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LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis

NASDAQ:LINC - Nasdaq - US5335351004 - Common Stock - Currency: USD

22.65  -0.59 (-2.54%)

After market: 22.65 0 (0%)

Fundamental Rating

4

LINC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. While LINC is still in line with the averages on profitability rating, there are concerns on its financial health. LINC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

LINC had positive earnings in the past year.
In the past year LINC had a positive cash flow from operations.
In the past 5 years LINC has always been profitable.
In the past 5 years LINC always reported a positive cash flow from operatings.
LINC Yearly Net Income VS EBIT VS OCF VS FCFLINC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M

1.2 Ratios

With a Return On Assets value of 2.82%, LINC perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
LINC's Return On Equity of 6.78% is fine compared to the rest of the industry. LINC outperforms 60.56% of its industry peers.
The Return On Invested Capital of LINC (3.63%) is better than 64.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LINC is significantly below the industry average of 10.64%.
The 3 year average ROIC (3.25%) for LINC is below the current ROIC(3.63%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.82%
ROE 6.78%
ROIC 3.63%
ROA(3y)4.32%
ROA(5y)7.36%
ROE(3y)9.16%
ROE(5y)16.33%
ROIC(3y)3.25%
ROIC(5y)5.24%
LINC Yearly ROA, ROE, ROICLINC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

Looking at the Profit Margin, with a value of 2.65%, LINC is in line with its industry, outperforming 53.52% of the companies in the same industry.
In the last couple of years the Profit Margin of LINC has grown nicely.
LINC has a Operating Margin (3.93%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LINC has grown nicely.
With a decent Gross Margin value of 59.02%, LINC is doing good in the industry, outperforming 74.65% of the companies in the same industry.
In the last couple of years the Gross Margin of LINC has remained more or less at the same level.
Industry RankSector Rank
OM 3.93%
PM (TTM) 2.65%
GM 59.02%
OM growth 3Y-26.21%
OM growth 5Y14.38%
PM growth 3Y-33.9%
PM growth 5Y25.16%
GM growth 3Y0.07%
GM growth 5Y1.38%
LINC Yearly Profit, Operating, Gross MarginsLINC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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3

2. Health

2.1 Basic Checks

LINC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LINC has been increased compared to 1 year ago.
LINC has more shares outstanding than it did 5 years ago.
LINC has a worse debt/assets ratio than last year.
LINC Yearly Shares OutstandingLINC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
LINC Yearly Total Debt VS Total AssetsLINC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

LINC has an Altman-Z score of 3.19. This indicates that LINC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LINC (3.19) is better than 70.42% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that LINC is not too dependend on debt financing.
The Debt to Equity ratio of LINC (0.17) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Altman-Z 3.19
ROIC/WACC0.41
WACC8.88%
LINC Yearly LT Debt VS Equity VS FCFLINC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

2.3 Liquidity

A Current Ratio of 1.04 indicates that LINC should not have too much problems paying its short term obligations.
The Current ratio of LINC (1.04) is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that LINC should not have too much problems paying its short term obligations.
The Quick ratio of LINC (1.01) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.01
LINC Yearly Current Assets VS Current LiabilitesLINC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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5

3. Growth

3.1 Past

The earnings per share for LINC have decreased strongly by -54.12% in the last year.
The Earnings Per Share has been growing by 60.55% on average over the past years. This is a very strong growth
LINC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.25%.
Measured over the past years, LINC shows a quite strong growth in Revenue. The Revenue has been growing by 10.00% on average per year.
EPS 1Y (TTM)-54.12%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%700%
Revenue 1Y (TTM)15.25%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.68%

3.2 Future

Based on estimates for the next years, LINC will show a very strong growth in Earnings Per Share. The EPS will grow by 51.81% on average per year.
Based on estimates for the next years, LINC will show a small growth in Revenue. The Revenue will grow by 7.77% on average per year.
EPS Next Y39.45%
EPS Next 2Y51.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y10.79%
Revenue Next 3Y7.77%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LINC Yearly Revenue VS EstimatesLINC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
LINC Yearly EPS VS EstimatesLINC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1

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2

4. Valuation

4.1 Price/Earnings Ratio

LINC is valuated quite expensively with a Price/Earnings ratio of 58.08.
LINC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LINC to the average of the S&P500 Index (27.28), we can say LINC is valued expensively.
Based on the Price/Forward Earnings ratio of 30.71, the valuation of LINC can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LINC.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, LINC is valued a bit more expensive.
Industry RankSector Rank
PE 58.08
Fwd PE 30.71
LINC Price Earnings VS Forward Price EarningsLINC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

