NYSE:LNC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

LNC

0.1%

US Insurance

0.9%

US Market


1 Year Return

-7.8%

LNC

14.8%

US Insurance

15.5%

US Market

Return vs Industry: LNC underperformed the US Insurance industry which returned 14.8% over the past year.

Return vs Market: LNC underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

LNCIndustryMarket
7 Day-3.5%0.1%0.9%
30 Day-2.5%1.4%4.7%
90 Day9.1%2.6%6.6%
1 Year-5.4%-7.8%17.6%14.8%18.1%15.5%
3 Year-2.4%-8.2%36.8%26.2%48.0%38.5%
5 Year10.2%-0.3%63.8%44.2%62.1%44.2%

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 ($58.03) is trading below our estimate of fair value ($157.55)

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 (13.9x) compared to the Insurance industry average (17x).

PE vs Market: LNC is good value based on its PE Ratio (13.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LNC is good value based on its PEG Ratio (0.4x)


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 (1.2x).


Next Steps

Future Growth

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

34.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNC's forecast earnings growth (34.3% per year) is above the savings rate (2.7%).

Earnings vs Market: LNC's earnings (34.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNC's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LNC's revenue (3.2% 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 (11.2%).


Next Steps

Past Performance

How has Lincoln National performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNC has high quality earnings.

Growing Profit Margin: LNC's current net profit margins (4.9%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: LNC's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: LNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LNC had negative earnings growth (-58.5%) over the past year, making it difficult to compare to the Insurance industry average (-10.4%).


Return on Equity

High ROE: LNC's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lincoln National's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: LNC's debt is covered by short term assets (assets are 4.1x debt).


Financial Institutions Analysis

Asset Level: LNC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if LNC has a sufficient allowance for bad loans.

Low Risk Liabilities: LNC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LNC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LNC has an appropriate level of bad loans.


Next Steps

Dividend

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

2.76%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Lincoln National before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: LNC's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LNC's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 reasonably low payout ratio (35.4%), 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 (15.8% payout ratio).


Next Steps

Management

What is the CEO of Lincoln National's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Dennis Glass (69yo)

12.3yrs

Tenure

US$14,422,495

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 ($USD14.42M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

7.3yrs

Average Tenure

55yo

Average Age

Experienced Management: LNC's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

13.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: LNC's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$496,45117 Jun 19
Christine Janofsky
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares7,928
Max PriceUS$62.62
SellUS$532,95017 Jun 19
Lisa Buckingham
EntityIndividual
Role
Head of Human Resources
Executive VP and Chief People
Shares8,500
Max PriceUS$62.70
SellUS$100,44823 May 19
Kenneth Solon
EntityIndividual
Role
Chief Information Officer
Executive VP
Shares1,560
Max PriceUS$64.39
SellUS$286,16514 Mar 19
Jamie Ohl
EntityIndividual
Shares4,638
Max PriceUS$61.70
SellUS$604,85714 Feb 19
Dennis Glass
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$60.49
SellUS$124,82107 Dec 18
Jamie Ohl
EntityIndividual
Shares2,152
Max PriceUS$58.00

Ownership Breakdown

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


Management Team

  • Dennis Glass (69yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$14.42m
  • Chris Giovanni

    Senior VP of Investor Relations & Corporate Treasurer

    • Tenure: 0yrs
  • Ken Solon (58yo)

    Executive VP

    • Tenure: 3.8yrs
  • Randy Freitag (56yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$4.51m
  • Lucy Gase

    Senior VP and Head of Administrative Services & Strategic Support

    • Tenure: 1.2yrs
  • Lisa Buckingham (53yo)

    Executive VP and Chief People

    • Tenure: 10.9yrs
    • Compensation: US$3.22m
  • Will Fuller (48yo)

    Executive VP and President of Annuities

    • Tenure: 8.7yrs
    • Compensation: US$4.35m
  • Ellen Cooper (55yo)

    Executive VP & Chief Investment Officer

    • Tenure: 7.3yrs
    • Compensation: US$3.50m
  • Christine Janofsky (41yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.7yrs
  • Steve Harris

    Chief Ethics & Compliance Officer and Senior VP

    • Tenure: 2.6yrs

Board Members

  • Michael Mee (76yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$261.00k
  • Gary Kelly (64yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$281.00k
  • Dennis Glass (69yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$14.42m
  • George Henderson (70yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: US$297.90k
  • Marguerite Lachman (76yo)

    Director

    • Tenure: 34.5yrs
    • Compensation: US$335.40k
  • Patrick Pittard (73yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$310.40k
  • Eric Johnson (68yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: US$281.00k
  • William Cunningham (75yo)

    Non-Executive Chairman

    • Tenure: 10.5yrs
    • Compensation: US$511.00k
  • Deirdre Connelly (58yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$271.00k
  • Lynn Utter (56yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$276.00k

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$11.509b
  • Shares outstanding: 198.33m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
0JV3LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
LCODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

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 Analysis2019/11/18 23:42
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.