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Market Cap

US$12.5b

Last Updated

2021/09/16 22:51 UTC

Data Sources

Company Financials +

Executive Summary

Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. More Details


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Lincoln National's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LNC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LNC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

LNC

-0.7%

US Insurance

-0.6%

US Market


1 Year Return

98.9%

LNC

36.2%

US Insurance

33.6%

US Market

Return vs Industry: LNC exceeded the US Insurance industry which returned 36.8% over the past year.

Return vs Market: LNC exceeded the US Market which returned 33.7% over the past year.


Shareholder returns

LNCIndustryMarket
7 Day0.2%-0.7%-0.6%
30 Day-1.4%-0.8%1.3%
90 Day12.0%7.1%5.3%
1 Year105.7%98.9%39.5%36.2%35.6%33.6%
3 Year4.3%-5.1%35.6%25.4%60.9%51.0%
5 Year62.6%42.7%78.4%56.1%123.4%99.1%

Long-Term Price Volatility Vs. Market

How volatile is Lincoln National's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lincoln National undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNC ($66.58) is trading below our estimate of fair value ($254.8)

Significantly Below Fair Value: LNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LNC is good value based on its PE Ratio (8.9x) compared to the US Insurance industry average (9.5x).

PE vs Market: LNC is good value based on its PE Ratio (8.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LNC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LNC is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Lincoln National forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNC's forecast earnings growth (12.5% per year) is above the savings rate (2%).

Earnings vs Market: LNC's earnings (12.5% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: LNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: LNC's revenue (2.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: LNC's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LNC's Return on Equity is forecast to be low in 3 years time (12.1%).


Past Performance

How has Lincoln National performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNC has high quality earnings.

Growing Profit Margin: LNC's current net profit margins (7.5%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: LNC's earnings have declined by 13.5% per year over the past 5 years.

Accelerating Growth: LNC's earnings growth over the past year (517.5%) exceeds its 5-year average (-13.5% per year).

Earnings vs Industry: LNC earnings growth over the past year (517.5%) exceeded the Insurance industry 76%.


Return on Equity

High ROE: LNC's Return on Equity (6.5%) is considered low.


Financial Health

How is Lincoln National's financial position?


Financial Position Analysis

Short Term Liabilities: LNC's short term assets ($36.7B) exceed its short term liabilities ($18.0B).

Long Term Liabilities: LNC's short term assets ($36.7B) do not cover its long term liabilities ($340.4B).


Debt to Equity History and Analysis

Debt Level: LNC's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: LNC's debt to equity ratio has reduced from 42% to 34.4% over the past 5 years.

Debt Coverage: LNC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LNC's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

What is Lincoln National current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateOct 07 2021Dividend Pay DateNov 01 202125 days from Ex DividendBuy in the next 20 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LNC's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: LNC's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: LNC's dividends per share have been stable in the past 10 years.

Growing Dividend: LNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), LNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LNC's dividends in 3 years are forecast to be well covered by earnings (16.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Dennis Glass (71 yo)

14.17yrs

Tenure

US$14,300,822

Compensation

Mr. Dennis Robert Glass serves as the President and Director of The Lincoln National Life Insurance Company and served as its Chief Executive Officer. Mr. Glass serves as an Executive Officer of Lincoln Li...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD14.30M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LNC's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: LNC's board of directors are seasoned and experienced ( 15.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LNC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lincoln National Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lincoln National Corporation
  • Ticker: LNC
  • Exchange: NYSE
  • Founded: 1905
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$12.512b
  • Shares outstanding: 187.92m
  • Website: https://www.lfg.com

Number of Employees


Location

  • Lincoln National Corporation
  • 150 North Radnor-Chester Road
  • Suite A305
  • Radnor
  • Pennsylvania
  • 19087
  • United States

Listings


Biography

Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, L...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:51
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.