LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
NASDAQ:LINC - Nasdaq - US5335351004 - Common Stock - Currency: USD
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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years LINC has been profitable.
LINC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LINC (2.82%) is comparable to the rest of the industry.
LINC has a Return On Equity of 6.78%. This is in the better half of the industry: LINC outperforms 60.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.63%, LINC is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LINC is significantly below the industry average of 10.64%.
The 3 year average ROIC (3.25%) for LINC is below the current ROIC(3.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 6.78% | ||
| ROIC | 3.63% |
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 2.65% is in line compared to the rest of the industry. LINC outperforms 53.52% of its industry peers.
LINC's Profit Margin has improved in the last couple of years.
LINC has a Operating Margin (3.93%) which is in line with its industry peers.
LINC's Operating Margin has improved in the last couple of years.
LINC's Gross Margin of 59.02% is fine compared to the rest of the industry. LINC outperforms 74.65% of its industry peers.
LINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 2.65% | ||
| GM | 59.02% |
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.
LINC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LINC has been increased compared to 5 years ago.
Compared to 1 year ago, LINC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that LINC is not in any danger for bankruptcy at the moment.
LINC has a Altman-Z score of 3.22. This is in the better half of the industry: LINC outperforms 70.42% of its industry peers.
LINC has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LINC (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.22 |
ROIC/WACC0.41
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.04 indicates that LINC should not have too much problems paying its short term obligations.
LINC has a Current ratio (1.04) which is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that LINC should not have too much problems paying its short term obligations.
LINC has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
LINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.12%.
LINC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 60.55% yearly.
Looking at the last year, LINC shows a quite strong growth in Revenue. The Revenue has grown by 15.25% in the last year.
Measured over the past years, LINC shows a quite strong growth in Revenue. The Revenue has been growing by 10.00% on average per year.
EPS 1Y (TTM)-54.12%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%700%
Revenue 1Y (TTM)15.25%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.68%
3.2 Future
Based on estimates for the next years, LINC will show a very strong growth in Earnings Per Share. The EPS will grow by 51.81% on average per year.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y39.45%
EPS Next 2Y51.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y10.79%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
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 stable.
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
LINC is valuated quite expensively with a Price/Earnings ratio of 58.92.
LINC's Price/Earnings is on the same level as the industry average.
LINC is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.16, 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 (21.90), we can say LINC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.92 | ||
| Fwd PE | 31.16 |
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 | 23.03 |
4.3 Compensation for Growth
LINC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LINC may justify a higher PE ratio.
A more expensive valuation may be justified as LINC's earnings are expected to grow with 51.81% in the coming years.
PEG (NY)1.49
PEG (5Y)0.97
EPS Next 2Y51.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LINC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.98
+0.33 (+1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners74.1%
Inst Owner Change5.96%
Ins Owners6.52%
Ins Owner Change1.64%
Market Cap725.94M
Analysts83.33
Price Target26.35 (14.66%)
Short Float %3.05%
Short Ratio3.01
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)1
Avg EPS beat(2)115.42%
Min EPS beat(2)-7.56%
Max EPS beat(2)238.41%
EPS beat(4)2
Avg EPS beat(4)18.67%
Min EPS beat(4)-193.97%
Max EPS beat(4)238.41%
EPS beat(8)5
Avg EPS beat(8)607.11%
EPS beat(12)6
Avg EPS beat(12)387.59%
EPS beat(16)9
Avg EPS beat(16)293.52%
Revenue beat(2)2
Avg Revenue beat(2)3.08%
Min Revenue beat(2)0.58%
Max Revenue beat(2)5.58%
Revenue beat(4)4
Avg Revenue beat(4)1.93%
Min Revenue beat(4)0.3%
Max Revenue beat(4)5.58%
Revenue beat(8)8
Avg Revenue beat(8)2.27%
Revenue beat(12)11
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)1.8%
PT rev (1m)14.81%
PT rev (3m)15.67%
EPS NQ rev (1m)40.01%
EPS NQ rev (3m)36%
EPS NY rev (1m)17.85%
EPS NY rev (3m)28.68%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.92 | ||
| Fwd PE | 31.16 | ||
| P/S | 1.6 | ||
| P/FCF | N/A | ||
| P/OCF | 20.24 | ||
| P/B | 4.08 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 23.03 |
EPS(TTM)0.39
EY1.7%
EPS(NY)0.74
Fwd EY3.21%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)1.14
OCFY4.94%
SpS14.38
BVpS5.63
TBVpS5.29
PEG (NY)1.49
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 6.78% | ||
| ROCE | 5.18% | ||
| ROIC | 3.63% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.1% | ||
| OM | 3.93% | ||
| PM (TTM) | 2.65% | ||
| GM | 59.02% | ||
| 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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 545.93% | ||
| Cap/Sales | 16.53% | ||
| Interest Coverage | 6.01 | ||
| Cash Conversion | 113.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.22 |
F-Score5
WACC8.94%
ROIC/WACC0.41
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)-54.12%
EPS 3Y-32.27%
EPS 5Y60.55%
EPS Q2Q%700%
EPS Next Y39.45%
EPS Next 2Y51.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.25%
Revenue growth 3Y9.49%
Revenue growth 5Y10%
Sales Q2Q%13.68%
Revenue Next Year13.56%
Revenue Next 2Y10.79%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y134.26%
EBIT growth 3Y-19.21%
EBIT growth 5Y25.82%
EBIT Next Year266.81%
EBIT Next 3Y77.73%
EBIT Next 5YN/A
FCF growth 1Y-1080.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y137.5%
OCF growth 3Y2.27%
OCF growth 5Y96.51%