LINCOLN EDUCATIONAL SERVICES (LINC)
US5335351004 - Common Stock
We assign a fundamental rating of 5 out of 10 to LINC. LINC was compared to 65 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of LINC get a neutral evaluation. Nothing too spectacular is happening here. LINC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
LINC had positive earnings in the past year.
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 7.56%. This is amongst the best in the industry. LINC outperforms 87.50% of its industry peers.
LINC has a Return On Equity of 15.64%. This is amongst the best in the industry. LINC outperforms 85.94% of its industry peers.
LINC has a Return On Invested Capital of 1.84%. This is comparable to the rest of the industry: LINC outperforms 53.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LINC is significantly below the industry average of 15.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 15.64% | ||
| ROIC | 1.84% |
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
LINC has a Profit Margin of 6.90%. This is in the better half of the industry: LINC outperforms 73.44% of its industry peers.
LINC's Profit Margin has declined in the last couple of years.
LINC's Operating Margin of 1.76% is in line compared to the rest of the industry. LINC outperforms 51.56% of its industry peers.
In the last couple of years the Operating Margin of LINC has declined.
With a decent Gross Margin value of 57.09%, LINC is doing good in the industry, outperforming 67.19% of the companies in the same industry.
LINC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.76% | ||
| PM (TTM) | 6.9% | ||
| GM | 57.09% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LINC is destroying value.
The number of shares outstanding for LINC has been increased compared to 1 year ago.
The number of shares outstanding for LINC has been increased compared to 5 years ago.
The debt/assets ratio for LINC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that LINC is not a great score, but indicates only limited risk for bankruptcy at the moment.
LINC's Altman-Z score of 2.71 is fine compared to the rest of the industry. LINC outperforms 71.88% of its industry peers.
LINC has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
LINC's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. LINC outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC0.2
WACC9.13%
2.3 Liquidity
LINC has a Current Ratio of 1.83. This is a normal value and indicates that LINC is financially healthy and should not expect problems in meeting its short term obligations.
LINC has a better Current ratio (1.83) than 68.75% of its industry peers.
LINC has a Quick Ratio of 1.79. This is a normal value and indicates that LINC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.79, LINC is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
LINC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 132.43%, which is quite impressive.
Measured over the past years, LINC shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.61% on average per year.
The Revenue has grown by 8.53% in the past year. This is quite good.
LINC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.51% yearly.
EPS 1Y (TTM)132.43%
EPS 3Y37.61%
EPS 5YN/A
EPS growth Q2Q-18.52%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y8.86%
Revenue growth 5Y7.51%
Revenue growth Q2Q11.68%
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 14.63% yearly.
The Revenue is expected to grow by 10.83% on average over the next years. This is quite good.
EPS Next Y-55.52%
EPS Next 2Y-10.19%
EPS Next 3Y14.63%
EPS Next 5YN/A
Revenue Next Year12.22%
Revenue Next 2Y8.93%
Revenue Next 3Y10.83%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.76, the valuation of LINC can be described as reasonable.
Based on the Price/Earnings ratio, LINC is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
LINC is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
LINC is valuated quite expensively with a Price/Forward Earnings ratio of 26.43.
Based on the Price/Forward Earnings ratio, LINC is valued a bit cheaper than 64.06% of the companies in the same industry.
LINC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 26.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LINC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.13 |
4.3 Compensation for Growth
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 14.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.19%
EPS Next 3Y14.63%
5. Dividend
5.1 Amount
LINC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LINCOLN EDUCATIONAL SERVICES
NASDAQ:LINC (4/26/2024, 7:01:21 PM)
After market: 10.11 0 (0%)10.11
+0.14 (+1.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap317.96M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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 | 11.76 | ||
| Fwd PE | 26.43 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 15.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.76% | ||
| PM (TTM) | 6.9% | ||
| GM | 57.09% | ||
| 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.79 | ||
| 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)
Growth
EPS 1Y (TTM)132.43%
EPS 3Y37.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y-55.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.53%
Revenue growth 3Y8.86%
Revenue growth 5Y
Revenue growth 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