Lincoln National (LNC) Stock Analysis
Here is a fundamental analysis of Lincoln National (LNC), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| 1-Year Return | 18.10% | 8.77% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| 1-Year Volatility | 33.46% | 27.79% |
| Beta | 1.17 | 0.55 |
Company Profile
| Profile Item | LNC |
|---|---|
| Name | Lincoln National Corporation |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Life & Health Insurance |
| Market Capitalization | 7.13 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Lincoln National (LNC) trades at P/E ratio of 4.08, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.
LNC
Insurance industry group
4.08
Group distribution
- Max
- 25.24
- Q3
- 16.46
- Median
- 12.28
- Q1
- 8.66
- LNC
- 4.08
- Min
- 3.44
Largest peers
- MRSH
- 21.09
- AON
- 18.41
- MFC
- 16.19
- CB
- 11.60
- PGR
- 10.33
- TRV
- 9.08
- LNC
- 4.08
Price-to-Sales Ratio (TTM)
Lincoln National (LNC) trades at 0.38 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.
LNC
Insurance industry group
0.38
Group distribution
- Max
- 3.96
- Q3
- 2.13
- Median
- 1.17
- Q1
- 0.82
- LNC
- 0.38
- Min
- 0.13
Largest peers
- AON
- 4.10
- MRSH
- 2.95
- MFC
- 2.10
- CB
- 2.09
- PGR
- 1.33
- TRV
- 1.32
- LNC
- 0.38
Price-to-Book Ratio (MRQ)
Lincoln National (LNC) trades at 0.77 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.
LNC
Insurance industry group
0.77
Group distribution
- Max
- 3.70
- Q3
- 2.21
- Median
- 1.61
- Q1
- 1.12
- LNC
- 0.77
- Min
- -0.14
Largest peers
- AON
- 7.28
- MRSH
- 5.58
- PGR
- 3.70
- TRV
- 2.02
- MFC
- 1.92
- CB
- 1.73
- LNC
- 0.77
Valuation at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 4.08 | 12.28 |
| Price-to-Sales Ratio (TTM) | 0.38 | 1.17 |
| Price-to-Book Ratio (MRQ) | 0.77 | 1.61 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Lincoln National (LNC) posts ROE of 18.77%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
LNC
Insurance industry group
18.77%
Group distribution
- Max
- 38.88%
- Q3
- 22.34%
- LNC
- 18.77%
- Median
- 14.13%
- Q1
- 9.51%
- Min
- -6.23%
Largest peers
- AON
- 46.45%
- PGR
- 37.90%
- MRSH
- 27.57%
- TRV
- 25.27%
- LNC
- 18.77%
- CB
- 15.43%
- MFC
- 12.56%
Net Profit Margin (TTM)
Lincoln National (LNC) keeps 9.17% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
LNC
Insurance industry group
9.17%
Group distribution
- Max
- 38.86%
- Q3
- 19.36%
- Median
- 11.07%
- LNC
- 9.17%
- Q1
- 5.09%
- Min
- -2.80%
Largest peers
- AON
- 22.54%
- MFC
- 20.04%
- CB
- 18.53%
- TRV
- 15.54%
- MRSH
- 14.26%
- PGR
- 12.93%
- LNC
- 9.17%
Operating Profit Margin (TTM)
operating margin is set aside for Lincoln National (LNC) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 18.77% | 14.13% |
| Return on Assets (TTM) | 0.28% | 2.66% |
| Net Profit Margin (TTM) | 9.17% | 11.07% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Lincoln National (LNC) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for Lincoln National (LNC) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Lincoln National (LNC) has dividend yield of 4.83%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
LNC
Insurance industry group
4.83%
Group distribution
- Max
- 5.43%
- LNC
- 4.83%
- Q3
- 2.64%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 6.84%
- LNC
- 4.83%
- MFC
- 3.33%
- MRSH
- 2.13%
- TRV
- 1.64%
- CB
- 1.24%
- AON
- 0.98%
Dividend Payout Ratio (TTM)
Lincoln National (LNC) has payout ratio of 19.69%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
LNC
Insurance industry group
19.69%
Group distribution
- Max
- 86.52%
- Q3
- 35.43%
- LNC
- 19.69%
- Median
- 14.92%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 70.70%
- MFC
- 52.02%
- MRSH
- 43.94%
- LNC
- 19.69%
- AON
- 16.36%
- CB
- 13.72%
- TRV
- 13.13%
Dividends at a Glance
| Metric | Current stock: LNC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 4.83% | 1.35% |
| Dividend Payout Ratio (TTM) | 19.69% | 14.92% |