LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
USA - NASDAQ:LINC - US5335351004 - Common Stock
23.25 USD
+0.05 (+0.22%)
Overall LINC gets a fundamental rating of 4 out of 10. We evaluated LINC against 77 industry peers in the Diversified Consumer Services industry. While LINC belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, LINC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LINC had positive earnings in the past year.
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 3.19%, LINC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
LINC has a better Return On Equity (7.91%) than 64.94% of its industry peers.
With a decent Return On Invested Capital value of 4.09%, LINC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
LINC had an Average Return On Invested Capital over the past 3 years of 3.25%. This is significantly below the industry average of 9.48%.
The last Return On Invested Capital (4.09%) for LINC is above the 3 year average (3.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 7.91% | ||
| ROIC | 4.09% |
ROA(3y)4.32%
ROA(5y)7.36%
ROE(3y)9.16%
ROE(5y)16.33%
ROIC(3y)3.25%
ROIC(5y)5.24%
1.3 Margins
LINC's Profit Margin of 3.05% is in line compared to the rest of the industry. LINC outperforms 58.44% of its industry peers.
In the last couple of years the Profit Margin of LINC has grown nicely.
LINC's Operating Margin of 4.48% is in line compared to the rest of the industry. LINC outperforms 55.84% of its industry peers.
In the last couple of years the Operating Margin of LINC has grown nicely.
LINC's Gross Margin of 59.94% is fine compared to the rest of the industry. LINC outperforms 71.43% of its industry peers.
LINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.48% | ||
| PM (TTM) | 3.05% | ||
| GM | 59.94% |
OM growth 3Y-26.21%
OM growth 5Y14.38%
PM growth 3Y-33.9%
PM growth 5Y25.16%
GM growth 3Y0.07%
GM growth 5Y1.38%
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.
Compared to 5 years ago, LINC has more shares outstanding
Compared to 1 year ago, LINC has a worse debt to assets ratio.
2.2 Solvency
LINC has an Altman-Z score of 3.09. This indicates that LINC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.09, LINC is doing good in the industry, outperforming 74.03% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that LINC is not too dependend on debt financing.
The Debt to Equity ratio of LINC (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.09 |
ROIC/WACC0.48
WACC8.57%
2.3 Liquidity
A Current Ratio of 0.90 indicates that LINC may have some problems paying its short term obligations.
LINC has a worse Current ratio (0.90) than 62.34% of its industry peers.
A Quick Ratio of 0.85 indicates that LINC may have some problems paying its short term obligations.
LINC's Quick ratio of 0.85 is on the low side compared to the rest of the industry. LINC is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
LINC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.92%, 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 60.55% on average per year.
The Revenue has grown by 14.53% in the past year. This is quite good.
LINC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.00% yearly.
EPS 1Y (TTM)76.92%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%350%
Revenue 1Y (TTM)14.53%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.18%
3.2 Future
LINC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.55% yearly.
LINC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.77% yearly.
EPS Next Y62.56%
EPS Next 2Y47.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.49%
Revenue Next 2Y11.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 50.54, the valuation of LINC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LINC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.83. LINC is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 33.37, which means the current valuation is very expensive for LINC.
LINC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LINC to the average of the S&P500 Index (22.82), we can say LINC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.54 | ||
| Fwd PE | 33.37 |
4.2 Price Multiples
LINC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.06 |
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.
LINC has a very decent profitability rating, which may justify a higher PE ratio.
