Lincoln Electric HoldingsLECO +0.13%98 Return-on-Tangible-Equity is 113.94% as of Mar. 2026, which is 35% above its 10-year median of 84.33. GuruFocus rates LECO with a GF Score™ of 98/100 and a GF Value™ of $237.37 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,971 Industrial Products companies, Lincoln Electric Holdings ranks better than 96.36% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lincoln Electric Holdings's annualized net income for the quarter that ended in Mar. 2026 was $546 Mil. Lincoln Electric Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $479 Mil. Therefore, Lincoln Electric Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 113.94%.
The historical rank and industry rank for Lincoln Electric Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LECO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 40.79 Med: 84.33 Max: 209.59
Current: 105.12
During the past 13 years, Lincoln Electric Holdings's highest Return-on-Tangible-Equity was 209.59%. The lowest was 40.79%. And the median was 84.33%.
LECO's Return-on-Tangible-Equity is ranked better than 96.36% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs LECO: 105.12
Lincoln Electric Holdings (NAS:LECO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lincoln Electric Holdings Return-on-Tangible-Equity Related Terms
Lincoln Electric Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lincoln Electric Holdings's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
LECO vs SWK, TKR, RBC: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, Lincoln Electric Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 113.94% mean?
Lincoln Electric Holdings (LECO) has a Return-on-Tangible-Equity of 113.94% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lincoln Electric Holdings and its competitors. This is 35% above median its historical median of 84.33. Over the past decade, Lincoln Electric Holdings' Return-on-Tangible-Equity has ranged from 40.79 to 209.59. According to the industry distribution chart, Lincoln Electric Holdings ranks #108 out of 2971 companies in the Industrial Products industry, placing it in the top 3.6%.
Is Lincoln Electric Holdings' Return-on-Tangible-Equity too high?
Lincoln Electric Holdings' current Return-on-Tangible-Equity of 113.94% is 35% above median its 10-year median of 84.33. Over the past 10 years, this metric has ranged from a low of 40.79 to a high of 209.59. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Lincoln Electric Holdings' value of 113.94% is 1595.5% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #108 out of 2971 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 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' Return-on-Tangible-Equity compare to SWK and TKR?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #108 out of 2971 companies for Return-on-Tangible-Equity. This places Lincoln Electric Holdings in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Lincoln Electric Holdings' value of 113.94% is 1595.5% above this benchmark. Historically, Lincoln Electric Holdings' own Return-on-Tangible-Equity has ranged from 40.79 to 209.59 over the past decade. While the company's 10-year median is 84.33 vs. the industry median of 6.72, 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current Return-on-Tangible-Equity of 113.94% is 1595.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current Return-on-Tangible-Equity is 113.94%, which is 35% above median its own 10-year median of 84.33. 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 Fairly Valued. The stock's GF Value™ is $237.37, compared to a current price of $258.33 — trading 8.8% above its estimated fair value. The current Return-on-Tangible-Equity is 113.94%, which is 35% above median its 10-year median of 84.33 and 1595.5% above the Industrial Products industry median of 6.72. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current Return-on-Tangible-Equity is 113.94% 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 $258.33 is trading 8.8% above its estimated GF Value™ of $237.37.
GuruFocus considers Lincoln Electric Holdings to be Fairly Valued.
Key valuation signals for LECO:
Return-on-Tangible-Equity: 113.94% (35% above median its 10-year median of 84.33)
GF Value™: $237.37 vs. price of $258.33 (8.8% above fair value)
Industry Position: 1595.5% above the Industrial Products median (#108 of 2971)
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.
98GF Score
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