Stock fact sheet · data as of
Lincoln Electric Holdings, Inc. (LECO): fair value, margin of safety and Wheel Score
Industrials · Manufacturing - Tools & Accessories · United States · Quality / Blue-Chip
Is LECO undervalued?
At 260.24 (close of 16 Oct 2026), LECO trades 55% over the GLS average fair value of 167.87, with 2 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between DDM (46.50) and Graham Growth (318.59). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files LECO under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for LECO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 123.98 | -52% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 80.49 | -69% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 318.59 | +22% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 119.88 | -54% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 183.56 | -29% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 265.91 | +2% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 259.39 | -0% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 46.50 | -82% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 112.52 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.43 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 303.60 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Lincoln Electric Holdings, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 8.1/10 puts LECO among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 18.9%, ROE 35.4%, ROA 13.8% - with debt at 0.88 times equity and a free-cash-flow yield of 3.6%.
The dividend yield is 1.21% with a payout ratio of 31% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Americas Welding 64%, International Welding 20%, The Harris Products Group 16% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 18.9% |
|---|---|---|---|
| GLS Moat | 8.1 / 10 | ROE | 35.4% |
| Debt / equity | 0.88 | ROA | 13.8% |
| Free-cash-flow yield | 3.6% | Payout ratio | 31% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 65: Good
With a Wheel Score of 65 - the Good band - Lincoln Electric Holdings, Inc. falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 0/25, Health 18/20, Moat 12/15, Premium 20/20, Stability 15/20; Value (0/25) scores lowest.
Implied volatility is 37% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,011 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 336k shares a day on a market cap of $14.2B, with a beta of 1.22 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -55% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 12 / 15 | moat 8.1/10 | |
| Premium | 20 / 20 | implied volatility 37% | |
| Stability | 15 / 20 | 336k shares/day, $14.2B cap, beta 1.22 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Lincoln Electric Holdings, Inc. reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Manufacturing - Tools & Accessories
The 11 companies below are the closest to Lincoln Electric Holdings, Inc. by market cap within the Manufacturing - Tools & Accessories industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SWK Stanley Black & Decker, Inc. | 90.29 | 132.49 | +32% | 86Prime | $13.6B |
| RBC RBC Bearings Incorporated | 498.54 | 203.15 | -145% | 60Fair | $15.8B |
| SNA Snap-on Incorporated | 363.51 | 303.10 | -20% | 55Fair | $18.8B |
| TTC The Toro Company | 98.26 | 72.41 | -36% | 56Fair | $9.3B |
| TKR The Timken Company | 112.32 | 78.67 | -43% | 63Fair | $7.8B |
| KMT Kennametal Inc. | 30.99 | 37.77 | +18% | 75Good | $2.4B |
| HLMN Hillman Solutions Corp. | 7.26 | 7.85 | +8% | 73Good | $1.4B |
| QEPC Q.E.P. Co., Inc. | 55.98 | 134.90 | +59% | 39No options | $167M |
| EML The Eastern Company | 25.04 | 22.51 | -11% | 31No options | $151M |
| DMFG Decker Manufacturing Corporation | 57.10 | 206.15 | +72% | 39No options | $50M |
| ILAG Intelligent Living Application Group Inc. | 2.85 | - | - | 20No options | $6M |
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Start free See the Sunday ScanQuestions about LECO
Is LECO undervalued right now?
No: at 260.24 the stock trades 55% above the GLS average fair value of 167.87 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of LECO and what does it mean?
LECO scores 65 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LECO?
167.87 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lincoln Electric Holdings, Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LECO have listed options, and how liquid are they?
Yes. The nightly snapshot found 330 listed contracts with 3,011 open interest across all expiries and implied volatility of 37% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.