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LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis

NASDAQ:LINC - Nasdaq - US5335351004 - Common Stock - Currency: USD

23.18  +0.1 (+0.43%)

Fundamental Rating

4

Taking everything into account, LINC scores 4 out of 10 in our fundamental rating. LINC was compared to 72 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.


Dividend Valuation Growth Profitability Health

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7

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.
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.
LINC Yearly Net Income VS EBIT VS OCF VS FCFLINC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M

1.2 Ratios

LINC's Return On Assets of 2.82% is fine compared to the rest of the industry. LINC outperforms 61.11% of its industry peers.
LINC has a Return On Equity of 6.78%. This is in the better half of the industry: LINC outperforms 61.11% of its industry peers.
With a decent Return On Invested Capital value of 3.63%, LINC is doing good in the industry, outperforming 65.28% 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 10.91%.
The last Return On Invested Capital (3.63%) for LINC is above the 3 year average (3.25%), which is a sign of increasing profitability.
Industry RankSector 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%
LINC Yearly ROA, ROE, ROICLINC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

The Profit Margin of LINC (2.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LINC has grown nicely.
The Operating Margin of LINC (3.93%) is comparable to the rest of the industry.
LINC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.02%, LINC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LINC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LINC Yearly Profit, Operating, Gross MarginsLINC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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3

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.
LINC has a worse debt/assets ratio than last year.
LINC Yearly Shares OutstandingLINC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
LINC Yearly Total Debt VS Total AssetsLINC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

An Altman-Z score of 3.23 indicates that LINC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.23, LINC is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
LINC has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.17, LINC perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Altman-Z 3.23
ROIC/WACC0.4
WACC9%
LINC Yearly LT Debt VS Equity VS FCFLINC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

2.3 Liquidity

LINC has a Current Ratio of 1.04. 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 Current ratio of 1.04. This is comparable to the rest of the industry: LINC outperforms 40.28% of its industry peers.
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 of 1.01. This is comparable to the rest of the industry: LINC outperforms 41.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.01
LINC Yearly Current Assets VS Current LiabilitesLINC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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5

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.
LINC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.25%.
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

The Earnings Per Share is expected to grow by 45.26% 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 Y18.34%
EPS Next 2Y45.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.77%
Revenue Next 2Y10.58%
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.
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.
LINC Yearly Revenue VS EstimatesLINC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
LINC Yearly EPS VS EstimatesLINC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 59.44, the valuation of LINC can be described as expensive.
LINC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LINC to the average of the S&P500 Index (26.29), we can say LINC is valued expensively.
Based on the Price/Forward Earnings ratio of 34.33, the valuation of LINC can be described as expensive.
LINC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.17. LINC is valued rather expensively when compared to this.
Industry RankSector Rank
PE 59.44
Fwd PE 34.33
LINC Price Earnings VS Forward Price EarningsLINC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF N/A
EV/EBITDA 23.13
LINC Per share dataLINC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LINC does not grow enough to justify the current Price/Earnings ratio.
LINC has a very decent profitability rating, which may justify a higher PE ratio.
LINC's earnings are expected to grow with 45.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.24
PEG (5Y)0.98
EPS Next 2Y45.26%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

LINC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LINCOLN EDUCATIONAL SERVICES

NASDAQ:LINC (6/3/2025, 3:27:00 PM)

23.18

+0.1 (+0.43%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-12 2025-05-12/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners69.17%
Inst Owner Change5.85%
Ins Owners5.85%
Ins Owner Change2.41%
Market Cap732.26M
Analysts84
Price Target22.95 (-0.99%)
Short Float %2.67%
Short Ratio2.74
Dividend
Industry RankSector 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)0%
PT rev (3m)12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-148.49%
EPS NY rev (1m)9.19%
EPS NY rev (3m)-27.21%
Revenue NQ rev (1m)2.44%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)3.78%
Valuation
Industry RankSector Rank
PE 59.44
Fwd PE 34.33
P/S 1.61
P/FCF N/A
P/OCF 20.42
P/B 4.12
P/tB 4.38
EV/EBITDA 23.13
EPS(TTM)0.39
EY1.68%
EPS(NY)0.68
Fwd EY2.91%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)1.14
OCFY4.9%
SpS14.38
BVpS5.63
TBVpS5.29
PEG (NY)3.24
PEG (5Y)0.98
Profitability
Industry RankSector 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 RankSector 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 3.23
F-Score5
WACC9%
ROIC/WACC0.4
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 Y18.34%
EPS Next 2Y45.26%
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 Year12.77%
Revenue Next 2Y10.58%
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%