Lincoln National Corp (LNC.PD) stock analysis

P/E below its 5-year median

Lincoln National's P/E of 3.6 is below its own 5-year median of 4.2.

P/E below the industry

Lincoln National's P/E of 3.6 is below the Life Insurance median of 10.6.

P/S below the industry

Lincoln National's price-to-sales of 0.41 is below the Life Insurance median of 0.64.

P/B below the industry

Lincoln National's price-to-book of 0.69 is below the Life Insurance median of 0.92.

Trading below fair value

The share price of $41.01 is below our fair value estimate of $66.35.

Margin of safety over 20%

The price is 38.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 108% over the last twelve months, against a 5-year average of 18.7% a year.

Growing slower than the industry

Revenue grew 7.9% over the last twelve months; the Life Insurance median is 8.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 22.6% over the last twelve months and averaged 14.3% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.6%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Lincoln National's return on equity of 22.6% is above the Life Insurance median of 11.7%.

Earnings grew over 5 years

Net income grew 18.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.2% over the last twelve months, against a 5-year average of 9.3%.

Net margin above the industry

Lincoln National's net margin of 12.2% is above the Life Insurance median of 6.5%.

Low debt

Debt is 3.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 29.4% five years ago to 3.5%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -332% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Lincoln National paid dividends worth 4.4% of the share price over the last twelve months.

Yield below Treasuries

The 4.4% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 4.0% or more; Lincoln National yields 4.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 14.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.