LINCOLN NATIONAL CORP (LNC)
US5341871094 - Common Stock
Overall LNC gets a fundamental rating of 3 out of 10. We evaluated LNC against 141 industry peers in the Insurance industry. Both the profitability and financial health of LNC have multiple concerns. LNC has a valuation in line with the averages, but it does not seem to be growing. 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.
In multiple years LNC reported negative net income over the last 5 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 (0.33%) than 70.71% of its industry peers.
LNC has a better Return On Equity (16.79%) than 76.43% of its industry peers.
LNC's Return On Invested Capital of 0.43% is on the low side compared to the rest of the industry. LNC is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 16.79% | ||
| ROIC | 0.43% |
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
The Profit Margin of LNC (7.57%) is comparable to the rest of the industry.
LNC's Operating Margin of 12.00% is in line compared to the rest of the industry. LNC outperforms 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 7.57% | ||
| 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
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
A Debt/Equity ratio of 0.76 indicates that LNC is somewhat dependend on debt financing.
LNC has a worse Debt to Equity ratio (0.76) than 79.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| 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 -32.73%.
The Earnings Per Share has been decreasing by -9.25% on average over the past years.
Looking at the last year, LNC shows a decrease in Revenue. The Revenue has decreased by -6.72% in the last year.
LNC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.31% yearly.
EPS 1Y (TTM)-32.73%
EPS 3Y6.93%
EPS 5Y-9.25%
EPS Q2Q%-73.03%
Revenue 1Y (TTM)-6.72%
Revenue growth 3Y-7.26%
Revenue growth 5Y-3.31%
Sales Q2Q%-11.62%
3.2 Future
The Earnings Per Share is expected to grow by 17.64% on average over the next years. This is quite good.
Based on estimates for the next years, LNC will show a small growth in Revenue. The Revenue will grow by 2.48% on average per year.
EPS Next Y14.07%
EPS Next 2Y21.15%
EPS Next 3Y17.03%
EPS Next 5Y17.64%
Revenue Next Year-0.18%
Revenue Next 2Y1.99%
Revenue Next 3Y3.23%
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
Based on the Price/Earnings ratio of 8.02, the valuation of LNC can be described as reasonable.
LNC's Price/Earnings ratio is a bit cheaper when compared to the industry. LNC is cheaper than 68.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNC to the average of the S&P500 Index (24.41), we can say LNC is valued rather cheaply.
The Price/Forward Earnings ratio is 4.30, which indicates a rather cheap valuation of LNC.
Based on the Price/Forward Earnings ratio, LNC is valued cheaper than 81.43% of the companies in the same industry.
LNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 4.3 |
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 17.03% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y21.15%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.59%, LNC is a good candidate for dividend investing.
LNC's Dividend Yield is rather good when compared to the industry average which is at 4.81. LNC pays more dividend than 90.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, LNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
On average, the dividend of LNC grows each year by 10.89%, 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)10.89%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
LNC pays out 31.25% of its income as dividend. This is a sustainable payout ratio.
LNC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.25%
EPS Next 2Y21.15%
EPS Next 3Y17.03%
LINCOLN NATIONAL CORP
NYSE:LNC (7/26/2024, 7:04:00 PM)
After market: 32.95 0 (0%)32.95
+0.47 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
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 | 8.02 | ||
| Fwd PE | 4.3 | ||
| 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)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 16.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12% | ||
| PM (TTM) | 7.57% | ||
| 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 | 0.76 | ||
| 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)-32.73%
EPS 3Y6.93%
EPS 5Y
EPS Q2Q%
EPS Next Y14.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.72%
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