Lincoln Electric HoldingsLECO -0.29%97 3-Year ROIIC % is 15.06 as of Dec. 2025, which is 32% below its 10-year median of 22.22. GuruFocus rates LECO with a GF Score™ of 97/100 and a GF Value™ of $237.63 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,936 Industrial Products companies, Lincoln Electric Holdings ranks better than 69.35% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Lincoln Electric Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 15.06%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lincoln Electric Holdings's 3-Year ROIIC % or its related term are showing as below:
LECO's 3-Year ROIIC % is ranked better than 69.35% of 2936
companies
in the Industrial Products industry
Industry Median: 3.425
vs LECO: 15.06
Lincoln Electric Holdings (NAS:LECO) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Lincoln Electric Holdings 3-Year ROIIC % Related Terms
Lincoln Electric Holdings 3-Year ROIIC % 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.
For the Tools & Accessories subindustry, Lincoln Electric Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Lincoln Electric Holdings (LECO) has a 3-Year ROIIC % of 15.06 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lincoln Electric Holdings and its competitors. This is 32% below median its historical median of 22.22. According to the industry distribution chart, Lincoln Electric Holdings ranks #900 out of 2936 companies in the Industrial Products industry, placing it in the top 30.7%.
Is Lincoln Electric Holdings' 3-Year ROIIC % too high?
Lincoln Electric Holdings' current 3-Year ROIIC % of 15.06 is 32% below median its 10-year median of 22.22. The Industrial Products industry median 3-Year ROIIC % is 3.43. Lincoln Electric Holdings' value of 15.06 is 339.7% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #900 out of 2936 companies in the Industrial Products industry, which is above the industry midpoint. 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' 3-Year ROIIC % compare to SWK and TKR?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #900 out of 2936 companies for 3-Year ROIIC %. This puts Lincoln Electric Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 3.43. Lincoln Electric Holdings' value of 15.06 is 339.7% above this benchmark. While the company's 10-year median is 22.22 vs. the industry median of 3.43, 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.43, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current 3-Year ROIIC % of 15.06 is 339.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current 3-Year ROIIC % is 15.06, which is 32% below median its own 10-year median of 22.22. 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 $247.03 — trading 4% above its estimated fair value. The current 3-Year ROIIC % is 15.06, which is 32% below median its 10-year median of 22.22 and 339.7% above the Industrial Products industry median of 3.43. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current 3-Year ROIIC % is 15.06 as of Dec. 2025. 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 $247.03 is trading 4% above its estimated GF Value™ of $237.63.
GuruFocus considers Lincoln Electric Holdings to be Fairly Valued.
Key valuation signals for LECO:
3-Year ROIIC %: 15.06 (32% below median its 10-year median of 22.22)
GF Value™: $237.63 vs. price of $247.03 (4% above fair value)
Industry Position: 339.7% above the Industrial Products median (#900 of 2936)
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
Get the complete analysis for LECO
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LECO has been successfully added to your 
