Lincoln National Corp (LNC) stock analysis

P/E below its 5-year median

Lincoln National's P/E of 2.6 is below its own 5-year median of 4.1.

P/E below the industry

Lincoln National's P/E of 2.6 is below the Life Insurance median of 10.8.

P/S below the industry

Lincoln National's price-to-sales of 0.40 is below the Life Insurance median of 0.67.

P/B below the industry

Lincoln National's price-to-book of 0.86 is below the Life Insurance median of 1.11.

Trading below fair value

The share price of $42.56 is below our fair value estimate of $82.61.

Margin of safety over 20%

The price is 48.5% 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 57.1% over the last twelve months, against a 5-year average of 18.7% a year.

Growing faster than the industry

Revenue grew 10.3% over the last twelve months; the Life Insurance median is 7.1%.

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 33.3% 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 0.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Lincoln National's return on equity of 33.3% is above the Life Insurance median of 12.6%.

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 16.4% over the last twelve months, against a 5-year average of 9.3%.

Net margin above the industry

Lincoln National's net margin of 16.4% is above the Life Insurance median of 8.1%.

No debt

Lincoln National has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

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 4.2% of the share price over the last twelve months.

Yield below Treasuries

The 4.2% yield is below 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; Lincoln National yields 4.2%.

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 10.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.