LINC's earnings are expected to grow with 47.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)0.83
EPS Next 2Y47.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LINC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LINC (10/24/2025, 1:02:18 PM)
23.25
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners81.71%
Inst Owner Change-0.17%
Ins Owners6.49%
Ins Owner Change-0.55%
Market Cap735.16M
Revenue(TTM)467.76M
Net Income(TTM)14.29M
Analysts83.33
Price Target26.69 (14.8%)
Short Float %4.07%
Short Ratio3.07
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)2
Avg EPS beat(2)379.23%
Min EPS beat(2)238.41%
Max EPS beat(2)520.05%
EPS beat(4)3
Avg EPS beat(4)197.17%
Min EPS beat(4)-7.56%
Max EPS beat(4)520.05%
EPS beat(8)5
Avg EPS beat(8)100.79%
EPS beat(12)7
Avg EPS beat(12)439.26%
EPS beat(16)9
Avg EPS beat(16)320.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)0.58%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)5.58%
Revenue beat(8)7
Avg Revenue beat(8)1.85%
Revenue beat(12)11
Avg Revenue beat(12)1.74%
Revenue beat(16)12
Avg Revenue beat(16)1.29%
PT rev (1m)0%
PT rev (3m)1.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50.2%
EPS NY rev (1m)6.62%
EPS NY rev (3m)16.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.54 | ||
| Fwd PE | 33.37 | ||
| P/S | 1.57 | ||
| P/FCF | N/A | ||
| P/OCF | 26.42 | ||
| P/B | 4.07 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 21.06 |
EPS(TTM)0.46
EY1.98%
EPS(NY)0.7
Fwd EY3%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)0.88
OCFY3.79%
SpS14.79
BVpS5.71
TBVpS5.37
PEG (NY)0.81
PEG (5Y)0.83
Graham Number7.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 7.91% | ||
| ROCE | 5.84% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.43% | ||
| OM | 4.48% | ||
| PM (TTM) | 3.05% | ||
| GM | 59.94% | ||
| FCFM | N/A |
ROA(3y)4.32%
ROA(5y)7.36%
ROE(3y)9.16%
ROE(5y)16.33%
ROIC(3y)3.25%
ROIC(5y)5.24%
ROICexc(3y)4.26%
ROICexc(5y)7.24%
ROICexgc(3y)4.56%
ROICexgc(5y)7.95%
ROCE(3y)4.64%
ROCE(5y)7.48%
ROICexgc growth 3Y-36.91%
ROICexgc growth 5Y2.57%
ROICexc growth 3Y-35.5%
ROICexc growth 5Y4.6%
OM growth 3Y-26.21%
OM growth 5Y14.38%
PM growth 3Y-33.9%
PM growth 5Y25.16%
GM growth 3Y0.07%
GM growth 5Y1.38%
F-Score5
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 597.21% | ||
| Cap/Sales | 19.33% | ||
| Interest Coverage | 7.82 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.09 |
F-Score5
WACC8.57%
ROIC/WACC0.48
Cap/Depr(3y)393.54%
Cap/Depr(5y)272.39%
Cap/Sales(3y)8.76%
Cap/Sales(5y)6.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.92%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%350%
EPS Next Y62.56%
EPS Next 2Y47.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.53%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.18%
Revenue Next Year14.49%
Revenue Next 2Y11.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y103.57%
EBIT growth 3Y-19.21%
EBIT growth 5Y25.82%
EBIT Next Year295.39%
EBIT Next 3Y77.73%
EBIT Next 5YN/A
FCF growth 1Y-1351.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.64%
OCF growth 3Y2.27%
OCF growth 5Y96.51%
LINCOLN EDUCATIONAL SERVICES / LINC FAQ
Can you provide the ChartMill fundamental rating for LINCOLN EDUCATIONAL SERVICES?
ChartMill assigns a fundamental rating of 4 / 10 to LINC.
What is the valuation status for LINC stock?
ChartMill assigns a valuation rating of 3 / 10 to LINCOLN EDUCATIONAL SERVICES (LINC). This can be considered as Overvalued.
Can you provide the profitability details for LINCOLN EDUCATIONAL SERVICES?
LINCOLN EDUCATIONAL SERVICES (LINC) has a profitability rating of 7 / 10.
What is the valuation of LINCOLN EDUCATIONAL SERVICES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LINCOLN EDUCATIONAL SERVICES (LINC) is 50.54 and the Price/Book (PB) ratio is 4.07.
What is the expected EPS growth for LINCOLN EDUCATIONAL SERVICES (LINC) stock?
The Earnings per Share (EPS) of LINCOLN EDUCATIONAL SERVICES (LINC) is expected to grow by 62.56% in the next year.