Home Sectors Industrials Current Fundamentals: Lincoln Electric (NASDAQ: LECO)

Current Fundamentals: Lincoln Electric (NASDAQ: LECO)

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Lincoln Electric is part of the industrial products industry and is in the industrials sector. The company CEO is Christopher L. Mapes. Lincoln Electric ,, manufactures welding, cutting and brazing products. Its welding product includes arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes.

Previous Intraday Trading Performance:

The LECO stock showed a previous change of 0.40% with an open at 81.04 and a close of 80.51. It reached an intraday high of 81.91 and a low of 80.15.

SeekingAlpha:  Lincoln Electric Holdings (LECO) Presents At KeyBanc Capital Markets 2019 Industrials & Basic Materials Conference – Slideshow

Liquidity:

The stock has a market cap of $5.1b with 62.8m shares outstanding, of which the float is 61.5m shares. Trading volume reached 156,540 shares compared to its average volume of 266,216 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Lincoln Electric shares returned -0.51% and in the past 30 trading days it returned -7.75%. Over three months, it changed -5.20%. In one year it has changed -11.59% and within that year its 52-week high was 97.93 and its 52-week low was 72.27. LECO stock is 11.39% above its 52 Week Low.

Our calculations show a 200 day moving average of 84.82 and a 50 day moving average of 84.15. Currently LECO stock is trading -5.08% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Lincoln Electric Holdings (LECO) Presents At KeyBanc Capital Markets 2019 Industrials & Basic Materials Conference – Slideshow

Earnings:

The last annual fiscal EPS for the company was reported at 4.37 that ended on 31st of December 2018, which according to the previous close, that is a PE of 18.42. Based on 7 analyst estimates, the consensus EPS for the next quarter is 1.24. The TTM EPS is 4.82, which comes to a TTM PE of 16.70. Historically, the PE high was 48.20 and the PE low was 15.60. If the stock reached its PE low, that would represent a price of 75.21, which is a decrease of -6.59%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/22/2019): 1.12
4thQtr of 2018 (Reported on 02/14/2019): 1.35
3rdQtr of 2018 (Reported on 10/25/2018): 1.07
2ndQtr of 2018 (Reported on 07/23/2018): 1.04
1stQtr of 2018 (Reported on 04/23/2018): 0.92

The dividend per share is currently 1.88, which is a dividend yield of 2.34%. Also, the payout ratio is 39.00%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 89.72, which means it is possibly undervalued and has a margin of safety of 10.27%.

Indicators to Watch:

The current calculated beta is 1.24.

Business Wire:  EnscoRowan Announces Successful Completion of Consent Solicitation with Respect to Rowan Companies Notes

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 33.90%, return on assets is 12.88%, profit margin is 9.90%, price-to-sales is 1.66 and price-to-book is 5.83.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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