Home Sectors Financial Services Valuation Today: Lincoln National Corporation (NYSE: LNC)

Valuation Today: Lincoln National Corporation (NYSE: LNC)


Lincoln National Corporation is part of the financial services sector and is in the life insurance industry. The company CEO is Dennis R. Glass. Lincoln National Corp offers individual and group insurance, retirement, and investment products in the United States and the United Kingdom. It distributes its products through independent and company-employed agents, and banking.

Previous Intraday Trading Performance:

The LNC stock showed a previous change of 1.58% with an open at 64.88 and a close of 64.91. It reached an intraday high of 66.15 and a low of 64.68.

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The stock has a market cap of $13.3b with 204.3m shares outstanding, of which the float is 200.9m shares. Trading volume reached 1,537,006 shares compared to its average volume of 1,786,682 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Lincoln National Corporation shares returned 2.85% and in the past 30 trading days it returned 4.07%. Over three months, it changed 16.99%. In one year it has changed -5.14% and within that year its 52-week high was 74.17 and its 52-week low was 48.07. LNC stock is 35.03% above its 52 Week Low.

Our calculations show a 200 day moving average of 61.42 and a 50 day moving average of 60.86. Currently LNC stock is trading 5.69% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 7.39 that ended on 31st of December 2018, which according to the previous close, that is a PE of 8.78. Based on 5 analyst estimates, the consensus EPS for the next quarter is 2.09. The TTM EPS is 8.48, which comes to a TTM PE of 7.65. Historically, the PE high was 15.60 and the PE low was 5.20. If the stock reached its PE low, that would represent a price of 44.12, which is a decrease of -32.03%.

The dividend per share is currently 1.48, which is a dividend yield of 2.28%. Also, the payout ratio is 17.45%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 142.80, which means it is possibly undervalued and has a margin of safety of 54.55%

Indicators to Watch:

Based on the latest filings, there is 1.50% of insider ownership and 128.90% of institutional ownership. Short-interest is 3,044,708, which is 1.49% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.61. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.94

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.36%, return on assets is 0.57%, profit margin is 9.94%, price-to-sales is 1.02 and price-to-book is 0.92.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 2  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.