LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
NASDAQ:LINC - US5335351004 - Common Stock
19.11 USD
-0.53 (-2.7%)
19.11 USD
0 (0%)
Taking everything into account, LINC scores 4 out of 10 in our fundamental rating. LINC was compared to 71 industry peers in the Diversified Consumer Services industry. LINC has a medium profitability rating, but doesn't score so well on its financial health evaluation. LINC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LINC was profitable.
LINC had a positive operating cash flow in the past year.
LINC had positive earnings in each of the past 5 years.
In the past 5 years LINC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.19%, LINC perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.91%, LINC is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
The Return On Invested Capital of LINC (4.09%) is better than 63.38% of its industry peers.
LINC had an Average Return On Invested Capital over the past 3 years of 3.25%. This is significantly below the industry average of 10.23%.
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
The Profit Margin of LINC (3.05%) is comparable to the rest of the industry.
LINC's Profit Margin has improved in the last couple of years.
LINC has a Operating Margin of 4.48%. This is comparable to the rest of the industry: LINC outperforms 59.15% 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 74.65% of its industry peers.
In the last couple of years the Gross Margin of LINC has remained more or less at the same level.
| 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
LINC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LINC has more shares outstanding
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
LINC has an Altman-Z score of 2.83. This is not the best score and indicates that LINC is in the grey zone with still only limited risk for bankruptcy at the moment.
LINC has a better Altman-Z score (2.83) than 67.61% of its industry peers.
LINC has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.83 |
ROIC/WACC0.45
WACC9.04%
2.3 Liquidity
LINC has a Current Ratio of 0.90. This is a bad value and indicates that LINC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LINC (0.90) is worse than 61.97% of its industry peers.
LINC has a Quick Ratio of 0.90. This is a bad value and indicates that LINC is not financially healthy enough and could expect problems in meeting its short term obligations.
LINC has a Quick ratio of 0.85. This is in the lower half of the industry: LINC underperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.92% over the past year.
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.
Looking at the last year, LINC shows a quite strong growth in Revenue. The Revenue has grown by 14.53% in the last year.
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 48.45% yearly.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y52.47%
EPS Next 2Y48.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.29%
Revenue Next 2Y11.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.54 indicates a quite expensive valuation of LINC.
Compared to the rest of the industry, the Price/Earnings ratio of LINC is on the same level as its industry peers.
LINC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 27.10, which means the current valuation is very expensive for LINC.
The rest of the industry has a similar Price/Forward Earnings ratio as LINC.
LINC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.54 | ||
| Fwd PE | 27.1 |
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 | 17.95 |
4.3 Compensation for Growth
LINC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LINC may justify a higher PE ratio.
LINC's earnings are expected to grow with 48.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.69
EPS Next 2Y48.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LINC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.11
-0.53 (-2.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners73.48%
Inst Owner Change5.08%
Ins Owners6.5%
Ins Owner Change-3.83%
Market Cap604.26M
Analysts83.33
Price Target26.69 (39.67%)
Short Float %3.68%
Short Ratio3.15
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)1.29%
PT rev (3m)16.3%
EPS NQ rev (1m)-34.2%
EPS NQ rev (3m)-68.67%
EPS NY rev (1m)9.33%
EPS NY rev (3m)28.84%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)7.95%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.54 | ||
| Fwd PE | 27.1 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 21.72 | ||
| P/B | 3.34 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)0.46
EY2.41%
EPS(NY)0.71
Fwd EY3.69%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)0.88
OCFY4.6%
SpS14.79
BVpS5.71
TBVpS5.37
PEG (NY)0.79
PEG (5Y)0.69
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%
ROICexcg growth 3Y-36.91%
ROICexcg 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 | 2.83 |
F-Score5
WACC9.04%
ROIC/WACC0.45
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 Y52.47%
EPS Next 2Y48.45%
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 Year14.29%
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 Year279.71%
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%