Latest news with #LincolnElectricHoldings
Yahoo
05-08-2025
- Business
- Yahoo
Lincoln Electric Holdings (LECO) Is Up 2.59% in One Week: What You Should Know
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Lincoln Electric Holdings (LECO), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Lincoln Electric Holdings currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market? Let's discuss some of the components of the Momentum Style Score for LECO that show why this manufacturer of specialized welding products and other equipment shows promise as a solid momentum pick. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For LECO, shares are up 2.59% over the past week while the Zacks Manufacturing - Tools & Related Products industry is up 2.9% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.49% compares favorably with the industry's 0.28% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Lincoln Electric Holdings have increased 28.81% over the past quarter, and have gained 21.3% in the last year. In comparison, the S&P 500 has only moved 11.66% and 15.86%, respectively. Investors should also take note of LECO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now LECO is averaging 347,084 shares for the last 20 days.. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with LECO. Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost LECO's consensus estimate, increasing from $9.05 to $9.17 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period. Bottom Line Taking into account all of these elements, it should come as no surprise that LECO is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Lincoln Electric Holdings on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
31-07-2025
- Business
- Business Wire
Lincoln Electric Reports Second Quarter 2025 Results
CLEVELAND--(BUSINESS WIRE)--Lincoln Electric Holdings, Inc. (the 'Company') (Nasdaq: LECO) today reported second quarter 2025 net income of $143.4 million, or diluted earnings per share (EPS) of $2.56, which includes special item after-tax net charges of $2.2 million, or $0.04 EPS. This compares with prior year period net income of $101.7 million, or $1.77 EPS, which included special item after-tax net charges of $32.6 million, or $0.57 EPS. Excluding special items, second quarter 2025 adjusted net income was $145.6 million, or $2.60 adjusted EPS. This compares with adjusted net income of $134.3 million, or $2.34 adjusted EPS, in the prior year period. 'I am pleased to report solid second quarter results, which demonstrate how we are effectively managing the business in a dynamic operating environment while positioning for long-term growth and margin expansion,' said Steven B. Hedlund, Chair & CEO. Share Second quarter 2025 sales increased 6.6% to $1,088.7 million reflecting a 2.9% increase in organic sales and 3.0% benefit from acquisitions. Operating income for the second quarter 2025 was $192.1 million, or 17.6% of sales. This compares with operating income of $148.8 million, or 14.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $195.1 million, or 17.9% of sales, as compared with $177.6 million, or 17.4% of sales, in the prior year period. 'I am pleased to report solid second quarter results, which demonstrate how we are effectively managing the business in a dynamic operating environment while positioning for long-term growth and margin expansion,' said Steven B. Hedlund, Chair, President and Chief Executive Officer. 'With the progression of the business, our operating agility and strong cash generation, we are well positioned to continue to create value for our shareholders through the cycle.' Six Months 2025 Summary Net income for the six months ended June 30, 2025 was $261.9 million, or $4.66 EPS, which includes special item after-tax net charges of $5.6 million, or $0.10 EPS. This compares with prior year period net income of $225.1 million, or $3.91 EPS, which included special item after-tax net charges of $37.8 million, or $0.66 EPS. Excluding special items, adjusted net income for the six months ended June 30, 2025 was $267.5 million, or $4.76 EPS. This compares with adjusted net income of $262.9 million, or $4.57 adjusted EPS, in the prior year period. Sales increased 4.5% to $2,093.1 million in the six months ended June 30, 2025 primarily reflecting a 0.8% increase in organic sales and 3.9% benefit from acquisitions. Operating income for the six months ended June 30, 2025 was $357.1 million, or 17.1% of sales. This compares with operating income of $313.9 million, or 15.7% of sales, in the prior year period. Excluding special items, adjusted operating income was $364.6 million, or 17.4% of sales, as compared with $349.0 million, or 17.4% of sales, in the prior year period. Other Matters The Company has entered into an agreement to acquire the remaining 65% of Alloy Steel Australia (Int) Pty Ltd. ('Alloy Steel'), for approximately $90 million, which is expected to close on August 1, 2025, subject to the satisfaction of customary closing conditions. This transaction will result in the full ownership of Alloy Steel following the Company's April 1, 2025, acquisition of a 35% ownership interest. Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector. Alloy Steel has annual revenues of approximately $50 million and their results will be reported in the International Welding segment. The acquisition is expected to be accretive to Company earnings, excluding transaction costs, at approximately $0.13 to $0.15 per diluted common share on an annual basis. Webcast Information A conference call to discuss second quarter 2025 financial results will be webcast live today, July 31, 2025, at 10:00 a.m., Eastern Time. Those interested in participating via webcast in listen-only mode can access the event here or on the Company's Investor Relations home page at For participants who would like to participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available via webcast on the Company's website. About Lincoln Electric Lincoln Electric is the world leader in the engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment, and has a leading global position in brazing and soldering alloys. Lincoln is recognized as the Welding Expert™ for its leading materials science, software development, automation engineering, and application expertise, which advance customers' fabrication capabilities to help them build a better world. Headquartered in Cleveland, Ohio, Lincoln operates 71 manufacturing and automation system integration locations across 20 countries and maintains a worldwide network of distributors and sales offices serving customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company's website at Non-GAAP Information Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share ('adjusted EPS'), Organic sales, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital ('adjusted ROIC') are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently. Forward-Looking Statements The Company's expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'believe,' 'forecast,' 'guidance' or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company's operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company's rationalization plans; the Company's ability to complete acquisitions, including the Company's ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law, including any changes from the new legislation implemented in the One Big Beautiful Bill Act; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, the ongoing geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional discussion, see 'Item 1A. Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025. Fav (Unfav) to Six Months Ended June 30, Prior Year 2025 % of Sales 2024 % of Sales $ % Net sales $ 2,093,061 100.0 % $ 2,002,880 100.0 % $ 90,181 4.5 % Cost of goods sold 1,322,066 63.2 % 1,250,668 62.4 % (71,398) (5.7) % Gross profit 770,995 36.8 % 752,212 37.6 % 18,783 2.5 % Selling, general & administrative expenses 407,526 19.5 % 407,232 20.3 % (294) (0.1) % Rationalization and asset impairment charges 6,407 0.3 % 31,095 1.6 % 24,688 79.4 % Operating income 357,062 17.1 % 313,885 15.7 % 43,177 13.8 % Interest expense, net 24,746 1.2 % 19,440 1.0 % (5,306) (27.3) % Other income 4,478 0.2 % 709 — 3,769 531.6 % Income before income taxes 336,794 16.1 % 295,154 14.7 % 41,640 14.1 % Income taxes 74,911 3.6 % 70,031 3.5 % (4,880) (7.0) % Effective tax rate 22.2 % 23.7 % 1.5 % Net income $ 261,883 12.5 % $ 225,123 11.2 % $ 36,760 16.3 % Basic earnings per share $ 4.69 $ 3.96 $ 0.73 18.4 % Diluted earnings per share $ 4.66 $ 3.91 $ 0.75 19.2 % Weighted average shares (basic) 55,801 56,841 Weighted average shares (diluted) 56,242 57,505 Expand Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) Balance Sheet Highlights Selected Consolidated Balance Sheet Data June 30, 2025 December 31, 2024 Cash and cash equivalents $ 299,481 $ 377,262 Accounts receivable, net 554,277 481,979 Inventories 621,440 544,037 Total current assets 1,725,226 1,645,281 Property, plant and equipment, net 660,672 619,181 Total assets 3,727,369 3,520,142 Trade accounts payable 375,833 296,590 Total current liabilities (1) 1,025,239 878,802 Long-term debt, less current portion 1,150,395 1,150,551 Total equity 1,379,613 1,327,433 Operating Working Capital June 30, 2025 December 31, 2024 Average operating working capital to Net sales (2) 18.4 % 16.9 % Invested Capital June 30, 2025 December 31, 2024 Short-term debt (1) $ 105,323 $ 110,524 Long-term debt, less current portion 1,150,395 1,150,551 Total debt 1,255,718 1,261,075 Total equity 1,379,613 1,327,433 Invested capital $ 2,635,331 $ 2,588,508 Total debt / invested capital 47.6 % 48.7 % Expand (1) Includes current portion of long-term debt. (2) Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales. Expand Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, Operating income as reported $ 192,144 $ 148,838 $ 357,062 $ 313,885 Special items (pre-tax): Rationalization and asset impairment charges (2) 2,542 26,490 6,407 31,095 Acquisition transaction costs (3) 429 2,182 1,231 3,944 Amortization of step up in value of acquired inventories (4) — 112 (140) 112 Adjusted operating income (1) $ 195,115 $ 177,622 $ 364,560 $ 349,036 As a percent of net sales 17.9 % 17.4 % 17.4 % 17.4 % Net income as reported $ 143,396 $ 101,708 $ 261,883 $ 225,123 Special items: Rationalization and asset impairment charges (2) 2,542 26,490 6,407 31,095 Acquisition transaction costs (3) 429 2,182 1,231 3,944 Amortization of step up in value of acquired inventories (4) — 112 (140) 112 Loss on asset disposal (5) — 4,950 — 4,950 Tax effect of Special items (6) (755) (1,182) (1,913) (2,308) Adjusted net income (1) 145,612 134,260 267,468 262,916 Interest expense, net 12,619 10,661 24,746 19,440 Income taxes as reported 40,163 34,916 74,911 70,031 Tax effect of Special items (6) 755 1,182 1,913 2,308 Adjusted EBIT (1) $ 199,149 $ 181,019 $ 369,038 $ 354,695 Effective tax rate as reported 21.9 % 25.6 % 22.2 % 23.7 % Net special item tax impact 0.0 % (4.4) % 0.1 % (2.1) % Adjusted effective tax rate (1) 21.9 % 21.2 % 22.3 % 21.6 % Diluted earnings per share as reported $ 2.56 $ 1.77 $ 4.66 $ 3.91 Special items per share 0.04 0.57 0.10 0.66 Adjusted diluted earnings per share (1) $ 2.60 $ 2.34 $ 4.76 $ 4.57 Weighted average shares (diluted) 55,968 57,366 56,242 57,505 Expand (1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. (2) 2025 charges primarily relate to rationalization plans initiated in Americas Welding and International Welding. 2024 charges primarily relate to rationalization plans initiated within International Welding and the Harris Products Group. (3) Transaction costs related to acquisitions which are included in Selling, general & administrative expenses. (4) Costs related to acquisitions which are included in Cost of goods sold. (5) Loss on asset disposal included in Other income (expense). (6) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. Expand Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Twelve Months Ended June 30, Return on Invested Capital 2025 2024 Net income as reported $ 502,868 $ 511,110 Plus: Interest expense (after-tax) 42,688 36,607 Less: Interest income (after-tax) 6,636 7,654 Net operating profit after taxes $ 538,920 $ 540,063 Special Items: Rationalization and asset impairment charges 31,172 16,237 Acquisition transaction costs 4,332 3,944 Pension settlement charges 3,792 845 Amortization of step up in value of acquired inventories 4,771 4,964 Loss on asset disposal — 4,950 Tax effect of Special items (2) (11,118) 2,357 Adjusted net operating profit after taxes (1) $ 571,869 $ 573,360 Invested Capital June 30, 2025 June 30, 2024 Short-term debt $ 105,323 $ 6,254 Long-term debt, less current portion 1,150,395 1,098,430 Total debt 1,255,718 1,104,684 Total equity 1,379,613 1,312,906 Invested capital $ 2,635,331 $ 2,417,590 Return on invested capital as reported 20.4 % 22.3 % Adjusted return on invested capital (1) 21.7 % 23.7 % Expand (1) Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. (2) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. Expand Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2025 2024 OPERATING ACTIVITIES: Net income $ 261,883 $ 225,123 Adjustments to reconcile Net income to Net cash provided by operating activities: Rationalization and asset impairment net charges 675 23,751 Depreciation and amortization 48,246 42,451 Other non-cash items, net (14,919 ) 16,535 Changes in operating assets and liabilities, net of effects from acquisitions: Increase in accounts receivable (52,208 ) (14,484 ) Increase in inventories (47,648 ) (27,626 ) Increase in other current assets (3,408 ) (5,153 ) Increase in trade accounts payable 68,092 28,956 Increase (decrease) in other current liabilities 68,579 (5,092 ) Net change in other long-term assets and liabilities 229 19,520 NET CASH PROVIDED BY OPERATING ACTIVITIES 329,521 303,981 INVESTING ACTIVITIES: Capital expenditures (52,392 ) (49,395 ) Acquisition of businesses, net of cash acquired (32,309 ) (152,654 ) Proceeds from