LNC  Lincoln National Corporation

Exchange

NYSE

Sector

Finance

Industry

Life Insurance

Market Cap.

16.03B

Current Price

$70.82
-0.87 (-1.21%)

Book Price

$44.18
Overvalued by 37.62%
Financial Institution

Company Metrics

  • P/E 14.08
  • P/S 1.22
  • P/B 1.12
  • EPS 5.03
  • Dividend 1.16 / 1.62 %
  • Avg. Vol. 1.54M
  • Shares 254.94M
  • Market Cap. 16.03B

Company Description

Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. It sells a range of wealth protection, accumulation, and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Lincoln National Corp. (LNC) Might Surprise This Earnings Season January ...
Zacks.com - Jan 31, 2017
Investors are always looking for stocks that are poised to beat at earnings season and Lincoln National Corporation (LNC - Free Report) may be one such company.
Insurance Stock Q4 Earnings on Feb 1: MET, LNC, TMK, UNM, XL - Yahoo Finance
Option Trading: Lincoln National Corporation (NYSE:LNC) A Clever Short Put ...
CML News - 40 minutes ago
As we look at Lincoln National Corporation we note that a short put spread is one of the most common implementations of an option strategy during a bull market, but the analysis completed when employing the short put spread often times lacks the ...
Trade of the Day: Lincoln National Corporation (LNC) Stock Looks Healthy
Investorplace.com - Jan 30, 2017
Lincoln National Corporation (NYSE:LNC) - This life and health insurance company offers annuities, life, group life and a broad range of other insurance products including annuities, disability, dental insurance and employer-sponsored plans.
Lincoln National Corporation (NYSE:LNC) Files An 8-K Amendments to Articles of ... - Market Exclusive
Lincoln National Corporation (NYSE:LNC) PEG Ratio At 1.05 - Equities Focus
Lincoln National Corporation (LNC) Moves Higher on Volume Spike for February 03
Equities.com - Feb 3, 2017
Lincoln National Corporation (LNC) traded on unusually high volume on Feb. 03, as the stock gained 1.42% to close at $69.50.
Lincoln National (LNC) Beats on Q4 Earnings and Revenues - Yahoo Finance
Lincoln National Corporation Forecasted to Post Q1 2017 Earnings of $1.62 Per ... - The Cerbat Gem
Lincoln National Corporation (LNC) Moves Higher on Volume Spike for February 01
Equities.com - Feb 1, 2017
Lincoln National Corporation (LNC) traded on unusually high volume on Feb. 01, as the stock gained 2.09% to close at $68.92.
Lincoln National Corporation (LNC) Releases Earnings Results, Beats ... - Highland Mirror
Lincoln National Corporation (LNC) Earns Buy Rating from Analysts at Citigroup ... - The Cerbat Gem
The Lincoln National Corp. (LNC) Shares Bought by the SG Americas Securities LLC
DailyQuint - 5 hours ago
SG Americas Securities LLC increased its stake in shares of Lincoln National Corp. (NYSE:LNC) by 1,148.0% during the third quarter, according to its most recent Form 13F filing with the SEC.
Insider Trading Activity Lincoln National Co. (NYSE:LNC) – EVP Sold 2275 ... - Market Exclusive
Equity Perception: Analyst's Indicator Review for Lincoln National Corporation ...
The USA Commerce - Feb 24, 2017
Shares of Lincoln National Corporation (NYSE:LNC) dropped -0.01% to $71.69. During the trading on 02/23/2017, Company's stock ranged from $71.03 to $72.04.
Credit Agricole SA Has $21919000 Stake in Lincoln National Corporation (LNC)
BNB Daily (blog) - Feb 18, 2017
Lincoln National Corporation logo Credit Agricole S A boosted its stake in Lincoln National Corporation (NYSE:LNC) by 11.5% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission.
Stock Price of Lincoln National Corporation (LNC) Increases 1.88% - Money Flow Index & Trends
Earnings Clues on Lincoln National Corporation (LNC), Mastercard Incorporated ... - StockNewsJournal
Fsi Group adds Lincoln National Corporation (LNC) by $3085630
Highland Mirror - Feb 9, 2017
Fsi Group said it has added new position to its fund Lincoln National Corporation by purchasing shares during the most recent quarter end.
Revenue Approximations Analysis: Lincoln National Corporation (LNC), Edwards ... - StockNewsJournal
The Holderness Investments Co. Has $816000 Stake in Lincoln National ... - DailyQuint
Is It Time to go for Lincoln National Corporation (LNC), Textron Inc. (TXT)?
StockNewsJournal - Feb 21, 2017
Investors who are keeping close eye on the stock of Lincoln National Corporation (NYSE:LNC) established that the company was able to keep return on investment at - in the trailing twelve month while Reuters data showed that industry's average stands at ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for LNC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate LNC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

LNC has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

LNC has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 202.91B 218.87B 236.95B 253.38B 251.94B
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

LNC has shown an inability to deliver strong results for shareholders. This could be due to poor management, LNC operating in a highly competitive industry, or having a weak business in general.

LNC has only generated $7.64 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 294.00M 1.31B 1.24B 1.52B 1.15B
divided by
Stockholders' Equity 14.16B 14.97B 13.45B 15.74B 13.62B
Return on Equity 2.08% 8.77% 9.25% 9.63% 8.47%

Poor Business Performance over the past 10 years

LNC's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

LNC has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

LNC has consistently retained profits. This may put LNC in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, LNC can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 4.14B 4.29B 3.75B 3.32B 3.93B 4.13B 4.04B 5.01B 6.02B 6.47B
Retained Earnings Growth - 3.75% -12.76% -11.46% 18.64% 4.88% -1.99% 23.96% 20.13% 7.51%

Highly Competitive Industry over the past 10 years

It's likely that LNC is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely LNC invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 1.32B 1.22B 57.00M -485.00M 980.00M 294.00M 1.31B 1.24B 1.52B 1.15B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

LNC is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that LNC has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

LNC has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that LNC may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 1.32B 1.22B 57.00M -485.00M 980.00M 294.00M 1.31B 1.24B 1.52B 1.15B
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

LNC has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests LNC is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 385.00M 430.00M 430.00M 79.00M 42.00M 61.00M 91.00M 128.00M 170.00M 204.00M
divided by
Shares Outstanding 256.53M 273.91M 259.39M 285.64M 319.21M 314.95M 287.59M 275.15M 267.96M 254.94M
Dividend Paid Per Share 1.50 1.57 1.66 0.28 0.13 0.19 0.32 0.47 0.63 0.80
Price at Year End 60.94 54.59 17.89 24.51 27.16 19.34 25.23 51.32 58.80 50.83
Dividend Yield 2.46% 2.88% 9.27% 1.13% 0.48% 1.00% 1.25% 0.91% 1.08% 1.57%

Strong History of Stock Buybacks over the past 10 years

LNC has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 256.53M 273.91M 259.39M 285.64M 319.21M 314.95M 287.59M 275.15M 267.96M 254.94M
Stock Bought Back - -6.34% 5.60% -9.19% -10.52% 1.35% 9.51% 4.52% 2.68% 5.11%
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