ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lincoln Educational Services's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.27%.
As of today (2026-06-24), Lincoln Educational Services's WACC % is 6.85%. Lincoln Educational Services's ROIC % is 5.80% (calculated using TTM income statement data).
Lincoln Educational Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lincoln Educational Services (NAS:LINC) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Lincoln Educational Services's WACC % is 6.85%. Lincoln Educational Services's ROIC % is 5.80% (calculated using TTM income statement data).
Lincoln Educational Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Lincoln Educational Services ROIC % Related Terms
Lincoln Educational Services ROIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, Lincoln Educational Services's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lincoln Educational Services ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Lincoln Educational Services's ROIC % distribution charts can be found below:
* The bar in red indicates where Lincoln Educational Services's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lincoln Educational Services (LINC) has a ROIC % of 4.27% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lincoln Educational Services and its competitors.
Is Lincoln Educational Services' ROIC % too high?
Lincoln Educational Services' current ROIC % is 4.27%. The Education industry median ROIC % is 5.00. Lincoln Educational Services' value of 4.27% is 14.6% below this industry median. Overall, Lincoln Educational Services has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Educational Services' ROIC % compare to DAO and COUR?
Lincoln Educational Services' ROIC % of 4.27% can be compared against companies in the Education industry. The industry median ROIC % is 5.00. Lincoln Educational Services' value of 4.27% is 14.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Education company?
The median ROIC % among Education companies is 5.00, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Educational Services's current ROIC % of 4.27% is 14.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lincoln Educational Services and its competitors. For the Education industry, the median ROIC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Educational Services's current ROIC % is 4.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lincoln Educational Services stock overvalued right now?
Based on GuruFocus' analysis, Lincoln Educational Services (LINC) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.81, compared to a current price of $47.81 — trading 154.2% above its estimated fair value. The current ROIC % is 4.27% and 14.6% below the Education industry median of 5.00. Lincoln Educational Services' overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Lincoln Educational Services (LINC), the current ROIC % is 4.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lincoln Educational Services (LINC) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Educational Services stock appears to be overvalued.
The current stock price of $47.81 is trading 154.2% above its estimated GF Value™ of $18.81.
GuruFocus considers Lincoln Educational Services to be Significantly Overvalued.
Key valuation signals for LINC:
ROIC %: 4.27%
GF Value™: $18.81 vs. price of $47.81 (154.2% above fair value)
Industry Position: 14.6% below the Education median
No single metric tells the full story. See the LINC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lincoln Educational Services Corp provides diversified career-oriented post-secondary education to high school graduates and working adults. The company offers programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology. Its reportable segments include: Campus Operations and Transitional. The majority of the revenue is generated from the Campus Operations segment, which includes all campuses that are continuing in operation and contribute to the company's core operations and performance.
63GF Score
Get the complete analysis for LINC
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LINC has been successfully added to your 