LINC's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 22.7
LINC Per share dataLINC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LINC may justify a higher PE ratio.
A more expensive valuation may be justified as LINC's earnings are expected to grow with 51.81% in the coming years.
PEG (NY)1.47
PEG (5Y)0.96
EPS Next 2Y51.81%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

LINC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LINCOLN EDUCATIONAL SERVICES

NASDAQ:LINC (7/2/2025, 8:00:02 PM)

After market: 22.65 0 (0%)

22.65

-0.59 (-2.54%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-12 2025-05-12/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners74.1%
Inst Owner Change5.96%
Ins Owners6.52%
Ins Owner Change1.64%
Market Cap715.51M
Analysts83.64
Price Target26.35 (16.34%)
Short Float %3.05%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)115.42%
Min EPS beat(2)-7.56%
Max EPS beat(2)238.41%
EPS beat(4)2
Avg EPS beat(4)18.67%
Min EPS beat(4)-193.97%
Max EPS beat(4)238.41%
EPS beat(8)5
Avg EPS beat(8)607.11%
EPS beat(12)6
Avg EPS beat(12)387.59%
EPS beat(16)9
Avg EPS beat(16)293.52%
Revenue beat(2)2
Avg Revenue beat(2)3.08%
Min Revenue beat(2)0.58%
Max Revenue beat(2)5.58%
Revenue beat(4)4
Avg Revenue beat(4)1.93%
Min Revenue beat(4)0.3%
Max Revenue beat(4)5.58%
Revenue beat(8)8
Avg Revenue beat(8)2.27%
Revenue beat(12)11
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)1.8%
PT rev (1m)14.81%
PT rev (3m)15.67%
EPS NQ rev (1m)40.01%
EPS NQ rev (3m)36%
EPS NY rev (1m)17.85%
EPS NY rev (3m)28.68%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)3.4%
Valuation
Industry RankSector Rank
PE 58.08
Fwd PE 30.71
P/S 1.58
P/FCF N/A
P/OCF 19.95
P/B 4.02
P/tB 4.28
EV/EBITDA 22.7
EPS(TTM)0.39
EY1.72%
EPS(NY)0.74
Fwd EY3.26%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)1.14
OCFY5.01%
SpS14.38
BVpS5.63
TBVpS5.29
PEG (NY)1.47
PEG (5Y)0.96
Profitability
Industry RankSector Rank
ROA 2.82%
ROE 6.78%
ROCE 5.18%
ROIC 3.63%
ROICexc 3.96%
ROICexgc 4.1%
OM 3.93%
PM (TTM) 2.65%
GM 59.02%
FCFM N/A
ROA(3y)4.32%
ROA(5y)7.36%
ROE(3y)9.16%
ROE(5y)16.33%
ROIC(3y)3.25%
ROIC(5y)5.24%
ROICexc(3y)4.26%
ROICexc(5y)7.24%
ROICexgc(3y)4.56%
ROICexgc(5y)7.95%
ROCE(3y)4.64%
ROCE(5y)7.48%
ROICexcg growth 3Y-36.91%
ROICexcg growth 5Y2.57%
ROICexc growth 3Y-35.5%
ROICexc growth 5Y4.6%
OM growth 3Y-26.21%
OM growth 5Y14.38%
PM growth 3Y-33.9%
PM growth 5Y25.16%
GM growth 3Y0.07%
GM growth 5Y1.38%
F-Score5
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Debt/EBITDA 0.96
Cap/Depr 545.93%
Cap/Sales 16.53%
Interest Coverage 6.01
Cash Conversion 113.51%
Profit Quality N/A
Current Ratio 1.04
Quick Ratio 1.01
Altman-Z 3.19
F-Score5
WACC8.88%
ROIC/WACC0.41
Cap/Depr(3y)393.54%
Cap/Depr(5y)272.39%
Cap/Sales(3y)8.76%
Cap/Sales(5y)6.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.12%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%700%
EPS Next Y39.45%
EPS Next 2Y51.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.25%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.68%
Revenue Next Year13.56%
Revenue Next 2Y10.79%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y134.26%
EBIT growth 3Y-19.21%
EBIT growth 5Y25.82%
EBIT Next Year266.81%
EBIT Next 3Y77.73%
EBIT Next 5YN/A
FCF growth 1Y-1080.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y137.5%
OCF growth 3Y2.27%
OCF growth 5Y96.51%