sale of property, plant and equipment 5,231 1,303 NET CASH USED BY INVESTING ACTIVITIES (79,470 ) (200,746 ) FINANCING ACTIVITIES: Payments on short-term borrowings (5,206 ) (578 ) Proceeds from long-term borrowings — 400,000 Payments on long-term borrowings (169 ) (400,339 ) Proceeds from exercise of stock options 6,394 24,981 Purchase of shares for treasury (233,824 ) (160,820 ) Cash dividends paid to shareholders (84,904 ) (81,696 ) NET CASH USED BY FINANCING ACTIVITIES (317,709 ) (218,452 ) Effect of exchange rate changes on Cash and cash equivalents (10,123 ) (5,898 ) Cash and cash equivalents at beginning of period 377,262 393,787 Cash and cash equivalents at end of period $ 299,481 $ 272,672 Cash dividends paid per share $ 1.50 $ 1.42 Expand Lincoln Electric Holdings, Inc. Segment Highlights (1) (In thousands) (Unaudited) Net sales $ 696,730 $ 232,824 $ 159,119 $ — $ 1,088,673 Inter-segment sales 43,391 7,641 5,110 (56,142) — Total sales $ 740,121 $ 240,465 $ 164,229 $ (56,142) $ 1,088,673 Net income $ 143,396 As a percent of total sales 13.2 % EBIT (1) $ 137,010 $ 28,999 $ 31,798 $ (1,629) $ 196,178 As a percent of total sales 18.5 % 12.1 % 19.4 % 18.0 % Special items charges (3) 905 1,551 86 429 2,971 Adjusted EBIT (2) $ 137,915 $ 30,550 $ 31,884 $ (1,200) $ 199,149 As a percent of total sales 18.6 % 12.7 % 19.4 % 18.3 % Three months ended June 30, 2024 Net sales $ 648,936 $ 238,758 $ 133,989 $ — $ 1,021,683 Inter-segment sales 37,800 8,849 3,272 (49,921) — Total sales $ 686,736 $ 247,607 $ 137,261 $ (49,921) $ 1,021,683 Net income $ 101,708 As a percent of total sales 10 % EBIT (1) $ 136,297 $ (5,525) $ 25,063 $ (8,550) $ 147,285 As a percent of total sales 19.8 % (2.2) % 18.3 % 14.4 % Special items charges (4) 354 31,234 (140) 2,286 33,734 Adjusted EBIT (2) $ 136,651 $ 25,709 $ 24,923 $ (6,264) $ 181,019 As a percent of total sales 19.9 % 10.4 % 18.2 % 17.7 % Expand (1) EBIT is defined as Operating income plus Other income. (2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. (3) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $905 in Americas Welding, $1,551 in International Welding and $86 in Harris Products Group, as well as acquisition transaction costs of $429 in Corporate/Eliminations. Expand Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) Six months ended June 30, 2025 Net sales $ 1,349,837 $ 451,885 $ 291,339 $ — $ 2,093,061 Inter-segment sales 73,763 14,473 9,094 (97,330) — Total sales $ 1,423,600 $ 466,358 $ 300,433 $ (97,330) $ 2,093,061 Net income $ 261,883 As a percent of total sales 12.5 % EBIT (1) $ 259,073 $ 50,599 $ 55,949 $ (4,081) $ 361,540 As a percent of total sales 18.2 % 10.8 % 18.6 % 17.3 % Special items charges (3) 3,040 2,963 264 1,231 7,498 Adjusted EBIT (2) $ 262,113 $ 53,562 $ 56,213 $ (2,850) $ 369,038 As a percent of total sales 18.4 % 11.5 % 18.7 % 17.6 % Six months ended June 30, 2024 Net sales $ 1,273,035 $ 474,519 $ 255,326 $ — $ 2,002,880 Inter-segment sales 67,778 17,257 6,365 (91,400) — Total sales $ 1,340,813 $ 491,776 $ 261,691 $ (91,400) $ 2,002,880 Net income $ 225,123 As a percent of total sales 11.2 % EBIT (1) $ 272,396 $ 19,182 $ 43,406 $ (20,390) $ 314,594 As a percent of total sales 20.3 % 3.9 % 16.6 % 15.7 % Special items charges (4) 354 34,304 1,396 4,047 40,101 Adjusted EBIT (2) $ 272,750 $ 53,486 $ 44,802 $ (16,343) $ 354,695 As a percent of total sales 20.3 % 10.9 % 17.1 % 17.7 % Expand (1) EBIT is defined as Operating income plus Other income. (2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. (3) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $3,040 in Americas Welding, $3,103 in International Welding and $264 in Harris Products Group, as well as acquisition transaction costs of $1,231 in Corporate/Eliminations. (4) Special items in 2024 primarily reflect rationalization net charges of $29,354 in International Welding, primarily due to the impact of the Company's disposition of its Russian entity, and $1,396 in the Harris Products Group, a loss on asset disposal of $4,950 recorded to Other income (expense) in International Welding, and acquisition transaction costs of $3,944 in Corporate/Eliminations. Expand Six Months Ended June 30 th Change in Net Sales by Segment Operating Segments Americas Welding $ 1,273,035 $ (47,086) $ 55,634 $ 77,519 $ (9,265) $ 1,349,837 International Welding 474,519 (29,820) 1,680 1,130 4,376 451,885 The Harris Products Group 255,326 15,458 21,392 — (837) 291,339 % Change Americas Welding (3.7) % 4.4 % 6.1 % (0.8) % 6.0 % International Welding (6.3) % 0.4 % 0.2 % 0.9 % (4.8) % The Harris Products Group 6.1 % 8.4 % — (0.4) % 14.1 % Consolidated (3.1) % 3.9 % 3.9 % (0.2) % 4.5 % Expand
Yahoo
17-05-2025
- Business
