Rating Change #5
Lincoln National Corp (LNC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 0.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- LINCOLN NATIONAL CORP's earnings per share declined by 20.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LINCOLN NATIONAL CORP reported lower earnings of $0.80 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($4.06 versus $0.80).
- The change in net income from the same quarter one year ago has exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has significantly decreased by 27.6% when compared to the same quarter one year ago, falling from $339.00 million to $245.30 million.
Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. It sells a range of wealth protection, accumulation, and retirement income products and solutions. The company has a P/E ratio of 26.2, below the average insurance industry P/E ratio of 27.1 and above the S&P 500 P/E ratio of 17.7. Lincoln National Corp (Radnor has a market cap of $7.11 billion and is part of the financial sector and insurance industry. Shares are up 26.6% year to date as of the close of trading on Thursday.You can view the full Lincoln National Corp (Radnor Ratings Report or get investment ideas from our investment research center.
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