Lincoln Electric HoldingsSTU:LNE -1.67%97 Operating Margin % is 16.79% as of Mar. 2026, which is 18% above its 10-year median of 14.28. GuruFocus rates STU:LNE with a GF Score™ of 97/100 and a GF Value™ of €203.21 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 3,038 Industrial Products companies, Lincoln Electric Holdings ranks better than 87.76% on this metric.
Lincoln Electric Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lincoln Electric Holdings's Operating Margin % or its related term are showing as below:
STU:LNE'
s Operating Margin % Range Over the Past 10 Years
Min: 12.33 Med: 14.28 Max: 17.39
Current: 17.37
STU:LNE's Operating Margin % is ranked better than 87.76% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs STU:LNE: 17.37
Lincoln Electric Holdings (STU:LNE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Lincoln Electric Holdings Operating Margin % Related Terms
Lincoln Electric Holdings Operating 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.
Lincoln Electric Holdings Operating Margin % Chart
STU:LNE vs SWK, RBC, SNA: Operating Margin % Comparison
For the Tools & Accessories subindustry, Lincoln Electric Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Operating Margin % falls into.
Lincoln Electric Holdings Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lincoln Electric Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (STU:LNE) has a Operating Margin % of 16.79% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lincoln Electric Holdings and its competitors. This is 18% above median its historical median of 14.28. Over the past decade, Lincoln Electric Holdings' Operating Margin % has ranged from 12.33 to 17.39. According to the industry distribution chart, Lincoln Electric Holdings ranks #372 out of 3038 companies in the Industrial Products industry, placing it in the top 12.2%.
Is Lincoln Electric Holdings' Operating Margin % too high?
Lincoln Electric Holdings' current Operating Margin % of 16.79% is 18% above median its 10-year median of 14.28. Over the past 10 years, this metric has ranged from a low of 12.33 to a high of 17.39. The Industrial Products industry median Operating Margin % is 6.53. Lincoln Electric Holdings' value of 16.79% is 157.1% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #372 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to SWK and RBC?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #372 out of 3038 companies for Operating Margin %. This places Lincoln Electric Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Lincoln Electric Holdings' value of 16.79% is 157.1% above this benchmark. Historically, Lincoln Electric Holdings' own Operating Margin % has ranged from 12.33 to 17.39 over the past decade. While the company's 10-year median is 14.28 vs. the industry median of 6.53, 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current Operating Margin % of 16.79% is 157.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current Operating Margin % is 16.79%, which is 18% above median its own 10-year median of 14.28. 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 (STU:LNE) is currently considered Modestly Overvalued. The stock's GF Value™ is €203.21, compared to a current price of €236.00 — trading 16.1% above its estimated fair value. The current Operating Margin % is 16.79%, which is 18% above median its 10-year median of 14.28 and 157.1% above the Industrial Products industry median of 6.53. Lincoln Electric Holdings' overall GF Score™ is 97/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Lincoln Electric Holdings (STU:LNE), the current Operating Margin % is 16.79% 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 (STU:LNE) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Electric Holdings stock appears to be overvalued.
The current stock price of €236.00 is trading 16.1% above its estimated GF Value™ of €203.21.
GuruFocus considers Lincoln Electric Holdings to be Modestly Overvalued.
Key valuation signals for STU:LNE:
Operating Margin %: 16.79% (18% above median its 10-year median of 14.28)
GF Value™: €203.21 vs. price of €236.00 (16.1% above fair value)
Industry Position: 157.1% above the Industrial Products median (#372 of 3038)
No single metric tells the full story. See the STU: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.
97GF Score
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