Is LINCOLN ELECTRIC HOLDINGS INC (LECO) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.8% / 30% | 2.6% / 30% | 3.4% / 30% | 1.38% / 5% | ✓ HALAL |
| DJIM | 8.8% / 33% | 2.6% / 33% | 3.4% / 33% | 1.38% / 5% | ✓ HALAL |
| MSCI | 35.8% / 33% | 10.7% / 33% | 13.7% / 33% | 1.38% / 5% | ✗ NOT HALAL |
| S&P | 8.8% / 33% | 2.6% / 33% | 3.4% / 33% | 1.38% / 5% | ✓ HALAL |
| FTSE | 35.8% / 33% | 10.7% / 33% | 13.7% / 50% | 1.38% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 36.3% | |
| Operating Margin | 17.0% | |
| Net Margin | 12.3% | |
| Return on Equity (ROE) | 37.2% | |
| Return on Assets (ROA) | 12.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $661M |
| Free Cash Flow | $534M |
| Total Debt | $1.3B |
| Debt-to-Equity | 91.7 |
| Current Ratio | 1.8 |
| Total Assets | $3.8B |
Price & Trading
| Last Close | $251.46 |
| 50-Day MA | $271.47 |
| 200-Day MA | $243.17 |
| Avg Volume | 350K |
| Beta | 1.3 |
|
52-Week Range
$161.11
| |
About LINCOLN ELECTRIC HOLDINGS INC (LECO)
Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products in the United States and internationally. It operates in three segments: Americas Welding, International Welding, and The Harris Products Group. The company offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; and a portfolio of automated solutions and system integration services for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business. It also provides mobile power solutions, including vehicle-mounted compressors, generators, welders, hydraulics, charger/boosters, and electrified power equipment; automated welding system and solutions; and specialty welding consumables, wear plates, and maintenance and repair services for alloy and wear-resistant products, as well as develops and integrates autonomous guided vehicles and mobile robots, custom assembly and test systems, and proprietary manufacturing execution system software. The company serves general fabrication, oil and gas, power generation, process, automotive and transportation, and construction and infrastructure industries, as well as heavy fabrication, ship building, and maintenance and repair markets. It sells its products directly to users of welding products, including OEMs, manufacturers, and integrators, as well as through industrial distributors, retailers, and agents. Lincoln Electric Holdings, Inc. was founded in 1895 and is headquartered in Cleveland, Ohio.
Purification Calculator
As a halal stock with 1.38% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is LINCOLN ELECTRIC HOLDINGS INC (LECO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LINCOLN ELECTRIC HOLDINGS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is LINCOLN ELECTRIC HOLDINGS INC's debt ratio?
LINCOLN ELECTRIC HOLDINGS INC's debt ratio is 8.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 35.8%.
Does LINCOLN ELECTRIC HOLDINGS INC require dividend purification?
Yes, LINCOLN ELECTRIC HOLDINGS INC has an impermissible income ratio of 1.38%, which means 1.38% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are LINCOLN ELECTRIC HOLDINGS INC's key financial metrics?
LINCOLN ELECTRIC HOLDINGS INC has a market capitalization of $13.6B, trailing P/E ratio of 26.6, and revenue of $4.2B. The company maintains a gross margin of 36.3% and a net margin of 12.3%. Return on equity stands at 37.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.