Is LECO a high-quality business?

AlphaMadera's AlphaQuality grade scores Lincoln Electric Holdings, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how LECO compares to a Buffett-style quality bar.

What is Lincoln Electric Holdings, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to LECO based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes LECO a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

LECO - Lincoln Electric Holdings, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $301.71 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

A- 83.6 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

A- 83.1

5yr Avg ROIC 18.7% 89/100
Operating Margin Trend +0.48 pp/yr 70/100

Capital Efficiency

Weight: 15%

A+ 95.1

5yr Avg ROE 31.0% 100/100
5yr Share-Count CAGR -1.8% 86/100

Growth Quality

Weight: 25%

A- 80.3

5yr Revenue CAGR 6.9% 70/100
5yr EPS CAGR 19.3% 94/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

A- 83.9

5yr FCF Margin 11.2% 73/100
5yr FCF/NI Conversion 0.97x 97/100

Balance Sheet

Weight: 10%

A 88.1

Net Debt / EBITDA 1.21x 82/100
Interest Coverage (EBIT/Int) 11.69x 88/100
Altman Z-Score 5.63 100/100

Stability

Weight: 5%

C 56.9

EPS Volatility (σ/μ) 0.50 30/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 2 added; 2 trimmed.

Holders: 4
Avg Δ position: -19.8%
New buys: 0
Full exits: 0

Dalio decreased -74%
Cooperman decreased -19%
Greenblatt increased +10%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.