Latest Ratios: P/E Ratio 27.4x · EV/EBITDA 18.5x · 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 | $14.0B | $13.4B | $10.7B | $12.7B | $8.5B | $8.4B | $7.0B | $6.1B | $5.2B | $6.1B | $5.2B |
| Enterprise Value | $15.0B | $14.4B | $11.7B | $13.4B | $9.5B | $9.0B | $7.5B | $6.7B | $4.8B | $5.8B | $4.8B |
| P/E Ratio → | 27.45 | 25.71 | 23.00 | 23.21 | 17.97 | 30.32 | 33.99 | 20.67 | 18.04 | 24.68 | 26.35 |
| P/S Ratio | 3.31 | 3.16 | 2.67 | 3.02 | 2.26 | 2.59 | 2.64 | 2.02 | 1.71 | 2.33 | 2.30 |
| P/B Ratio | 9.72 | 9.11 | 8.08 | 9.67 | 8.21 | 9.70 | 8.86 | 7.39 | 5.83 | 6.54 | 7.33 |
| P/FCF | 26.25 | 25.07 | 22.23 | 21.96 | 27.25 | 27.69 | 23.97 | 18.17 | 20.08 | 22.34 | 20.61 |
| P/OCF | 21.21 | 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 | 18.45 | 17.67 | 16.09 | 16.69 | 13.82 | 16.59 | 20.71 | 14.72 | 10.76 | 12.96 | 13.72 |
| EV / EBIT | 20.99 | 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 |
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 | 11.69 | 11.69 | 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 | 1.2% | 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 | 3.6% | 3.9% | 4.3% | 4.3% | 5.6% | 3.3% | 2.9% | 4.8% | 5.5% | 4.1% | 3.8% |
| FCF Yield | 3.8% | 4.0% | 4.5% | 4.6% | 3.7% | 3.6% | 4.2% | 5.5% | 5.0% | 4.5% | 4.9% |
| Buyback Yield | 2.4% | 2.5% | 2.5% | 1.6% | 2.1% | 2.0% | 1.6% | 4.8% | 3.9% | 0.7% | 6.5% |
| Total Shareholder Yield | 3.6% | 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 |
Commodity Input Cost Volatility
Based on current market data, LECO trades at a TTM P/E of 28.60, which appears to price in significant future growth in automation and software-enabled power electronics, representing a notable premium over traditional industrial peers that lack similar exposure to high-margin, recurring consumable revenue streams.
The forward P/E of 24.34 suggests that investors are anticipating a sustained expansion in earnings as the company scales its robotic and EV-charger initiatives. While this valuation is elevated relative to historical averages, it may be justified if the market begins to re-rate the firm as a technology-enabled industrial platform rather than a cyclical hardware manufacturer.
As reported in financial statements, LECO's ROIC has trended downward from 7.4% in 2023Q4 to 5.6% in 2026Q1, suggesting that recent capital deployment into acquisitions and automation capacity may not yet be generating the expected incremental returns on invested capital relative to the company's historical performance.
The decline in ROIC appears to be driven by a combination of rising asset intensity and the integration of lower-margin international operations. Investors should monitor whether management can improve capital efficiency as these recent investments reach full operational maturity and contribute more meaningfully to the bottom line.
According to recent quarterly filings, the cash conversion cycle has remained elevated, averaging approximately 82 days over the last ten quarters, which indicates that the company's working capital management is heavily influenced by inventory requirements and the timing of customer payments in the welding equipment segment.
The persistent inventory levels, reflected in a DIO that often exceeds 80 days, suggest a strategic decision to maintain high stock levels to ensure service continuity for critical industrial customers. While this supports the company's competitive moat, it simultaneously creates a drag on free cash flow generation and overall asset turnover.
Based on reported figures, LECO's debt-to-equity ratio has risen to 0.98 in 2026Q1 from 0.89 in 2023Q4, indicating a shift toward utilizing the balance sheet to fund inorganic growth and the ongoing transition into higher-growth automation markets while maintaining manageable interest coverage ratios.
Although leverage has increased, the interest coverage ratio remains robust at 14.24, suggesting that the company faces minimal immediate refinancing risk. The current debt profile appears appropriate for an industrial firm of this scale, provided that the acquired assets continue to support the company's long-term margin expansion goals.
The P/E ratio is frequently misapplied to LECO because it fails to account for the significant, non-recurring impact of the company's unique variable incentive bonus structure, which can artificially depress GAAP earnings in high-performance years and distort the perceived valuation of the business model.
Analysts should instead focus on normalized operating margins or EV/EBITDA, which better capture the underlying earning power of the business by smoothing out the impact of the variable labor compensation. Relying solely on P/E may lead to an incorrect assessment of the company's cyclicality and its true growth potential.
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 27.4x. 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 18.5x. 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 27.4x. 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 1.18% 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.