LINCOLN NATIONAL CORP (LNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNC - US5341871094 - Common Stock
42.99 USD
+0.25 (+0.58%)
42.99 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LNC. LNC was compared to 147 industry peers in the Insurance industry. Both the profitability and financial health of LNC have multiple concerns. LNC has a decent growth rate and is not valued too expensively. Finally LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LNC had positive earnings in the past year.
LNC had a negative operating cash flow in the past year.
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 (0.49%) is worse than 74.83% of its industry peers.
LNC's Return On Equity of 19.32% is amongst the best of the industry. LNC outperforms 85.71% of its industry peers.
With a Return On Invested Capital value of 0.55%, LNC is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 19.32% | ||
| ROIC | 0.55% |
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 10.28%. This is in the better half of the industry: LNC outperforms 62.59% of its industry peers.
In the last couple of years the Profit Margin of LNC has grown nicely.
The Operating Margin of LNC (14.02%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LNC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 10.28% | ||
| 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
Compared to 1 year ago, LNC has more shares outstanding
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 0.55. This is a neutral value indicating LNC is somewhat dependend on debt financing.
LNC has a worse Debt to Equity ratio (0.55) than 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| 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 growth in Earnings Per Share. In the last year, the EPS has been growing by 37.33%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.39% on average over the past years.
The Revenue has grown by 37.15% in the past year. This is a very strong growth!
Measured over the past years, LNC shows a small growth in Revenue. The Revenue has been growing by 3.52% on average per year.
EPS 1Y (TTM)37.33%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%-0.97%
Revenue 1Y (TTM)37.15%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%10.8%
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 10.56% yearly.
The Revenue is expected to grow by 4.42% on average over the next years.
EPS Next Y28.13%
EPS Next 2Y14.14%
EPS Next 3Y12.3%
EPS Next 5Y10.56%
Revenue Next Year3.64%
Revenue Next 2Y4.23%
Revenue Next 3Y4.22%
Revenue Next 5Y4.42%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.43, the valuation of LNC can be described as very cheap.
Based on the Price/Earnings ratio, LNC is valued cheaper than 82.99% of the companies in the same industry.
LNC is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.31, the valuation of LNC can be described as very cheap.
82.31% of the companies in the same industry are more expensive than LNC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. LNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.31 |
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.
LNC's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y14.14%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
LNC has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 3.48, LNC pays a better dividend. On top of this LNC pays more dividend than 81.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, LNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
On average, the dividend of LNC grows each year by 9.26%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.26%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
LNC pays out 20.16% 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.
DP20.16%
EPS Next 2Y14.14%
EPS Next 3Y12.3%
42.99
+0.25 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner Change6.9%
Ins Owners0.41%
Ins Owner Change-0.2%
Market Cap8.17B
Revenue(TTM)19.63B
Net Income(TTM)2.02B
Analysts54.29
Price Target44.88 (4.4%)
Short Float %3.33%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend2.34
Dividend Growth(5Y)9.26%
DP20.16%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.2%
Min EPS beat(2)8.74%
Max EPS beat(2)23.66%
EPS beat(4)4
Avg EPS beat(4)11%
Min EPS beat(4)3.35%
Max EPS beat(4)23.66%
EPS beat(8)7
Avg EPS beat(8)2.19%
EPS beat(12)8
Avg EPS beat(12)-9.64%
EPS beat(16)8
Avg EPS beat(16)-10.43%
Revenue beat(2)0
Avg Revenue beat(2)-10.01%
Min Revenue beat(2)-14.07%
Max Revenue beat(2)-5.95%
Revenue beat(4)0
Avg Revenue beat(4)-5.78%
Min Revenue beat(4)-14.07%
Max Revenue beat(4)-0.91%
Revenue beat(8)0
Avg Revenue beat(8)-12.04%
Revenue beat(12)2
Avg Revenue beat(12)-9.67%
Revenue beat(16)6
Avg Revenue beat(16)-2.89%
PT rev (1m)0.76%
PT rev (3m)6.54%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.31 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.91
EY18.4%
EPS(NY)8.1
Fwd EY18.85%
FCF(TTM)-0.94
FCFYN/A
OCF(TTM)-0.94
OCFYN/A
SpS103.36
BVpS55.03
TBVpS49
PEG (NY)0.19
PEG (5Y)N/A
Graham Number98.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 19.32% | ||
| ROCE | 0.68% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.57% | ||
| ROICexgc | 1.7% | ||
| OM | 14.02% | ||
| PM (TTM) | 10.28% | ||
| GM | N/A | ||
| FCFM | N/A |
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
ROICexgc growth 3Y18.6%
ROICexgc 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-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
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)37.33%
EPS 3Y-8.69%
EPS 5Y-7.39%
EPS Q2Q%-0.97%
EPS Next Y28.13%
EPS Next 2Y14.14%
EPS Next 3Y12.3%
EPS Next 5Y10.56%
Revenue 1Y (TTM)37.15%
Revenue growth 3Y1.12%
Revenue growth 5Y3.52%
Sales Q2Q%10.8%
Revenue Next Year3.64%
Revenue Next 2Y4.23%
Revenue Next 3Y4.22%
Revenue Next 5Y4.42%
EBIT growth 1Y2379.28%
EBIT growth 3Y13.35%
EBIT growth 5Y23.3%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-121.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-121.84%
OCF growth 3YN/A
OCF growth 5YN/A
LINCOLN NATIONAL CORP / LNC FAQ
Can you provide the ChartMill fundamental rating for LINCOLN NATIONAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to LNC.
What is the valuation status for LNC stock?
ChartMill assigns a valuation rating of 6 / 10 to LINCOLN NATIONAL CORP (LNC). This can be considered as Fairly Valued.
How profitable is LINCOLN NATIONAL CORP (LNC) stock?
LINCOLN NATIONAL CORP (LNC) has a profitability rating of 3 / 10.
Can you provide the financial health for LNC stock?
The financial health rating of LINCOLN NATIONAL CORP (LNC) is 1 / 10.
Is the dividend of LINCOLN NATIONAL CORP sustainable?
The dividend rating of LINCOLN NATIONAL CORP (LNC) is 9 / 10 and the dividend payout ratio is 20.16%.