Lincoln Electric Holdings, Inc. (LECO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lincoln Electric Holdings, Inc.

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Ingersoll Rand, Inc.

Why is Lincoln Electric Holdings, Inc. ?

High Management Efficiency with a high ROCE of 30.76%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.17 times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 30.76%

With ROCE of 31.79%, it has a expensive valuation with a 9.00 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.09%, its profits have fallen by -4.2%

High Institutional Holdings at 83.48%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Lincoln Electric Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lincoln Electric Holdings, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lincoln Electric Holdings, Inc.

14.13%

0.83

31.34%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.23%

EBIT Growth (5y)

15.29%

EBIT to Interest (avg)

15.57

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

1.64

Tax Ratio

21.68%

Dividend Payout Ratio

35.34%

Pledged Shares

Institutional Holding

83.48%

ROCE (avg)

30.76%

ROE (avg)

37.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.24

EV to EBIT

28.32

EV to EBITDA

25.10

EV to Capital Employed

9.00

EV to Sales

4.95

PEG Ratio

Dividend Yield

ROCE (Latest)

31.79%

ROE (Latest)

38.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.55

RAW MATERIAL COST(Y)

Fallen by 0.85% (YoY

CASH AND EQV(HY)

Highest at USD 694.19 MM

NET SALES(Q)

Highest at USD 1,088.3 MM

EPS(Q)

Highest at USD 2.56

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.55 times

Here's what is working for Lincoln Electric Holdings, Inc.

Dividend per share

Highest at USD 6.55 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,088.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 2.56

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 694.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.85% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 24.46 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Lincoln Electric Holdings, Inc.

Debtors Turnover Ratio

Lowest at 6.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio