Lincoln Story

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LECO -- USA Stock  

USD 117.63  1.50  1.26%

As many millenniums are excited about industrials space, it is only fair to outline Lincoln Electric Holdings. We will evaluate why we are still confident in anticipation of a recovery. Is the entity current valuation justified? We will cover the stock valuation to give you a better outlook on taking a position in the stock.
Published over a week ago
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Is Lincoln Electric Hol outlook positive for March 2021?
This firm currently holds 766.6 M in liabilities with Debt to Equity (D/E) ratio of 1.08, which is about average as compared to similar companies. The company secures a Beta (Market Risk) of -0.1795, which conveys not very significant fluctuations relative to the market. Let's try to break down what Lincoln's beta means in this case. As returns on the market increase, returns on owning Lincoln Electric are expected to decrease at a much lower rate. During the bear market, Lincoln Electric is likely to outperform the market. Even though it is essential to pay attention to Lincoln Electric Hol price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Lincoln Electric exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Lincoln Electric Hol has an expected return of -0.0521%. Please be advised to verify Lincoln Electric Holdings downside variance, and the relationship between the treynor ratio and kurtosis to decide if Lincoln Electric Hol stock performance from the past will be repeated at some point in the near future.
We determine the current worth of Lincoln Elec Hld using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lincoln Elec Hld based exclusively on its fundamental and basic technical indicators. By analyzing Lincoln Elec's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lincoln Elec's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lincoln Elec. We calculate exposure to Lincoln Elec's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lincoln Elec's related companies.

Lincoln Elec Hld Investment Alerts

Lincoln investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Lincoln Elec Hld performance across your portfolios.Please check all investment alerts for Lincoln

Lincoln Elec Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Lincoln value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lincoln Elec competition to find correlations between indicators driving the intrinsic value of Lincoln.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Lincoln Elec, but it might be worth checking our own buy vs. sell analysis

Payment of 407 shares by Whitehead Michael J of Lincoln Elec subject to Rule 16b-3

Legal trades by Lincoln Elec insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lincoln insider trading alert for payment of common shares by Whitehead Michael J, SVP President Global Automat, on 23rd of February 2021. This event was filed by Lincoln Electric Holdings with SEC on 2021-02-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Lincoln

The company reported the previous year's revenue of 2.7 B. Net Income was 204.75 M with profit before overhead, payroll, taxes, and interest of 1.01 B.

Margins Breakdown

Lincoln profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Lincoln Electric itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Lincoln Electric profit margins.
Operating Margin10.79
EBITDA Margin0.18
Gross Margin0.39
Profit Margin0.11


Lincoln Electric Revenue Per Employee is quite stable at the moment. Further, Lincoln Electric Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

Lincoln Electric is projected to stay under $118 in March

Kurtosis is down to 58.49. It may entail a possible volatility slide. Lincoln Electric Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Lincoln Electric Holdings independently to ensure intended market timing strategies are aligned with expectations about Lincoln Electric volatility.

Our Takeaway on Lincoln Electric Investment

Whereas some other companies in the tools & accessories industry are either recovering or due for a correction, Lincoln Electric may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 12th of February 2021, our research shows that Lincoln Electric is a rather very steady investment opportunity with a low probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our present 30 days buy-or-sell advice on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Lincoln Elec Hld. Please refer to our Terms of Use for any information regarding our disclosure principles.

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