LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
NASDAQ:LINC - Nasdaq - US5335351004 - Common Stock - Currency: USD
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. LINC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
LINC had a positive operating cash flow in the past year.
In the past 5 years LINC has always been profitable.
In the past 5 years LINC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.44%, LINC is doing good in the industry, outperforming 60.94% of the companies in the same industry.
LINC's Return On Equity of 5.79% is in line compared to the rest of the industry. LINC outperforms 57.81% of its industry peers.
LINC has a Return On Invested Capital (2.56%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LINC is significantly below the industry average of 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 5.79% | ||
| ROIC | 2.56% |
ROA(3y)6.51%
ROA(5y)7.11%
ROE(3y)13.46%
ROE(5y)15.95%
ROIC(3y)5.42%
ROIC(5y)5.47%
1.3 Margins
Looking at the Profit Margin, with a value of 2.33%, LINC is in line with its industry, outperforming 57.81% of the companies in the same industry.
In the last couple of years the Profit Margin of LINC has declined.
With a Operating Margin value of 2.68%, LINC perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Operating Margin of LINC has declined.
Looking at the Gross Margin, with a value of 58.02%, LINC is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Gross Margin of LINC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.68% | ||
| PM (TTM) | 2.33% | ||
| GM | 58.02% |
OM growth 3Y-36.85%
OM growth 5YN/A
PM growth 3Y-18.18%
PM growth 5YN/A
GM growth 3Y-0.71%
GM growth 5Y1.74%
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.
Compared to 1 year ago, LINC has more shares outstanding
The number of shares outstanding for LINC has been increased compared to 5 years ago.
LINC has a worse debt/assets ratio than last year.
2.2 Solvency
LINC has an Altman-Z score of 2.94. This is not the best score and indicates that LINC is in the grey zone with still only limited risk for bankruptcy at the moment.
LINC's Altman-Z score of 2.94 is fine compared to the rest of the industry. LINC outperforms 75.00% of its industry peers.
LINC has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
LINC's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. LINC outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.94 |
ROIC/WACC0.24
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.57 indicates that LINC should not have too much problems paying its short term obligations.
LINC has a Current ratio of 1.57. This is comparable to the rest of the industry: LINC outperforms 59.38% of its industry peers.
A Quick Ratio of 1.53 indicates that LINC should not have too much problems paying its short term obligations.
LINC has a Quick ratio of 1.53. This is in the better half of the industry: LINC outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for LINC have decreased strongly by -64.84% in the last year.
The Earnings Per Share has been growing by 37.61% on average over the past years. This is a very strong growth
Looking at the last year, LINC shows a quite strong growth in Revenue. The Revenue has grown by 15.22% in the last year.
Measured over the past years, LINC shows a small growth in Revenue. The Revenue has been growing by 7.51% on average per year.
EPS 1Y (TTM)-64.84%
EPS 3Y37.61%
EPS 5YN/A
EPS Q2Q%85.71%
Revenue 1Y (TTM)15.22%
Revenue growth 3Y8.86%
Revenue growth 5Y7.51%
Sales Q2Q%14.85%
3.2 Future
LINC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.03% yearly.
The Revenue is expected to grow by 9.84% on average over the next years. This is quite good.
EPS Next Y-60.47%
EPS Next 2Y-22.23%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue Next Year16.28%
Revenue Next 2Y12.41%
Revenue Next 3Y10.83%
Revenue Next 5Y9.84%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 50.28 indicates a quite expensive valuation of LINC.
Compared to the rest of the industry, the Price/Earnings ratio of LINC is on the same level as its industry peers.
LINC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 30.93, the valuation of LINC can be described as expensive.
LINC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LINC to the average of the S&P500 Index (22.68), we can say LINC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.28 | ||
| Fwd PE | 30.93 |
4.2 Price Multiples
LINC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.15 |
4.3 Compensation for Growth
LINC's earnings are expected to grow with 14.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.23%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
LINC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.09
-1.54 (-8.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change1.3%
Ins Owners5.85%
Ins Owner Change-2.76%
Market Cap506.51M
Analysts84.44
Price Target20.4 (26.79%)
Short Float %0.93%
Short Ratio1.97
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)1
Avg EPS beat(2)-78.09%
Min EPS beat(2)-193.97%
Max EPS beat(2)37.78%
EPS beat(4)2
Avg EPS beat(4)-23.52%
Min EPS beat(4)-193.97%
Max EPS beat(4)83.66%
EPS beat(8)5
Avg EPS beat(8)565.86%
EPS beat(12)6
Avg EPS beat(12)364.24%
EPS beat(16)10
Avg EPS beat(16)289.33%
Revenue beat(2)2
Avg Revenue beat(2)0.78%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.26%
Revenue beat(4)4
Avg Revenue beat(4)1.63%
Min Revenue beat(4)0.3%
Max Revenue beat(4)4.48%
Revenue beat(8)8
Avg Revenue beat(8)1.79%
Revenue beat(12)9
Avg Revenue beat(12)0.85%
Revenue beat(16)12
Avg Revenue beat(16)1.52%
PT rev (1m)0%
PT rev (3m)25%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)22.81%
EPS NY rev (1m)1.78%
EPS NY rev (3m)13.96%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.28 | ||
| Fwd PE | 30.93 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 24.16 | ||
| P/B | 2.98 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 23.15 |
EPS(TTM)0.32
EY1.99%
EPS(NY)0.52
Fwd EY3.23%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.67
OCFY4.14%
SpS13.44
BVpS5.4
TBVpS5.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 5.79% | ||
| ROCE | 3.42% | ||
| ROIC | 2.56% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 3.19% | ||
| OM | 2.68% | ||
| PM (TTM) | 2.33% | ||
| GM | 58.02% | ||
| FCFM | N/A |
ROA(3y)6.51%
ROA(5y)7.11%
ROE(3y)13.46%
ROE(5y)15.95%
ROIC(3y)5.42%
ROIC(5y)5.47%
ROICexc(3y)7.99%
ROICexc(5y)7.59%
ROICexgc(3y)8.78%
ROICexgc(5y)8.4%
ROCE(3y)7.24%
ROCE(5y)7.31%
ROICexcg growth 3Y-39.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-38.47%
ROICexc growth 5YN/A
OM growth 3Y-36.85%
OM growth 5YN/A
PM growth 3Y-18.18%
PM growth 5YN/A
GM growth 3Y-0.71%
GM growth 5Y1.74%
F-Score4
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 380.54% | ||
| Cap/Sales | 10.42% | ||
| Interest Coverage | 6.5 | ||
| Cash Conversion | 91.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.94 |
F-Score4
WACC10.47%
ROIC/WACC0.24
Cap/Depr(3y)282.45%
Cap/Depr(5y)197.94%
Cap/Sales(3y)5.2%
Cap/Sales(5y)3.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.84%
EPS 3Y37.61%
EPS 5YN/A
EPS Q2Q%85.71%
EPS Next Y-60.47%
EPS Next 2Y-22.23%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.22%
Revenue growth 3Y8.86%
Revenue growth 5Y7.51%
Sales Q2Q%14.85%
Revenue Next Year16.28%
Revenue Next 2Y12.41%
Revenue Next 3Y10.83%
Revenue Next 5Y9.84%
EBIT growth 1Y12.09%
EBIT growth 3Y-31.26%
EBIT growth 5YN/A
EBIT Next Year21.91%
EBIT Next 3Y27.36%
EBIT Next 5Y26.67%
FCF growth 1Y-2669.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.54%
OCF growth 3Y2.84%
OCF growth 5YN/A