LINCOLN NATIONAL CORP (LNC) Stock Fundamental Analysis
NYSE:LNC - New York Stock Exchange, Inc. - US5341871094 - Common Stock - Currency: USD
LNC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. LNC has a medium profitability rating, but doesn't score so well on its financial health evaluation. LNC is not valued too expensively and it also shows a decent growth rate. Finally LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LNC had positive earnings in the past year.
In the past year LNC has reported a negative cash flow from operations.
In multiple years LNC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: LNC reported negative operating cash flow in multiple years.
1.2 Ratios
LNC has a worse Return On Assets (0.82%) than 65.03% of its industry peers.
Looking at the Return On Equity, with a value of 38.57%, LNC belongs to the top of the industry, outperforming 96.50% of the companies in the same industry.
LNC has a worse Return On Invested Capital (0.81%) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 38.57% | ||
| ROIC | 0.81% |
ROA(3y)-0.03%
ROA(5y)0.11%
ROE(3y)-5.83%
ROE(5y)-1.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LNC has a Profit Margin of 15.53%. This is in the better half of the industry: LNC outperforms 78.32% of its industry peers.
LNC's Profit Margin has improved in the last couple of years.
LNC's Operating Margin of 18.38% is fine compared to the rest of the industry. LNC outperforms 74.13% of its industry peers.
LNC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.38% | ||
| PM (TTM) | 15.53% | ||
| GM | N/A |
OM growth 3Y12.1%
OM growth 5Y19.11%
PM growth 3Y17.77%
PM growth 5Y24.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LNC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNC has less shares outstanding
The debt/assets ratio for LNC has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.71 indicates that LNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, LNC is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
LNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.16%, which is quite good.
LNC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.39% yearly.
LNC shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.65%.
LNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)19.16%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%31.72%
Revenue 1Y (TTM)47.65%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%135.28%
3.2 Future
Based on estimates for the next years, LNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.88% on average per year.
Based on estimates for the next years, LNC will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
EPS Next Y25.15%
EPS Next 2Y16.11%
EPS Next 3Y13.9%
EPS Next 5Y12.88%
Revenue Next Year2.54%
Revenue Next 2Y2.52%
Revenue Next 3Y2.67%
Revenue Next 5Y3.99%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.87, which indicates a rather cheap valuation of LNC.
82.52% of the companies in the same industry are more expensive than LNC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, LNC is valued rather cheaply.
A Price/Forward Earnings ratio of 3.89 indicates a rather cheap valuation of LNC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNC indicates a rather cheap valuation: LNC is cheaper than 82.52% of the companies listed in the same industry.
LNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 3.89 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as LNC's earnings are expected to grow with 13.90% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y16.11%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
LNC has a Yearly Dividend Yield of 6.04%, which is a nice return.
LNC's Dividend Yield is rather good when compared to the industry average which is at 3.32. LNC pays more dividend than 90.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, LNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
5.2 History
The dividend of LNC is nicely growing with an annual growth rate of 9.26%!
LNC has been paying a dividend for at least 10 years, so it has a reliable track record.
LNC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.26%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
12.48% of the earnings are spent on dividend by LNC. This is a low number and sustainable payout ratio.
The dividend of LNC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.48%
EPS Next 2Y16.11%
EPS Next 3Y13.9%
30.27
+0.24 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.9%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner Change12.2%
Market Cap5.16B
Analysts55.24
Price Target40.09 (32.44%)
Short Float %2.3%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
Yearly Dividend2.34
Dividend Growth(5Y)9.26%
DP12.48%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.92%
Min EPS beat(2)8.23%
Max EPS beat(2)25.62%
EPS beat(4)3
Avg EPS beat(4)-6.66%
Min EPS beat(4)-63.23%
Max EPS beat(4)25.62%
EPS beat(8)5
Avg EPS beat(8)-13.11%
EPS beat(12)5
Avg EPS beat(12)-15.34%
EPS beat(16)7
Avg EPS beat(16)-11.86%
Revenue beat(2)0
Avg Revenue beat(2)-7.01%
Min Revenue beat(2)-11.82%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-4.88%
Min Revenue beat(4)-11.82%
Max Revenue beat(4)-1.99%
Revenue beat(8)2
Avg Revenue beat(8)-10.73%
Revenue beat(12)5
Avg Revenue beat(12)-2.97%
Revenue beat(16)8
Avg Revenue beat(16)-1.38%
PT rev (1m)0.77%
PT rev (3m)7.38%
EPS NQ rev (1m)-5.16%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 3.89 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.62 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.22
EY20.55%
EPS(NY)7.78
Fwd EY25.72%
FCF(TTM)-11.78
FCFYN/A
OCF(TTM)-11.78
OCFYN/A
SpS120.52
BVpS48.53
TBVpS41.81
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 38.57% | ||
| ROCE | 0.99% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.82% | ||
| ROICexgc | 2.43% | ||
| OM | 18.38% | ||
| PM (TTM) | 15.53% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-0.03%
ROA(5y)0.11%
ROE(3y)-5.83%
ROE(5y)-1.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y18.6%
ROICexcg growth 5Y24.83%
ROICexc growth 3Y13.38%
ROICexc growth 5Y19.96%
OM growth 3Y12.1%
OM growth 5Y19.11%
PM growth 3Y17.77%
PM growth 5Y24.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.16%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%31.72%
EPS Next Y25.15%
EPS Next 2Y16.11%
EPS Next 3Y13.9%
EPS Next 5Y12.88%
Revenue 1Y (TTM)47.65%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%135.28%
Revenue Next Year2.54%
Revenue Next 2Y2.52%
Revenue Next 3Y2.67%
Revenue Next 5Y3.99%
EBIT growth 1Y669.38%
EBIT growth 3Y13.35%
EBIT growth 5Y23.3%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.23%
OCF growth 3YN/A
OCF growth 5YN/A