Lincoln National Corp (LNC, Financial) has experienced a notable uptick in its stock performance, with an 11.50% gain over the past week and a 13.33% gain over the past three months. The current market capitalization stands at $5.36 billion, with a share price of $31.62. When compared to the GF Value of $38.27, LNC is considered modestly undervalued, a shift from its previous status as significantly undervalued when the GF Value was at $51.98. This change in valuation suggests a positive market reassessment of the company's potential.
Understanding Lincoln National Corp
Lincoln National Corp, operating in the competitive insurance industry, manages a diverse portfolio of insurance and retirement services. The company's segments include Annuities, Retirement Plan Services, Life Insurance, and Group Protection, offering products such as fixed and indexed annuities, variable annuities, and various life insurance options. These offerings cater to a broad customer base, seeking to secure their financial futures through reliable insurance and retirement plans.
Profitability Analysis
With a Profitability Rank of 5/10, LNC's financial health is moderate within its industry. The company's Return on Equity (ROE) is currently at -13.55%, which, despite being negative, fares better than 7.58% of 488 companies in the same sector. The Return on Assets (ROA) stands at -0.22%, surpassing 12.6% of 492 companies, while the Return on Invested Capital (ROIC) is -0.16%, outperforming 12.26% of 359 companies. LNC has maintained profitability for 9 out of the past 10 years, indicating a consistent performance relative to 52.08% of 480 companies.
Growth Prospects
The company's Growth Rank is currently at 1/10, reflecting challenges in its expansion efforts. LNC's 3-Year Revenue Growth Rate per Share has decreased by 8.80%, which is still better than 15.99% of 469 companies. However, the 5-Year Revenue Growth Rate per Share shows a slight increase of 1.00%, outperforming 29.93% of 431 companies. More positively, the 3-Year EPS without NRI Growth Rate has risen by 25.60%, better than 74.19% of 399 companies, and the 5-Year EPS without NRI Growth Rate has grown by 6.90%, surpassing 53.64% of 302 companies.
Top Shareholders
Notable investors have taken positions in LNC, with Jim Simons (Trades, Portfolio) leading the pack holding 824,074 shares, representing 0.49% of the company. First Eagle Investment (Trades, Portfolio) follows with 291,600 shares, accounting for 0.17% share percentage, and HOTCHKIS & WILEY holds 239,830 shares, making up 0.14% of the company's shares.
Competitive Landscape
When compared to its competitors, LNC stands strong with a market cap of $5.36 billion. American Equity Investment Life Holding Co (AEL, Financial) has a slightly lower market cap of $4.46 billion, while F&G Annuities & Life Inc (FG, Financial) and Jackson Financial Inc (JXN, Financial) have market caps of $5.13 billion and $5.03 billion, respectively. This places LNC in a competitive position within its industry segment.
Conclusion
In summary, Lincoln National Corp's recent stock performance reflects a market that is recognizing its value, as indicated by the GF Value. Despite a moderate profitability rank and a low growth rank, the company has shown resilience with consistent profitability over the past decade and a strong shareholder base. When juxtaposed with its competitors, LNC's market cap suggests it is holding its own in the insurance industry. Investors may find LNC an interesting case of a company with potential for recovery and growth, as reflected in its recent stock price rally.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
