📊 AI Stock Rating — Summary

For the third quarter of 2025, LECO reported a revenue of $1.06 billion and a net income of $122.6 million, translating to an EPS of $2.23. The net margin was approximately 11.56%, indicating effective cost management. The company generated $205 million in free cash flow, supporting dividend payments and a robust share buyback program. Year-over-year revenue growth remains stable, reflecting the company's competitive position in its industry. Profitability is underscored by strong operating cash flow and prudent capital management, with free cash flow sufficiently covering dividends and share repurchases. LECO's leverage, with net debt of $1.03 billion against total equity of $1.41 billion, shows manageable debt levels. Dividends over the past four quarters total $3.04 per share, underlining a consistent shareholder return approach alongside significant buybacks. Analyst price targets suggest a potential upside, with consensus estimates around $272.5 compared to current valuations. LECO's strategic focus on operational efficiency and shareholder value has supported its financial health and market performance.

AI Score Breakdown

Revenue Growth — Score: 7/10

Revenue growth is stable, driven by a strong market position and consistent demand. The company shows resilience in maintaining its revenue stream.

Profitability — Score: 8/10

LECO demonstrates solid profitability with a net margin of 11.56%. EPS of $2.23 shows an effective cost structure and operational efficiency.

Cash Flow Quality — Score: 9/10

Free cash flow generation is strong at $205 million, comfortably supporting dividends and buybacks, indicating excellent liquidity management.

Leverage & Balance Sheet — Score: 7/10

The leverage is moderate with net debt of $1.03 billion. The balance sheet is robust, underpinned by strong equity and asset base.

Shareholder Returns — Score: 8/10

Consistent dividend payments and aggressive stock repurchases enhance shareholder value. Price targets from analysts indicate potential appreciation, implying strong future returns.

Analyst Sentiment & Valuation — Score: 7/10

Consensus price targets up to $285 suggest upside potential. Ratios will need to be monitored for shifts against sector peers as P/E and FCF yield are not provided.

⚠ AI-generated — informational only, not financial advice.