Lincoln Educational Services Corporation
Lincoln Educational Services Corporation Fundamental Analysis
Lincoln Educational Services Corporation (LINC) shows moderate financial fundamentals with a PE ratio of 49.82, profit margin of 3.86%, and ROE of 10.75%. The company generates $0.5B in annual revenue with strong year-over-year growth of 16.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LINC's fundamental strength across five key dimensions:
Efficiency Score
WeakLINC struggles to generate sufficient returns from assets.
Valuation Score
ModerateLINC shows balanced valuation metrics.
Growth Score
ModerateLINC shows steady but slowing expansion.
Financial Health Score
WeakLINC carries high financial risk with limited liquidity.
Profitability Score
WeakLINC struggles to sustain strong margins.
Key Financial Metrics
Is LINC Expensive or Cheap?
P/E Ratio
LINC trades at 49.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LINC's PEG of 1.12 indicates fair valuation.
Price to Book
The market values Lincoln Educational Services Corporation at 4.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.81 times EBITDA. This signals the market has high growth expectations.
How Well Does LINC Make Money?
Net Profit Margin
For every $100 in sales, Lincoln Educational Services Corporation keeps $3.86 as profit after all expenses.
Operating Margin
Core operations generate 5.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.75 in profit for every $100 of shareholder equity.
ROA
Lincoln Educational Services Corporation generates $4.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lincoln Educational Services Corporation produces operating cash flow of $60.62M, showing steady but balanced cash generation.
Free Cash Flow
Lincoln Educational Services Corporation generates weak or negative free cash flow of $-27.92M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.88 in free cash annually.
FCF Yield
LINC converts -2.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How LINC Stacks Against Its Sector Peers
| Metric | LINC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.82 | 23.01 | Worse (Expensive) |
| ROE | 10.75% | 1228.00% | Weak |
| Net Margin | 3.86% | -4010.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 0.78 | Weak (High Leverage) |
| Current Ratio | 0.86 | 2.35 | Weak Liquidity |
| ROA | 4.05% | -157546.00% (disorted) | Weak |
LINC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lincoln Educational Services Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.27%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
294.14%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
2281.66%
Industry Style: Defensive, Dividend, Low Volatility
High Growth