- Yahoo
Lincoln Electric Holdings (NASDAQ:LECO) Looks To Prolong Its Impressive Returns
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. That's why when we briefly looked at Lincoln Electric Holdings' (NASDAQ:LECO) ROCE trend, we were very happy with what we saw. We've discovered 1 warning sign about Lincoln Electric Holdings. View them for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Lincoln Electric Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.26 = US$700m ÷ (US$3.6b - US$970m) (Based on the trailing twelve months to March 2025). So, Lincoln Electric Holdings has an ROCE of 26%. That's a fantastic return and not only that, it outpaces the average of 11% earned by companies in a similar industry. Check out our latest analysis for Lincoln Electric Holdings In the above chart we have measured Lincoln Electric Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Lincoln Electric Holdings . In terms of Lincoln Electric Holdings' history of ROCE, it's quite impressive. Over the past five years, ROCE has remained relatively flat at around 26% and the business has deployed 61% more capital into its operations. With returns that high, it's great that the business can continually reinvest its money at such appealing rates of return. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger. In short, we'd argue Lincoln Electric Holdings has the makings of a multi-bagger since its been able to compound its capital at very profitable rates of return. And the stock has done incredibly well with a 176% return over the last five years, so long term investors are no doubt ecstatic with that result. So while investors seem to be recognizing these promising trends, we still believe the stock deserves further research. If you'd like to know about the risks facing Lincoln Electric Holdings, we've discovered 1 warning sign that you should be aware of. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-04-2025
- Business
- Yahoo
Lincoln Electric Holdings, Inc. (LECO): One of the Overlooked Dividend Stocks to Buy Now
We recently published a list of the 10 Overlooked Dividend Stocks to Buy Now. In this article, we are going to take a look at where Lincoln Electric Holdings, Inc. (NASDAQ:LECO) stands against other overlooked dividend stocks. In recent times, dividend investing—also known as equity income—has fallen out of favor. Once a widely followed and dependable strategy, it has gradually been overshadowed. The strong capital gains delivered by growth stocks appear to have shifted investors' attention away from the more stable and consistent returns that come with dividend-paying stocks. However, the recent market downturn, combined with the economic impact of Trump's trade policies, has brought renewed attention and appeal to these types of stocks. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 2% since the start of 2025, compared with a 6% fall in the broader market. Dividend stocks have seen mixed results over different economic cycles—performing well in some downturns and falling behind in others. They generally outpaced the broader market during the recessions starting in July 1981, March 2001, and December 2007. However, their performance lagged during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from major firms, along with limited exposure to fast-growing tech names. For context, the steepest drop in dividends came during the 2008–09 financial crisis, when S&P dividend payouts declined by 24%, though investors still received 76% of their income. That said, while the possibility of dividend reductions is a valid concern and a potential drawback of this strategy, it shouldn't be a reason to overlook dividend stocks altogether. When incorporated thoughtfully, they can still play a valuable role in a well-rounded investment portfolio. M&G Investments noted that dividends serve as more than just income—they also signal a company's financial health and management's confidence. While short-term market returns often hinge on stock valuations, dividends play a much more substantial role in driving equity returns over longer periods, such as 10 or 20 years. The report also mentioned, citing Bloomberg's data, that dividends play a vital role in long-term returns. Over the last 25 years, nearly half of the total gains from US stocks have come from reinvested dividends and the power of compounding. During this period, the broader market delivered an average annual return of 7.4%, with 55% attributed to rising stock prices and the remaining 45% coming from reinvested dividend income. The fact that dividends are not guaranteed highlights a deeper financial story behind corporate decisions. Companies must carefully weigh