Lincoln Electric HoldingsLECO +1.85%97 Interest Coverage is 14.08 as of Mar. 2026, which is 16% below its 10-year median of 16.84. GuruFocus rates LECO with a GF Score™ of 97/100 and a GF Value™ of $236.90 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,329 Industrial Products companies, Lincoln Electric Holdings ranks worse than 50.75% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Lincoln Electric Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $188 Mil. Lincoln Electric Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-13 Mil.
Lincoln Electric Holdings's interest coverage for the quarter that ended in Mar. 2026 was 14.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Lincoln Electric Holdings's Interest Coverage or its related term are showing as below:
LECO'
s Interest Coverage Range Over the Past 10 Years
Min: 14.28 Med: 16.84 Max: 22.82
Current: 14.31
LECO's Interest Coverage is ranked worse than 50.75% of 2329
companies
in the Industrial Products industry
Industry Median: 14.8
vs LECO: 14.31
Lincoln Electric Holdings (NAS:LECO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Lincoln Electric Holdings Interest Coverage Related Terms
Lincoln Electric Holdings Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LECO vs SWK, RBC, SNA: Interest Coverage Comparison
For the Tools & Accessories subindustry, Lincoln Electric Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Interest Coverage falls into.
Lincoln Electric Holdings Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Lincoln Electric Holdings (LECO) has a Interest Coverage of 14.08 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lincoln Electric Holdings and its competitors. This is 16% below median its historical median of 16.84. Over the past decade, Lincoln Electric Holdings' Interest Coverage has ranged from 14.28 to 22.82. According to the industry distribution chart, Lincoln Electric Holdings ranks #1182 out of 2329 companies in the Industrial Products industry, placing it in the top 50.8%.
Is Lincoln Electric Holdings' Interest Coverage too high?
Lincoln Electric Holdings' current Interest Coverage of 14.08 is 16% below median its 10-year median of 16.84. Over the past 10 years, this metric has ranged from a low of 14.28 to a high of 22.82. The Industrial Products industry median Interest Coverage is 14.80. Lincoln Electric Holdings' value of 14.08 is 4.9% below this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #1182 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Lincoln Electric Holdings has a GF Score™ of 97/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' Interest Coverage compare to SWK and RBC?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #1182 out of 2329 companies for Interest Coverage. This places Lincoln Electric Holdings in the lower half of its industry. The industry median Interest Coverage is 14.80. Lincoln Electric Holdings' value of 14.08 is 4.9% below this benchmark. Historically, Lincoln Electric Holdings' own Interest Coverage has ranged from 14.28 to 22.82 over the past decade. While the company's 10-year median is 16.84 vs. the industry median of 14.80, Lincoln Electric Holdings has consistently been below 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current Interest Coverage of 14.08 is 4.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current Interest Coverage is 14.08, which is 16% below median its own 10-year median of 16.84. 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?
Based on GuruFocus' analysis, Lincoln Electric Holdings (LECO) is currently considered Modestly Overvalued. The stock's GF Value™ is $236.90, compared to a current price of $273.80 — trading 15.6% above its estimated fair value. The current Interest Coverage is 14.08, which is 16% below median its 10-year median of 16.84 and 4.9% below the Industrial Products industry median of 14.80. Lincoln Electric Holdings' overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current Interest Coverage is 14.08 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 (LECO) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Electric Holdings stock appears to be overvalued.
The current stock price of $273.80 is trading 15.6% above its estimated GF Value™ of $236.90.
GuruFocus considers Lincoln Electric Holdings to be Modestly Overvalued.
Key valuation signals for LECO:
Interest Coverage: 14.08 (16% below median its 10-year median of 16.84)
GF Value™: $236.90 vs. price of $273.80 (15.6% above fair value)
Industry Position: 4.9% below the Industrial Products median (#1182 of 2329)
No single metric tells the full story. See the LECO 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.
97GF Score
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