Lincoln National Corporation Fundamental Analysis (NYSE: LNC)
Lincoln National Corporation Fundamental Analysis (NYSE: LNC)
Lincoln National Corporation (NYSE: LNC) shows moderate financial fundamentals with a PE ratio of 8.85, profit margin of 10.58%, and ROE of 19.09%. The company generates $19.4B in annual revenue with weak year-over-year growth of 1.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LNC's fundamental strength across five key dimensions:
Efficiency Score
WeakLNC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLNC trades at attractive valuation levels.
Growth Score
WeakLNC faces weak or negative growth trends.
Financial Health Score
ExcellentLNC maintains a strong and stable balance sheet.
Profitability Score
WeakLNC struggles to sustain strong margins.
Key Financial Metrics
Is LNC Expensive or Cheap?
P/E Ratio
LNC trades at 8.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LNC's PEG of -0.64 indicates potential undervaluation.
Price to Book
The market values Lincoln National Corporation at 0.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.22 times EBITDA. This is generally considered low.
How Well Does LNC Make Money?
Net Profit Margin
For every $100 in sales, Lincoln National Corporation keeps $10.58 as profit after all expenses.
Operating Margin
Core operations generate 13.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.09 in profit for every $100 of shareholder equity.
ROA
Lincoln National Corporation generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lincoln National Corporation generates limited operating cash flow of $-1.33B, signaling weaker underlying cash strength.
Free Cash Flow
Lincoln National Corporation generates weak or negative free cash flow of $-1.33B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.95 in free cash annually.
FCF Yield
LNC converts -15.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
25.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How LNC Stacks Against Its Sector Peers
| Metric | LNC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.85 | 21.03 | Better (Cheaper) |
| ROE | 19.09% | 647.00% | Weak |
| Net Margin | 10.58% | -278.00% (disorted) | Strong |
| Debt/Equity | 0.60 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 25.41 | 878.50 | Strong Liquidity |
| ROA | 0.48% | 4512469.00% | Weak |
LNC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lincoln National Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.80%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
149.99%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-133.15%
Industry Style: Value, Dividend, Cyclical
Declining