.3% | 7.9% | 5.4% | 4.4% | 0.9 |
 NNBR | $147M | -2.6 | 19.5 | 20.4 | 5.7% | -4.3% | -30.8% | -4.5% | 11.9 |
 NUE | $56B | 32.4 | 14.6 | — | 11.9% | 8.2% | 8.0% | 7.7% | 1.7 |
| Industrials Median | — | 25.6 | 13.9 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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LECO — Frequently Asked Questions
Quick answers to the most common questions about buying LECO stock.
What is Lincoln Electric Holdings, Inc.'s P/E ratio?
Lincoln Electric Holdings, Inc.'s current P/E ratio is 29.5x. The historical average is 20.3x. This places it at the 83th percentile of its historical range.
What is Lincoln Electric Holdings, Inc.'s EV/EBITDA?
Lincoln Electric Holdings, Inc.'s current EV/EBITDA is 19.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
What is Lincoln Electric Holdings, Inc.'s ROE?
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%.
Is LECO stock overvalued?
Based on historical data, Lincoln Electric Holdings, Inc. is trading at a P/E of 29.5x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lincoln Electric Holdings, Inc.'s dividend yield?
Lincoln Electric Holdings, Inc.'s current dividend yield is 1.09% with a payout ratio of 32.3%.
What are Lincoln Electric Holdings, Inc.'s profit margins?
Lincoln Electric Holdings, Inc. has 36.3% gross margin and 16.9% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Lincoln Electric Holdings, Inc. have?
Lincoln Electric Holdings, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.