LINCOLN NATIONAL CORP (LNC)
US5341871094 - Common Stock
Taking everything into account, LNC scores 3 out of 10 in our fundamental rating. LNC was compared to 141 industry peers in the Insurance industry. LNC has a bad profitability rating. Also its financial health evaluation is rather negative. LNC has a valuation in line with the averages, but it does not seem to be growing. Finally LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LNC had positive earnings in the past year.
In the past year LNC has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: LNC reported negative net income in multiple years.
In multiple years LNC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LNC (0.43%) is worse than 65.71% of its industry peers.
LNC has a better Return On Equity (20.74%) than 86.43% of its industry peers.
The Return On Invested Capital of LNC (0.52%) is worse than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 20.74% | ||
| ROIC | 0.52% |
ROA(3y)-0.14%
ROA(5y)0%
ROE(3y)-15.65%
ROE(5y)-8.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LNC has a Profit Margin of 9.66%. This is in the better half of the industry: LNC outperforms 61.43% of its industry peers.
The Operating Margin of LNC (14.43%) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 9.66% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for LNC has been increased compared to 1 year ago.
Compared to 5 years ago, LNC has less shares outstanding
LNC has a better debt/assets ratio than last year.
2.2 Solvency
LNC has a Debt/Equity ratio of 0.72. This is a neutral value indicating LNC is somewhat dependend on debt financing.
LNC's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. LNC is outperformed by 76.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
LNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.39%.
The Earnings Per Share has been decreasing by -9.25% on average over the past years.
LNC shows a decrease in Revenue. In the last year, the revenue decreased by -4.05%.
The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)-33.39%
EPS 3Y6.93%
EPS 5Y-9.25%
EPS Q2Q%-8.91%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-7.26%
Revenue growth 5Y-3.31%
Sales Q2Q%8.94%
3.2 Future
Based on estimates for the next years, LNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.64% on average per year.
LNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y11.54%
EPS Next 2Y20.89%
EPS Next 3Y17.12%
EPS Next 5Y17.64%
Revenue Next Year-0.85%
Revenue Next 2Y1.36%
Revenue Next 3Y1.84%
Revenue Next 5Y2.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.49, which indicates a rather cheap valuation of LNC.
Based on the Price/Earnings ratio, LNC is valued a bit cheaper than 68.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. LNC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.86, the valuation of LNC can be described as very cheap.
Based on the Price/Forward Earnings ratio, LNC is valued cheaper than 82.14% of the companies in the same industry.
LNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 3.86 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as LNC's earnings are expected to grow with 17.12% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y20.89%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
LNC has a Yearly Dividend Yield of 5.77%, which is a nice return.
LNC's Dividend Yield is rather good when compared to the industry average which is at 5.41. LNC pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, LNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
5.2 History
On average, the dividend of LNC grows each year by 10.89%, which is quite nice.
LNC has paid a dividend for at least 10 years, which is a reliable track record.
LNC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.89%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
24.08% of the earnings are spent on dividend by LNC. This is a low number and sustainable payout ratio.
LNC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.08%
EPS Next 2Y20.89%
EPS Next 3Y17.12%
LINCOLN NATIONAL CORP
NYSE:LNC (9/6/2024, 8:26:05 PM)
After market: 29.95 +0.5 (+1.7%)29.45
-1.76 (-5.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 3.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 20.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.43% | ||
| PM (TTM) | 9.66% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.39%
EPS 3Y6.93%
EPS 5Y
EPS Q2Q%
EPS Next Y11.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-7.26%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y