LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
USA - NASDAQ:LINC - US5335351004 - Common Stock
20.98 USD
-0.48 (-2.24%)
20.98 USD
0 (0%)
LINC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 74 industry peers in the Diversified Consumer Services industry. LINC scores excellent on profitability, but 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.
In the past year LINC had a positive cash flow from operations.
In the past 5 years LINC has always 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 (3.19%) is better than 62.67% of its industry peers.
Looking at the Return On Equity, with a value of 7.91%, LINC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.09%, LINC is in the better half of the industry, outperforming 62.67% 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 9.88%.
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
Looking at the Profit Margin, with a value of 3.05%, LINC is in line with its industry, outperforming 57.33% of the companies in the same industry.
In the last couple of years the Profit Margin of LINC has grown nicely.
LINC has a Operating Margin of 4.48%. This is comparable to the rest of the industry: LINC outperforms 57.33% of its industry peers.
LINC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.94%, LINC is doing good in the industry, outperforming 72.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LINC is destroying value.
Compared to 1 year ago, LINC has more shares outstanding
LINC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LINC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that LINC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.93, LINC is in the better half of the industry, outperforming 70.67% of the companies in the same industry.
LINC has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
LINC has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: LINC outperforms 54.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.47
WACC8.73%
2.3 Liquidity
A Current Ratio of 0.90 indicates that LINC may have some problems paying its short term obligations.
With a Current ratio value of 0.90, LINC is not doing good in the industry: 61.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that LINC may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, LINC is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| 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.
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 14.53% in the last year.
The Revenue has been growing by 10.00% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 48.45% on average over the next years. This is a very strong growth
LINC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.77% yearly.
EPS Next Y52.47%
EPS Next 2Y48.45%
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
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.
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
Based on the Price/Earnings ratio of 45.61, the valuation of LINC can be described as expensive.
LINC's Price/Earnings is on the same level as the industry average.
LINC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
LINC is valuated quite expensively with a Price/Forward Earnings ratio of 29.75.
LINC's Price/Forward Earnings ratio is in line with the industry average.
LINC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.61 | ||
| Fwd PE | 29.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LINC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.12 |
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 48.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)0.75
EPS Next 2Y48.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LINC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.98
-0.48 (-2.24%)
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-0.55%
Market Cap663.39M
Analysts83.33
Price Target26.69 (27.22%)
Short Float %3.89%
Short Ratio3.22
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)1.29%
EPS NQ rev (1m)-24.31%
EPS NQ rev (3m)-46.79%
EPS NY rev (1m)0%
EPS NY rev (3m)9.33%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.61 | ||
| Fwd PE | 29.75 | ||
| P/S | 1.42 | ||
| P/FCF | N/A | ||
| P/OCF | 23.84 | ||
| P/B | 3.67 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 19.12 |
EPS(TTM)0.46
EY2.19%
EPS(NY)0.71
Fwd EY3.36%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)0.88
OCFY4.19%
SpS14.79
BVpS5.71
TBVpS5.37
PEG (NY)0.87
PEG (5Y)0.75
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 | 2.93 |
F-Score5
WACC8.73%
ROIC/WACC0.47
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 Year14.49%
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 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%