Lincoln Electric Intrinsic Stock Value – LINCOLN ELECTRIC Reports Second Quarter Earnings Results for FY2023
August 21, 2023
🌥️Earnings Overview
LINCOLN ELECTRIC ($NASDAQ:LECO) reported their second quarter FY2023 earnings on June 30, 2023, with total revenue amounting to USD 1060.6 million and net income of USD 137.3 million. This marks an increase of 9.4% and 7.4% respectively from the same quarter of the previous year.
Stock Price
The stock opened at $209.0 and closed at $197.8, corresponding to a decrease of 3.0% from its prior closing price of 204.0. This closing price of $197.8 is the lowest closing price that LINCOLN ELECTRIC has seen in the past four weeks. The company also experienced a 3.0% increase in cash flow from operations, which means that they are financially secure and are able to fund any future initiatives or projects that they may have planned.
Overall, LINCOLN ELECTRIC’s second quarter results are positive and show that they are still capable of achieving their financial goals even in times of economic uncertainty. Going forward, investors should keep an eye on the company’s performance to see how it fares in the future quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lincoln Electric. More…
| Total Revenues | Net Income | Net Margin |
| 3.97k | 477.63 | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lincoln Electric. More…
| Operations | Investing | Financing |
| 564.86 | -526.03 | 29.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lincoln Electric. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.31k | 2.11k | 20.93 |
Key Ratios Snapshot
Some of the financial key ratios for Lincoln Electric are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | 24.4% | 16.2% |
| FCF Margin | ROE | ROA |
| 12.3% | 34.6% | 12.1% |
Analysis – Lincoln Electric Intrinsic Stock Value
We at GoodWhale have conducted an analysis of LINCOLN ELECTRIC‘s fundamentals and have arrived at a fair value of $166.8 per share for the company. This was calculated using our proprietary Valuation Line. However, the current stock price of LINCOLN ELECTRIC is trading at $197.8, which is a fair price that is overvalued by 18.6%. Our analysis shows that there may be a potential opportunity to capitalize on this overvaluation in the near future. More…
Peers
Lincoln Electric Holdings Inc is an American manufacturer of welding products, arc welding equipment, welding consumables, plasma and oxy-fuel cutting equipment. The company was founded in 1895 and is headquartered in Cleveland, Ohio. Lincoln Electric has a global reach with operations in the United States, Canada, Europe, Brazil, China, India, Japan, Singapore, South Korea, and Australia. The company’s main competitors are ESAB Corp, Capstone Green Energy Corp, Emerson Electric Co.
– ESAB Corp ($NYSE:ESAB)
ESAB Group, Inc. is a global leader in the design and manufacture of welding and cutting solutions. The company has a market cap of 2.1B as of 2022 and a Return on Equity of 11.92%. ESAB offers a complete line of welding and cutting products, including equipment, consumables, and personal protective equipment (PPE). The company has a strong focus on research and development, and offers a wide range of products and services to meet the needs of customers in a variety of industries.
– Capstone Green Energy Corp ($NASDAQ:CGRN)
As of 2022, Capstone Green Energy Corp has a market cap of 30.48M and a Return on Equity of -207.53%. The company focuses on providing green energy solutions to businesses and households. Its products include solar panels, wind turbines, and biomass energy products. The company has a strong focus on research and development, and its products are designed to be highly efficient and environmentally friendly.
– Emerson Electric Co ($NYSE:EMR)
Emerson Electric Co is a diversified manufacturing and technology company. It has a market cap of 47.39B as of 2022 and a return on equity of 25.13%. The company operates in a variety of businesses, including process control, tools and storage, industrial automation, climate technologies, and network power. Emerson has a long history of innovation and has been a leader in many of the industries it serves. The company’s strong financial position and commitment to R&D ensure that it will continue to be a major player in the global marketplace.
Summary
LINCOLN ELECTRIC reported strong financial results for the second quarter of the fiscal year 2023, with total revenue reaching USD 1060.6 million, representing a 9.4% year-over-year increase. Net income was USD 137.3 million, up 7.4% from the same period in FY2022. Despite this positive news, LINCOLN ELECTRIC’s stock price dropped the same day.
This could be due to the fact that investors had expected even stronger results or that the market was already anticipating the good news and thus the stock had already priced it in. For long-term investors, LINCOLN ELECTRIC still remains a good investment option given its solid financial performance and potential growth opportunities.