the trade-off between returning profits to shareholders and keeping enough earnings on hand to support future expansion. Getting this balance right is a strategic task. A particularly high dividend payout ratio—typically above 75%, though this varies by sector—can raise red flags about sustainability. When too much profit is paid out, there's little room left to increase dividends down the line. This could eventually lead a company to scale back or even stop its dividend payments altogether, which may hold back both business growth and long-term gains in share value. Given this, we will take a look at some overlooked stocks that pay dividends. A welder wearing protective gear, wearing a satisfied expression after completing his work. For this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron's, and Business Insider and searched for stocks that remain under the radar but have strong balance sheets and sound financials. In addition, these lesser-known dividend companies also boast dividend growth track records, which make them a reliable option for income investors. After compiling our data, we picked 10 companies with the highest number of hedge fund investors, as per Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 36 Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is an Ohio-based multinational company that specializes in welding products. The company is also known for its proficiency in industrial automation and cutting equipment. Recently, the company has focused on expanding its industrial automation segment, anticipating significant growth and nearly $1 billion in revenue. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)'s strategy revolves around meeting customer demand and effectively managing costs. By delivering high-quality products and fostering strong brand loyalty, the company maintains a competitive edge in a mature industry. Its investment in technology and commitment to a skilled workforce further strengthen its market position. In the fourth quarter of 2024, Lincoln Electric Holdings, Inc. (NASDAQ:LECO) reported revenue of $1.02 billion, down 3.45% from the same period last year. However, the revenue surpassed analysts' estimates by over $26 million. Although enhanced operational efficiencies had a positive impact, macroeconomic challenges and fluctuations in industrial sector demand continued to pose potential risks. Special item charges and higher selling expenses led to a 10.5% year-over-year decline in net income, which totaled $140.2 million. Lincoln Electric Holdings, Inc. (NASDAQ:LECO) ended the year with over $377 million in cash and cash equivalents. The company reported an operating cash flow of $95.8 million. In FY24, it returned $426 million to shareholders through dividends and share repurchases, affirming its commitment to shareholder return. In addition, it has been growing its payouts for 29 consecutive years. Currently, it pays a quarterly dividend of $0.75 per share for a dividend yield of 1.61%, as of April 25. Overall, LECO ranks 3rd on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of LECO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LECO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
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06-03-2025
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What Does Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) Share Price Indicate?
Today we're going to take a look at the well-established Lincoln Electric Holdings, Inc. (NASDAQ:LECO). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$220 at one point, and dropping to the lows of US$181. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lincoln Electric Holdings' current trading price of US$196 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Lincoln Electric Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Lincoln Electric Holdings The stock seems fairly valued at the moment according to our valuation model. It's trading around 5.6% below our intrinsic value, which means if you buy Lincoln Electric Holdings today, you'd be paying a reasonable price for it. And if you believe the company's true value is $207.52, then there's not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Lincoln Electric Holdings's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 36% over the next couple of years, the future seems bright for Lincoln Electric Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in LECO's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on LECO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Lincoln Electric Holdings. If you are no longer interested in Lincoln Electric Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
