LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
USA - NASDAQ:LINC - US5335351004 - Common Stock
23.15 USD
-0.05 (-0.22%)
23.15 USD
0 (0%)
Overall LINC gets a fundamental rating of 4 out of 10. We evaluated LINC against 77 industry peers in the Diversified Consumer Services industry. LINC has an excellent profitability rating, but there are concerns on its financial health. LINC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LINC was profitable.
In the past year LINC had a positive cash flow from operations.
LINC had positive earnings in each of the past 5 years.
Each year in the past 5 years LINC had a positive operating cash flow.
1.2 Ratios
LINC has a Return On Assets of 3.19%. This is in the better half of the industry: LINC outperforms 63.64% of its industry peers.
LINC's Return On Equity of 7.91% is fine compared to the rest of the industry. LINC outperforms 64.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.09%, LINC is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LINC is significantly below the industry average of 9.48%.
The last Return On Invested Capital (4.09%) for LINC is above the 3 year average (3.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 7.91% | ||
| ROIC | 4.09% |
ROA(3y)4.32%
ROA(5y)7.36%
ROE(3y)9.16%
ROE(5y)16.33%
ROIC(3y)3.25%
ROIC(5y)5.24%
1.3 Margins
LINC's Profit Margin of 3.05% is in line compared to the rest of the industry. LINC outperforms 58.44% of its industry peers.
In the last couple of years the Profit Margin of LINC has grown nicely.
LINC has a Operating Margin (4.48%) which is in line with its industry peers.
LINC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.94%, LINC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
LINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.48% | ||
| PM (TTM) | 3.05% | ||
| GM | 59.94% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LINC is destroying value.
The number of shares outstanding for LINC has been increased compared to 1 year ago.
Compared to 5 years ago, LINC has more shares outstanding
The debt/assets ratio for LINC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.09 indicates that LINC is not in any danger for bankruptcy at the moment.
The Altman-Z score of LINC (3.09) is better than 74.03% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that LINC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, LINC perfoms like the industry average, outperforming 55.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.09 |
ROIC/WACC0.48
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.90 indicates that LINC may have some problems paying its short term obligations.
With a Current ratio value of 0.90, LINC is not doing good in the industry: 62.34% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that LINC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, LINC is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.92% over the past year.
LINC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 60.55% yearly.
LINC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.53%.
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)76.92%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%350%
Revenue 1Y (TTM)14.53%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.18%
3.2 Future
The Earnings Per Share is expected to grow by 47.55% on average over the next years. This is a very strong growth
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 Y62.56%
EPS Next 2Y47.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.49%
Revenue Next 2Y11.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LINC is valuated quite expensively with a Price/Earnings ratio of 50.33.
The rest of the industry has a similar Price/Earnings ratio as LINC.
LINC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
The Price/Forward Earnings ratio is 33.23, which means the current valuation is very expensive for LINC.
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 22.92, LINC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.33 | ||
| Fwd PE | 33.23 |
4.2 Price Multiples
LINC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LINC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LINC's earnings are expected to grow with 47.55% in the coming years.
PEG (NY)0.8
PEG (5Y)0.83
EPS Next 2Y47.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LINC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.15
-0.05 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners81.71%
Inst Owner Change-0.17%
Ins Owners6.49%
Ins Owner Change-0.55%
Market Cap732.00M
Revenue(TTM)467.76M
Net Income(TTM)14.29M
Analysts83.33
Price Target26.69 (15.29%)
Short Float %4.2%
Short Ratio3.86
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)379.23%
Min EPS beat(2)238.41%
Max EPS beat(2)520.05%
EPS beat(4)3
Avg EPS beat(4)197.17%
Min EPS beat(4)-7.56%
Max EPS beat(4)520.05%
EPS beat(8)5
Avg EPS beat(8)100.79%
EPS beat(12)7
Avg EPS beat(12)439.26%
EPS beat(16)9
Avg EPS beat(16)320.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)0.58%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)5.58%
Revenue beat(8)7
Avg Revenue beat(8)1.85%
Revenue beat(12)11
Avg Revenue beat(12)1.74%
Revenue beat(16)12
Avg Revenue beat(16)1.29%
PT rev (1m)0%
PT rev (3m)1.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50.2%
EPS NY rev (1m)6.62%
EPS NY rev (3m)16.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.33 | ||
| Fwd PE | 33.23 | ||
| P/S | 1.56 | ||
| P/FCF | N/A | ||
| P/OCF | 26.31 | ||
| P/B | 4.05 | ||
| P/tB | 4.31 | ||
| EV/EBITDA | 21.06 |
EPS(TTM)0.46
EY1.99%
EPS(NY)0.7
Fwd EY3.01%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)0.88
OCFY3.8%
SpS14.79
BVpS5.71
TBVpS5.37
PEG (NY)0.8
PEG (5Y)0.83
Graham Number7.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 7.91% | ||
| ROCE | 5.84% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.43% | ||
| OM | 4.48% | ||
| PM (TTM) | 3.05% | ||
| GM | 59.94% | ||
| 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%
ROICexgc growth 3Y-36.91%
ROICexgc 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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 597.21% | ||
| Cap/Sales | 19.33% | ||
| Interest Coverage | 7.82 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.09 |
F-Score5
WACC8.62%
ROIC/WACC0.48
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)76.92%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%350%
EPS Next Y62.56%
EPS Next 2Y47.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.53%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.18%
Revenue Next Year14.49%
Revenue Next 2Y11.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y103.57%
EBIT growth 3Y-19.21%
EBIT growth 5Y25.82%
EBIT Next Year295.39%
EBIT Next 3Y77.73%
EBIT Next 5YN/A
FCF growth 1Y-1351.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.64%
OCF growth 3Y2.27%
OCF growth 5Y96.51%
LINCOLN EDUCATIONAL SERVICES / LINC FAQ
Can you provide the ChartMill fundamental rating for LINCOLN EDUCATIONAL SERVICES?
ChartMill assigns a fundamental rating of 4 / 10 to LINC.
What is the valuation status for LINC stock?
ChartMill assigns a valuation rating of 3 / 10 to LINCOLN EDUCATIONAL SERVICES (LINC). This can be considered as Overvalued.
Can you provide the profitability details for LINCOLN EDUCATIONAL SERVICES?
LINCOLN EDUCATIONAL SERVICES (LINC) has a profitability rating of 7 / 10.
What is the valuation of LINCOLN EDUCATIONAL SERVICES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LINCOLN EDUCATIONAL SERVICES (LINC) is 50.33 and the Price/Book (PB) ratio is 4.05.
What is the expected EPS growth for LINCOLN EDUCATIONAL SERVICES (LINC) stock?
The Earnings per Share (EPS) of LINCOLN EDUCATIONAL SERVICES (LINC) is expected to grow by 62.56% in the next year.