Lincoln Electric Holdings (FRA:LNE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lincoln Electric Holdings had a gross margin of 35.59% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lincoln Electric Holdings Gross Margin % Related Terms
Lincoln Electric Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:LNE vs SWK, TKR, RBC: Gross Margin % Comparison
For the Tools & Accessories subindustry, Lincoln Electric Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lincoln Electric Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lincoln Electric Holdings (FRA:LNE) has a Gross Margin % of 35.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lincoln Electric Holdings and its competitors. This is near median its historical median of 34.01. Over the past decade, Lincoln Electric Holdings' Gross Margin % has ranged from 32.81 to 36.74. According to the industry distribution chart, Lincoln Electric Holdings ranks #848 out of 2997 companies in the Industrial Products industry, placing it in the top 28.3%.
Is Lincoln Electric Holdings' Gross Margin % too high?
Lincoln Electric Holdings' current Gross Margin % of 35.59% is near median its 10-year median of 34.01. Over the past 10 years, this metric has ranged from a low of 32.81 to a high of 36.74. The Industrial Products industry median Gross Margin % is 26.81. Lincoln Electric Holdings' value of 35.59% is 32.7% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #848 out of 2997 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Lincoln Electric Holdings has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' Gross Margin % compare to SWK and TKR?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #848 out of 2997 companies for Gross Margin %. This puts Lincoln Electric Holdings in the upper half of its industry. The industry median Gross Margin % is 26.81. Lincoln Electric Holdings' value of 35.59% is 32.7% above this benchmark. Historically, Lincoln Electric Holdings' own Gross Margin % has ranged from 32.81 to 36.74 over the past decade. While the company's 10-year median is 34.01 vs. the industry median of 26.81, Lincoln Electric Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current Gross Margin % of 35.59% is 32.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current Gross Margin % is 35.59%, which is near median its own 10-year median of 34.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lincoln Electric Holdings stock overvalued right now?
Lincoln Electric Holdings (FRA:LNE) has a current Gross Margin % of 35.59%. The stock's GF Value™ is €206.32, compared to a current price of €230.00 — trading 11.5% above its estimated fair value. The current Gross Margin % is 35.59%, which is near median its 10-year median of 34.01 and 32.7% above the Industrial Products industry median of 26.81. Lincoln Electric Holdings' overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lincoln Electric Holdings (FRA:LNE), the current Gross Margin % is 35.59% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lincoln Electric Holdings (FRA:LNE) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Electric Holdings stock appears to be overvalued.
The current stock price of €230.00 is trading 11.5% above its estimated GF Value™ of €206.32.
Key valuation signals for FRA:LNE:
Gross Margin %: 35.59% (near median its 10-year median of 34.01)
GF Value™: €206.32 vs. price of €230.00 (11.5% above fair value)
Industry Position: 32.7% above the Industrial Products median (#848 of 2997)
No single metric tells the full story. See the FRA:LNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. Its portfolio includes arc-welding solutions, plasma and oxy-fuel cutting systems, brazing and soldering alloys, and automation solutions. Lincoln Electric serves clients across general fabrication, heavy industries, automotive, construction, shipbuilding, energy, and process industries, among others. The company generated roughly $4.2 billion in sales in 2025.
98GF Score
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