Lincoln Electric HoldingsLECO -0.57%97 ROC (Joel Greenblatt) % is 54.34% as of Mar. 2026, which is 7% above its 10-year median of 50.55. GuruFocus rates LECO with a GF Scoreâ„¢ of 97/100 and a GF Valueâ„¢ of $237.63 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,058 Industrial Products companies, Lincoln Electric Holdings ranks better than 91.5% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Lincoln Electric Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 54.34%.
The historical rank and industry rank for Lincoln Electric Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
LECO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 33.5 Med: 50.55 Max: 64.47
Current: 59.97
During the past 13 years, Lincoln Electric Holdings's highest ROC (Joel Greenblatt) % was 64.47%. The lowest was 33.50%. And the median was 50.55%.
LECO's ROC (Joel Greenblatt) % is ranked better than 91.5% of 3058
companies
in the Industrial Products industry
Industry Median: 11.7
vs LECO: 59.97
Lincoln Electric Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 12.10% per year.
Lincoln Electric Holdings (NAS:LECO) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Lincoln Electric Holdings ROC (Joel Greenblatt) % Related Terms
Lincoln Electric Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Lincoln Electric Holdings's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
LECO vs SWK, TKR, RBC: ROC (Joel Greenblatt) % Comparison
For the Tools & Accessories subindustry, Lincoln Electric Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's ROC (Joel Greenblatt) % falls into.
Lincoln Electric Holdings ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 54.34% mean?
Lincoln Electric Holdings (LECO) has a ROC (Joel Greenblatt) % of 54.34% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Lincoln Electric Holdings and its competitors. This is near median its historical median of 50.55. Over the past decade, Lincoln Electric Holdings' ROC (Joel Greenblatt) % has ranged from 33.50 to 64.47. According to the industry distribution chart, Lincoln Electric Holdings ranks #260 out of 3058 companies in the Industrial Products industry, placing it in the top 8.5%.
Is Lincoln Electric Holdings' ROC (Joel Greenblatt) % too high?
Lincoln Electric Holdings' current ROC (Joel Greenblatt) % of 54.34% is near median its 10-year median of 50.55. Over the past 10 years, this metric has ranged from a low of 33.50 to a high of 64.47. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.70. Lincoln Electric Holdings' value of 54.34% is 364.4% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #260 out of 3058 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' ROC (Joel Greenblatt) % compare to SWK and TKR?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #260 out of 3058 companies for ROC (Joel Greenblatt) %. This places Lincoln Electric Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.70. Lincoln Electric Holdings' value of 54.34% is 364.4% above this benchmark. Historically, Lincoln Electric Holdings' own ROC (Joel Greenblatt) % has ranged from 33.50 to 64.47 over the past decade. While the company's 10-year median is 50.55 vs. the industry median of 11.70, 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.70, based on 3,058 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current ROC (Joel Greenblatt) % of 54.34% is 364.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current ROC (Joel Greenblatt) % is 54.34%, which is near median its own 10-year median of 50.55. 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 $237.63, compared to a current price of $246.35 — trading 3.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 54.34%, which is near median its 10-year median of 50.55 and 364.4% above the Industrial Products industry median of 11.70. Lincoln Electric Holdings' overall GF Score™ is 97/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current ROC (Joel Greenblatt) % is 54.34% 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 $246.35 is trading 3.7% above its estimated GF Value™ of $237.63.
GuruFocus considers Lincoln Electric Holdings to be Fairly Valued.
Key valuation signals for LECO:
ROC (Joel Greenblatt) %: 54.34% (near median its 10-year median of 50.55)
GF Value™: $237.63 vs. price of $246.35 (3.7% above fair value)
Industry Position: 364.4% above the Industrial Products median (#260 of 3058)
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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