LINCOLN EDUCATIONAL SERVICES (LINC) Stock Fundamental Analysis
NASDAQ:LINC - Nasdaq - US5335351004 - Common Stock - Currency: USD
LINC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. While LINC is still in line with the averages on profitability rating, there are concerns on its financial health. LINC is quite expensive at the moment. 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.
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 2.82%, LINC perfoms like the industry average, outperforming 59.72% of the companies in the same industry.
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.
LINC's Return On Invested Capital of 3.63% is fine compared to the rest of the industry. LINC outperforms 65.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LINC is significantly below the industry average of 10.66%.
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 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 has a Profit Margin (2.65%) which is comparable to the rest of the industry.
LINC's Profit Margin has improved in the last couple of years.
LINC's Operating Margin of 3.93% is in line compared to the rest of the industry. LINC outperforms 58.33% of its industry peers.
LINC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.02%, LINC is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
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.
LINC has more shares outstanding than it did 5 years ago.
LINC has a worse debt/assets ratio than last year.
2.2 Solvency
LINC has an Altman-Z score of 3.21. This indicates that LINC is financially healthy and has little risk of bankruptcy at the moment.
LINC has a better Altman-Z score (3.21) than 70.83% 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.
LINC's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. LINC outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.21 |
ROIC/WACC0.4
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.04 indicates that LINC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, LINC is in line with its industry, outperforming 41.67% of the companies in the same industry.
LINC has a Quick Ratio of 1.01. 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 Quick ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for LINC have decreased strongly by -54.12% in the last 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.
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 51.81% 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 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
Based on the Price/Earnings ratio of 57.62, the valuation of LINC can be described as expensive.
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 27.93, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.47 indicates a quite expensive valuation of LINC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LINC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.78, LINC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.62 | ||
| Fwd PE | 30.47 |
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 | 22.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 51.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)0.95
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 |
22.47
-0.39 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners74.1%
Inst Owner Change0.29%
Ins Owners6.52%
Ins Owner Change1.64%
Market Cap709.83M
Analysts83.33
Price Target26.35 (17.27%)
Short Float %4.09%
Short Ratio3.86
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)0%
PT rev (3m)14.81%
EPS NQ rev (1m)27.06%
EPS NQ rev (3m)56.24%
EPS NY rev (1m)0%
EPS NY rev (3m)28.68%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.62 | ||
| Fwd PE | 30.47 | ||
| P/S | 1.56 | ||
| P/FCF | N/A | ||
| P/OCF | 19.79 | ||
| P/B | 3.99 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 22.91 |
EPS(TTM)0.39
EY1.74%
EPS(NY)0.74
Fwd EY3.28%
FCF(TTM)-1.24
FCFYN/A
OCF(TTM)1.14
OCFY5.05%
SpS14.38
BVpS5.63
TBVpS5.29
PEG (NY)1.46
PEG (5Y)0.95
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 | 3.21 |
F-Score5
WACC8.98%
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 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%