LINCOLN NATIONAL CORP (LNC)
US5341871094 - Common Stock
LNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. Both the profitability and financial health of LNC have multiple concerns. LNC has a correct valuation and a medium growth rate. LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LNC was profitable.
LNC had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LNC reported negative net income in multiple years.
In multiple years LNC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LNC (0.07%) is worse than 75.00% of its industry peers.
LNC has a Return On Equity of 2.97%. This is in the lower half of the industry: LNC underperforms 72.14% of its industry peers.
LNC's Return On Invested Capital of 0.14% is on the low side compared to the rest of the industry. LNC is outperformed by 66.43% of its industry peers.
| 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
The Profit Margin of LNC (1.80%) is worse than 70.00% of its industry peers.
The Operating Margin of LNC (4.65%) is worse than 69.29% 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.
Compared to 1 year ago, LNC has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.65 indicates that LNC is somewhat dependend on debt financing.
The Debt to Equity ratio of LNC (0.65) is worse than 80.71% of its industry peers.
| 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
LNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.52%, which is quite impressive.
The Earnings Per Share has been decreasing by -9.25% on average over the past years.
LNC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
Measured over the past years, LNC shows a decrease in Revenue. The Revenue has been decreasing by -3.31% on average per year.
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
LNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.19% yearly.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y16.86%
EPS Next 2Y21.85%
EPS Next 3Y18.11%
EPS Next 5Y15.19%
Revenue Next Year-1.34%
Revenue Next 2Y1.42%
Revenue Next 3Y2.01%
Revenue Next 5Y2.8%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.57, the valuation of LNC can be described as very cheap.
Based on the Price/Earnings ratio, LNC is valued a bit cheaper than 78.57% of the companies in the same industry.
LNC is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.14, the valuation of LNC can be described as very cheap.
LNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNC is cheaper than 82.86% of the companies 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 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 4.14 |
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.
LNC's earnings are expected to grow with 18.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y21.85%
EPS Next 3Y18.11%
5. Dividend
5.1 Amount
LNC has a Yearly Dividend Yield of 5.86%, which is a nice return.
Compared to an average industry Dividend Yield of 4.35, LNC pays a better dividend. On top of this LNC pays more dividend than 89.29% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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.
The dividend of LNC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP148.13%
EPS Next 2Y21.85%
EPS Next 3Y18.11%
LINCOLN NATIONAL CORP
NYSE:LNC (12/26/2024, 3:03:29 PM)
32.0682
+0.33 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners76.28%
Inst Owner Change-0.44%
Ins Owners0.39%
Ins Owner Change-0.18%
Market Cap5.46B
Analysts55.24
Price Target37.13 (15.78%)
Short Float %2.23%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
Dividend Growth(5Y)10.89%
DP148.13%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.18%
Min EPS beat(2)2.74%
Max EPS beat(2)25.62%
EPS beat(4)3
Avg EPS beat(4)-6.62%
Min EPS beat(4)-63.23%
Max EPS beat(4)25.62%
EPS beat(8)4
Avg EPS beat(8)-19.96%
EPS beat(12)4
Avg EPS beat(12)-17.58%
EPS beat(16)6
Avg EPS beat(16)-12.91%
Revenue beat(2)0
Avg Revenue beat(2)-7.67%
Min Revenue beat(2)-11.82%
Max Revenue beat(2)-3.52%
Revenue beat(4)0
Avg Revenue beat(4)-18.31%
Min Revenue beat(4)-55.9%
Max Revenue beat(4)-1.99%
Revenue beat(8)2
Avg Revenue beat(8)-11.61%
Revenue beat(12)6
Avg Revenue beat(12)-1.93%
Revenue beat(16)8
Avg Revenue beat(16)-1.93%
PT rev (1m)8.51%
PT rev (3m)11.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)2.71%
EPS NY rev (3m)5.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 4.14 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.61 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.76
EY17.96%
EPS(NY)7.75
Fwd EY24.17%
FCF(TTM)-24.05
FCFYN/A
OCF(TTM)-24.05
OCFYN/A
SpS87.45
BVpS52.91
TBVpS46.2
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 2.97% | ||
| ROCE | 0.18% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.14% | ||
| ROICexgc | 0.43% | ||
| OM | 4.65% | ||
| PM (TTM) | 1.8% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-0.14%
ROA(5y)0%
ROE(3y)-15.65%
ROE(5y)-8.05%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
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)21.52%
EPS 3Y6.93%
EPS 5Y-9.25%
EPS Q2Q%795.65%
EPS Next Y16.86%
EPS Next 2Y21.85%
EPS Next 3Y18.11%
EPS Next 5Y15.19%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y-7.26%
Revenue growth 5Y-3.31%
Sales Q2Q%-2.19%
Revenue Next Year-1.34%
Revenue Next 2Y1.42%
Revenue Next 3Y2.01%
Revenue Next 5Y2.8%
EBIT growth 1Y-22.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-233.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-233.24%
OCF growth 3YN/A
OCF growth 5YN/A