LINCOLN NATIONAL CORP (LNC)

US5341871094 - Common Stock

27.09  +0.11 (+0.41%)

Fundamental Rating

3

LNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 142 industry peers in the Insurance industry. Both the profitability and financial health of LNC have multiple concerns. LNC is cheap, but on the other hand it scores bad on growth. LNC also has an excellent dividend rating.



2

1. Profitability

1.1 Basic Checks

LNC had positive earnings in the past year.
LNC had a positive operating cash flow in the past year.
In multiple years LNC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: LNC reported negative operating cash flow in multiple years.

1.2 Ratios

LNC's Return On Assets of 0.12% is on the low side compared to the rest of the industry. LNC is outperformed by 73.05% of its industry peers.
LNC has a Return On Equity of 12.63%. This is in the better half of the industry: LNC outperforms 64.54% of its industry peers.
LNC has a worse Return On Invested Capital (0.21%) than 60.28% of its industry peers.
Industry RankSector Rank
ROA 0.12%
ROE 12.63%
ROIC 0.21%
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

Looking at the Profit Margin, with a value of 2.25%, LNC is doing worse than 67.38% of the companies in the same industry.
The Operating Margin of LNC (4.96%) is worse than 65.25% of its industry peers.
Industry RankSector Rank
OM 4.96%
PM (TTM) 2.25%
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

1

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
Compared to 1 year ago, LNC has an improved debt to assets ratio.

2.2 Solvency

LNC has a debt to FCF ratio of 7.25. This is a slightly negative value and a sign of low solvency as LNC would need 7.25 years to pay back of all of its debts.
LNC's Debt to FCF ratio of 7.25 is in line compared to the rest of the industry. LNC outperforms 40.43% of its industry peers.
LNC has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
LNC's Debt to Equity ratio of 1.85 is on the low side compared to the rest of the industry. LNC is outperformed by 92.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF 7.25
Altman-Z N/A
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

3

3. Growth

3.1 Past

The earnings per share for LNC have decreased strongly by -30.70% in the last year.
LNC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.25% yearly.
The Revenue for LNC has decreased by -17.95% in the past year. This is quite bad
Measured over the past years, LNC shows a decrease in Revenue. The Revenue has been decreasing by -3.31% on average per year.
EPS 1Y (TTM)-30.7%
EPS 3Y6.93%
EPS 5Y-9.25%
EPS growth Q2Q-83.45%
Revenue 1Y (TTM)-17.95%
Revenue growth 3Y-7.26%
Revenue growth 5Y-3.31%
Revenue growth Q2Q2.94%

3.2 Future

LNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.50% yearly.
The Revenue is expected to grow by 0.38% on average over the next years.
EPS Next Y32.35%
EPS Next 2Y18.34%
EPS Next 3Y19.5%
EPS Next 5YN/A
Revenue Next Year-0.23%
Revenue Next 2Y0.27%
Revenue Next 3Y0.38%
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 accelerating.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.72, the valuation of LNC can be described as very cheap.
78.72% of the companies in the same industry are more expensive than LNC, based on the Price/Earnings ratio.
LNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.00.
A Price/Forward Earnings ratio of 3.92 indicates a rather cheap valuation of LNC.
Based on the Price/Forward Earnings ratio, LNC is valued cheaply inside the industry as 84.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, LNC is valued rather cheaply.
Industry RankSector Rank
PE 5.72
Fwd PE 3.92

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, LNC is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.64
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 19.50% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y18.34%
EPS Next 3Y19.5%

8

5. Dividend

5.1 Amount

LNC has a Yearly Dividend Yield of 6.44%, which is a nice return.
LNC's Dividend Yield is rather good when compared to the industry average which is at 4.08. LNC pays more dividend than 92.91% of the companies in the same industry.
LNC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 6.44%

5.2 History

On average, the dividend of LNC grows each year by 8.71%, which is quite nice.
LNC has been paying a dividend for at least 10 years, so it has 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)8.71%
Div Incr Years12
Div Non Decr Years13

5.3 Sustainability

93.07% of the earnings are spent on dividend by LNC. This is not a sustainable payout ratio.
LNC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.07%
EPS Next 2Y18.34%
EPS Next 3Y19.5%

LINCOLN NATIONAL CORP

NYSE:LNC (2/22/2024, 12:31:06 PM)

27.09

+0.11 (+0.41%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.60B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.44%
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)
Max Revenue beat(4)
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 RankSector Rank
PE 5.72
Fwd PE 3.92
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)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.12%
ROE 12.63%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.96%
PM (TTM) 2.25%
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 Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 1.85
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)
Growth
EPS 1Y (TTM)-30.7%
EPS 3Y6.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y32.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.95%
Revenue growth 3Y-7.26%
Revenue growth 5Y
Revenue growth 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