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I've been keeping an eye on Lincoln Electric Holdings, Inc. (NASDAQ:LECO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LECO has a lot to offer. Basically, it is a financially-robust , dividend-paying company with an impressive track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Lincoln Electric Holdings here.
Established dividend payer with proven track record
In the previous year, LECO has ramped up its bottom line by 18%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 34%, which paints a buoyant picture for the company. LECO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LECO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. LECO's has produced operating cash levels of 0.44x total debt over the past year, which implies that LECO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that LECO is a great dividend company, with a current yield standing at 2.3%. LECO has also been regularly increasing its dividend payments to shareholders over the past decade.
For Lincoln Electric Holdings, I've compiled three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for LECO’s future growth? Take a look at our free research report of analyst consensus for LECO’s outlook.
- Valuation: What is LECO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LECO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LECO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.