Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 25 May 2026
LECO· Industrials
Lincoln Electric Holdings
Lincoln Electric's solid ROIC of 19% and consistent profitability face challenges from below-average gross margins and high valuation multiples.
Buffett fit
Partial fit
Owner
52
Durability
84
Management
38
Price
43
Score updated 27 Oct 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Lincoln Electric, I'd appreciate the solid of 19.1% and consistent EPS growth of 19.14% over the last five years.
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The 10-year test shows Lincoln Electric's resilience, with profitability in all five years and a revenue CAGR of 6.95%.
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Management has reduced share count by 1.69% over five years, indicating a commitment to returning value to shareholders.
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The owner's earnings yield of 3.74% is below the 8-10% threshold I prefer, indicating a lack of .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 19.1% sits in the top quintile for Industrials (sector p80: 13.8%).
- 2Consistent EPS growth of 19.14% over the last five years.
- 3Positive of $534.2M indicates strong cash generation.
- 4 of 17.12% is in the top quintile for the sector (p80: 17.0%).
Concerns
5- 1 of 36.1% is below the sector top-quintile cutoff of 43.7%.
- 2 of 26.6 prices in high growth expectations, challenging to justify.
- 3Current ratio of 1.83, while acceptable, indicates limited liquidity cushion.
- 4Dividend CAGR of -5.44% raises questions about future shareholder returns.
Price history
$282+98.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Lincoln Electric designs, manufactures, and sells welding products globally, generating $4.23B in revenue. The company operates through three segments, providing a diverse range of welding solutions. Their products serve various industries, ensuring steady demand. The unit economics are solid, with a net income of $520.53M.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Industrials
Questions about Lincoln Electric Holdings
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