Lineage, Inc. (LINE) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Lineage's EV/EBITDA of 15.5 is below its 5-year median of 20.0.

P/B below the industry

Lineage's price-to-book of 1.05 is below the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $35.40 is above our fair value estimate of $29.64.

Margin of safety under 20%

The price is 19.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -0.1% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

Lineage raised its full-year 2026 Adjusted FFO ("AFFO") per share outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 31.4% over the last twelve months, against 32.2% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 0.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Lineage's return on equity of -2.8% is below the Miscellaneous Investing median of 3.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -4.2% over the last twelve months, against a 5-year average of -4.3%.

Net margin below the industry

Lineage's net margin of -4.2% is below the Miscellaneous Investing median of 10.3%.

High debt

Debt is 88.9% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 11.0% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.05 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.54; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lineage paid dividends worth 6.0% of the share price over the last twelve months.

Yield above Treasuries

The 6.0% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lineage yields 6.0%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 2069% of free cash flow.