Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States.
Very undervalued established dividend payer.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LNC underperformed the US Insurance industry which returned -14.3% over the past year.
Return vs Market: LNC underperformed the US Market which returned 8.9% over the past year.
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
1 day ago | Simply Wall StA Rising Share Price Has Us Looking Closely At Lincoln National Corporation's (NYSE:LNC) P/E Ratio
2 weeks ago | Simply Wall StTrade Alert: The Independent Director Of Lincoln National Corporation (NYSE:LNC), Marguerite Lachman, Has Just Spent US$108k Buying A Few More Shares
2 weeks ago | Simply Wall StCould Lincoln National Corporation (NYSE:LNC) Have The Makings Of Another Dividend Aristocrat?
Is Lincoln National undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LNC ($47.27) is trading below our estimate of fair value ($153.51)
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 (13.7x) compared to the Insurance industry average (14.4x).
PE vs Market: LNC is good value based on its PE Ratio (13.7x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: LNC is good value based on its PEG Ratio (0.5x)
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 (1x).
How is Lincoln National forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LNC's forecast earnings growth (28.8% per year) is above the savings rate (2.2%).
Earnings vs Market: LNC's earnings (28.8% per year) are forecast to grow faster than the US market (22.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LNC's revenue (2.4% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: LNC's revenue (2.4% 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 (11.1%).
How has Lincoln National performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LNC has a large one-off loss of $193.0M impacting its March 31 2020 financial results.
Growing Profit Margin: LNC's current net profit margins (3.9%) are lower than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: LNC's earnings have declined by -0.1% 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 (-55%) over the past year, making it difficult to compare to the Insurance industry average (-0.4%).
Return on Equity
High ROE: LNC's Return on Equity (4.1%) is considered low.
How is Lincoln National's financial position?
Financial Position Analysis
Short Term Liabilities: LNC's short term assets ($41.3B) exceed its short term liabilities ($8.9B).
Long Term Liabilities: LNC's short term assets ($41.3B) do not cover its long term liabilities ($293.2B).
Debt to Equity History and Analysis
Debt Level: LNC's debt to equity ratio (45.6%) is considered high.
Reducing Debt: LNC's debt to equity ratio has increased from 40.1% to 45.6% over the past 5 years.
Debt Coverage: LNC's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: LNC's interest payments on its debt are well covered by EBIT (3.7x coverage).
What is Lincoln National's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LNC's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: LNC's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (4.32%).
Stability and Growth of Payments
Stable Dividend: LNC's dividends per share have been stable in the past 10 years.
Growing Dividend: LNC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.5%), LNC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LNC's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dennis Glass (69yo)
Mr. Dennis Robert Glass serves as the President and Director of The Lincoln National Life Insurance Company and served as its Chief Executive Officer. Mr. Glass serves as an Executive Officer of Lincoln Li ...
CEO Compensation Analysis
Compensation vs Market: Dennis's total compensation ($USD15.41M) is above average for companies of similar size in the US market ($USD7.17M).
Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.
|Executive VP||9.42yrs||US$4.72m||0.083% $7.5m|
|Executive VP & Chief Investment Officer||7.83yrs||US$3.71m||0.048% $4.4m|
|Executive VP and Chief People||11.5yrs||US$3.40m||0.030% $2.7m|
|Executive VP||9.25yrs||US$4.66m||0.11% $9.6m|
|Senior VP & Chief Accounting Officer||4.25yrs||no data||0.0012% $111.4k|
|Executive VP||4.42yrs||no data||0.018% $1.7m|
|Senior VP and Head of Administrative Services & Strategic Support||1.75yrs||no data||no data|
|Senior VP of Investor Relations & Corporate Treasurer||no data||no data||no data|
|Chief Ethics & Compliance Officer and Senior VP||3.17yrs||no data||no data|
Experienced Management: LNC's management team is seasoned and experienced (7.8 years average tenure).
|Independent Director||19.42yrs||US$280.00k||0.00043% $39.3k|
|Independent Director||10.58yrs||US$315.00k||0.0015% $141.6k|
|Independent Director||14.17yrs||US$316.90k||0.0045% $410.1k|
|Independent Director||35.08yrs||US$359.40k||0.0015% $141.6k|
|Independent Director||14.17yrs||US$329.40k||no data|
|Independent Director||22.08yrs||US$295.00k||no data|
|Independent Non-Executive Chairman||11.08yrs||US$516.00k||0.0045% $412.8k|
|Independent Director||4.08yrs||US$293.07k||0.00052% $47.5k|
|Independent Director||2.58yrs||US$283.50k||no data|
Experienced Board: LNC's board of directors are seasoned and experienced ( 14.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LNC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lincoln National Corporation's company bio, employee growth, exchange listings and data sources
- Name: Lincoln National Corporation
- Ticker: LNC
- Exchange: NYSE
- Founded: 1905
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$9.134b
- Shares outstanding: 193.22m
- Website: https://www.lfg.com
Number of Employees
- Lincoln National Corporation
- 150 North Radnor Chester Road
- Suite A305
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LNC||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1969|
|0JV3||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1969|
|LCO||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1969|
|L1NC34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
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, Life Insurance, and Group Protection. The Annuities segment offers variable, fixed, and indexed variable annuities. The Retirement Plan Services segment provides employers with retirement plan products and services primarily in the defined contribution retirement plan marketplace. This segment offers individual and group variable annuities, group fixed annuities, and mutual fund-based programs; and a range of plan services, including plan recordkeeping, compliance testing, participant education, and trust and custodial services. The Life Insurance segment provides life insurance products, including term insurance, such as single and survivorship versions of universal life insurance; variable universal life insurance; indexed universal life insurance products; and critical illness and long-term care riders. The Group Protection segment offers group non-medical insurance products comprising short and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1905 and is headquartered in Radnor, Pennsylvania.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/06 02:54|
|End of Day Share Price||2020/06/05 00:00|
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.