LINCOLN NATIONAL CORP (LNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNC - US5341871094 - Common Stock
41.27 USD
+0.22 (+0.54%)
41.27 USD
0 (0%)
Taking everything into account, LNC scores 4 out of 10 in our fundamental rating. LNC was compared to 149 industry peers in the Insurance industry. LNC may be in some trouble as it scores bad on both profitability and health. LNC is not valued too expensively and it also shows a decent growth rate. LNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year LNC was profitable.
- 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
- With a Return On Assets value of 0.49%, LNC is not doing good in the industry: 71.81% of the companies in the same industry are doing better.
- LNC has a Return On Equity of 19.32%. This is amongst the best in the industry. LNC outperforms 85.23% of its industry peers.
- LNC has a worse Return On Invested Capital (0.55%) than 68.46% of its industry peers.
| 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
- The Profit Margin of LNC (10.28%) is better than 63.09% of its industry peers.
- LNC's Profit Margin has improved in the last couple of years.
- 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
- The debt/assets ratio for LNC has been reduced compared to a year ago.
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.
- With a Debt to Equity ratio value of 0.55, LNC is not doing good in the industry: 74.50% of the companies in the same industry are doing better.
| 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
- The Earnings Per Share has grown by an impressive 37.33% over the past year.
- 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!
- LNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
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
- Based on estimates for the next years, LNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.56% on average per year.
- Based on estimates for the next years, LNC will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y28.31%
EPS Next 2Y14.15%
EPS Next 3Y12.38%
EPS Next 5Y10.56%
Revenue Next Year3.55%
Revenue Next 2Y4.55%
Revenue Next 3Y4.4%
Revenue Next 5Y4.42%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 5.22, which indicates a rather cheap valuation of LNC.
- Based on the Price/Earnings ratio, LNC is valued cheaply inside the industry as 84.56% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of LNC to the average of the S&P500 Index (27.32), we can say LNC is valued rather cheaply.
- A Price/Forward Earnings ratio of 5.09 indicates a rather cheap valuation of LNC.
- 81.88% of the companies in the same industry are more expensive than LNC, based on the Price/Forward Earnings ratio.
- LNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 5.09 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- LNC's 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 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y14.15%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.34%, LNC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.53, LNC pays a better dividend. On top of this LNC pays more dividend than 80.54% of the companies listed in the same industry.
- LNC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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 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
- 20.16% of the earnings are spent on dividend by LNC. This is a low number and 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 2Y14.15%
EPS Next 3Y12.38%
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 of LINCOLN NATIONAL CORP (LNC) stock?
ChartMill assigns a valuation rating of 6 / 10 to LINCOLN NATIONAL CORP (LNC). This can be considered as Fairly Valued.
What is the profitability of LNC stock?
LINCOLN NATIONAL CORP (LNC) has a profitability rating of 3 / 10.
What is the valuation of LINCOLN NATIONAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LINCOLN NATIONAL CORP (LNC) is 5.22 and the Price/Book (PB) ratio is 0.75.
Can you provide the financial health for LNC stock?
The financial health rating of LINCOLN NATIONAL CORP (LNC) is 1 / 10.