LINCOLN NATIONAL CORP (LNC)
US5341871094 - Common Stock
We assign a fundamental rating of 3 out of 10 to LNC. LNC was compared to 140 industry peers in the Insurance industry. LNC has a bad profitability rating. Also its financial health evaluation is rather negative. LNC has a decent growth rate and is not valued too expensively. LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LNC had positive earnings in the past year.
LNC had a negative operating cash flow in the past year.
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 Return On Assets of 0.07%. This is in the lower half of the industry: LNC underperforms 73.38% of its industry peers.
Looking at the Return On Equity, with a value of 2.97%, LNC is doing worse than 71.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.14%, LNC is doing worse than 67.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 2.97% | ||
| ROIC | 0.14% |
ROA(3y)-0.14%
ROA(5y)0%
ROE(3y)-15.65%
ROE(5y)-8.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LNC's Profit Margin of 1.80% is on the low side compared to the rest of the industry. LNC is outperformed by 69.78% of its industry peers.
LNC has a Operating Margin of 4.65%. This is in the lower half of the industry: LNC underperforms 69.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 1.8% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, LNC has more shares outstanding
LNC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNC has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.65 indicates that LNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, LNC is doing worse than 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| 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
The Earnings Per Share has grown by an impressive 21.52% over the past year.
The Earnings Per Share has been decreasing by -9.25% on average over the past years.
The Revenue for LNC has decreased by -17.03% in the past year. This is quite bad
LNC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.31% yearly.
EPS 1Y (TTM)21.52%
EPS 3Y6.93%
EPS 5Y-9.25%
EPS Q2Q%795.65%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y-7.26%
Revenue growth 5Y-3.31%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 17.64% on average over the next years. This is quite good.
Based on estimates for the next years, LNC will show a small growth in Revenue. The Revenue will grow by 2.48% on average per year.
EPS Next Y13.77%
EPS Next 2Y22.39%
EPS Next 3Y18.16%
EPS Next 5Y17.64%
Revenue Next Year-1.27%
Revenue Next 2Y1.43%
Revenue Next 3Y2%
Revenue Next 5Y2.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.14, which indicates a rather cheap valuation of LNC.
LNC's Price/Earnings ratio is a bit cheaper when compared to the industry. LNC is cheaper than 78.42% of the companies in the same industry.
LNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 4.52, the valuation of LNC can be described as very cheap.
Based on the Price/Forward Earnings ratio, LNC is valued cheaply inside the industry as 82.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, LNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 4.52 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LNC's 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 18.16% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y22.39%
EPS Next 3Y18.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.15%, LNC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.25, LNC pays a better dividend. On top of this LNC pays more dividend than 87.05% of the companies listed in the same industry.
LNC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
On average, the dividend of LNC grows each year by 10.89%, which is quite nice.
LNC has been paying a dividend for at least 10 years, so it has a reliable track record.
LNC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.89%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
148.13% of the earnings are spent on dividend by LNC. This is not a sustainable payout ratio.
LNC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP148.13%
EPS Next 2Y22.39%
EPS Next 3Y18.16%
LINCOLN NATIONAL CORP
NYSE:LNC (11/22/2024, 2:39:06 PM)
35.34
+0.52 (+1.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 4.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 2.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.65% | ||
| PM (TTM) | 1.8% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.52%
EPS 3Y6.93%
EPS 5Y
EPS Q2Q%
EPS Next Y13.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y-7.26%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y