LINCOLN NATIONAL CORP (LNC) Stock Fundamental Analysis
NYSE:LNC - US5341871094 - Common Stock
42.04 USD
+0.14 (+0.33%)
LNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of LNC have multiple concerns. LNC is not valued too expensively and it also shows a decent growth rate. 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 had a positive 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
LNC has a worse Return On Assets (0.26%) than 71.33% of its industry peers.
Looking at the Return On Equity, with a value of 10.96%, LNC is in line with its industry, outperforming 53.85% of the companies in the same industry.
LNC has a Return On Invested Capital of 0.32%. This is in the lower half of the industry: LNC underperforms 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 10.96% | ||
| ROIC | 0.32% |
ROA(3y)-0.03%
ROA(5y)0.11%
ROE(3y)-5.83%
ROE(5y)-1.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LNC has a Profit Margin of 5.75%. This is in the lower half of the industry: LNC underperforms 60.14% of its industry peers.
LNC's Profit Margin has improved in the last couple of years.
LNC's Operating Margin of 8.43% is on the low side compared to the rest of the industry. LNC is outperformed by 60.84% of its industry peers.
LNC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.43% | ||
| PM (TTM) | 5.75% | ||
| GM | N/A |
OM growth 3Y12.1%
OM growth 5Y19.11%
PM growth 3Y17.77%
PM growth 5Y24.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LNC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LNC has been reduced compared to 5 years ago.
The debt/assets ratio for LNC has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of LNC is 6.16, which is on the high side as it means it would take LNC, 6.16 years of fcf income to pay off all of its debts.
LNC's Debt to FCF ratio of 6.16 is on the low side compared to the rest of the industry. LNC is outperformed by 65.03% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that LNC is somewhat dependend on debt financing.
LNC has a worse Debt to Equity ratio (0.60) than 79.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.16 | ||
| 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
The Earnings Per Share has grown by an impressive 101.78% over the past year.
Measured over the past years, LNC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.39% on average per year.
LNC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.32%.
LNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)101.78%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%28.26%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%-10.67%
3.2 Future
The Earnings Per Share is expected to grow by 10.56% on average over the next years. This is quite good.
LNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y23.67%
EPS Next 2Y12.98%
EPS Next 3Y11.52%
EPS Next 5Y10.56%
Revenue Next Year3.8%
Revenue Next 2Y3.9%
Revenue Next 3Y4.04%
Revenue Next 5Y4.12%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.30, the valuation of LNC can be described as very cheap.
Based on the Price/Earnings ratio, LNC is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
LNC is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.29, which indicates a rather cheap valuation of LNC.
LNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNC is cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LNC to the average of the S&P500 Index (22.63), we can say LNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
LNC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| 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.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y12.98%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
LNC has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 3.52, LNC pays a bit more dividend than its industry peers.
LNC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of LNC is nicely growing with an annual growth rate of 9.26%!
LNC has paid a dividend for at least 10 years, which is a reliable track record.
LNC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.26%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
LNC pays out 38.05% of its income as dividend. This is a sustainable payout ratio.
The dividend of LNC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP38.05%
EPS Next 2Y12.98%
EPS Next 3Y11.52%
NYSE:LNC (8/26/2025, 9:46:06 AM)
42.04
+0.14 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners76.92%
Inst Owner Change-1.12%
Ins Owners0.45%
Ins Owner Change-3.19%
Market Cap7.97B
Analysts55.24
Price Target42.13 (0.21%)
Short Float %4.45%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend2.34
Dividend Growth(5Y)9.26%
DP38.05%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.5%
Min EPS beat(2)3.35%
Max EPS beat(2)23.66%
EPS beat(4)4
Avg EPS beat(4)15.21%
Min EPS beat(4)3.35%
Max EPS beat(4)25.62%
EPS beat(8)6
Avg EPS beat(8)-9.79%
EPS beat(12)7
Avg EPS beat(12)-12.29%
EPS beat(16)7
Avg EPS beat(16)-13.33%
Revenue beat(2)0
Avg Revenue beat(2)-7.49%
Min Revenue beat(2)-14.07%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-7.25%
Min Revenue beat(4)-14.07%
Max Revenue beat(4)-0.91%
Revenue beat(8)0
Avg Revenue beat(8)-12.77%
Revenue beat(12)3
Avg Revenue beat(12)-7.22%
Revenue beat(16)7
Avg Revenue beat(16)-2.02%
PT rev (1m)6.72%
PT rev (3m)12.23%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)6.38%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 5.29 | ||
| P/S | 0.44 | ||
| P/FCF | 8.51 | ||
| P/OCF | 8.51 | ||
| P/B | 0.83 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.93
EY18.86%
EPS(NY)7.94
Fwd EY18.89%
FCF(TTM)4.94
FCFY11.74%
OCF(TTM)4.94
OCFY11.74%
SpS95.95
BVpS50.36
TBVpS44.33
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 10.96% | ||
| ROCE | 0.39% | ||
| ROIC | 0.32% | ||
| ROICexc | 0.33% | ||
| ROICexgc | 0.95% | ||
| OM | 8.43% | ||
| PM (TTM) | 5.75% | ||
| GM | N/A | ||
| FCFM | 5.15% |
ROA(3y)-0.03%
ROA(5y)0.11%
ROE(3y)-5.83%
ROE(5y)-1.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y18.6%
ROICexcg growth 5Y24.83%
ROICexc growth 3Y13.38%
ROICexc growth 5Y19.96%
OM growth 3Y12.1%
OM growth 5Y19.11%
PM growth 3Y17.77%
PM growth 5Y24.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 89.48% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)101.78%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%28.26%
EPS Next Y23.67%
EPS Next 2Y12.98%
EPS Next 3Y11.52%
EPS Next 5Y10.56%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%-10.67%
Revenue Next Year3.8%
Revenue Next 2Y3.9%
Revenue Next 3Y4.04%
Revenue Next 5Y4.12%
EBIT growth 1Y-18.4%
EBIT growth 3Y13.35%
EBIT growth 5Y23.3%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.04%
OCF growth 3YN/A
OCF growth 5YN/A