Lincoln Edu (LINC) AI Stock Analysis

• Market Cap: $689.91M
• Dividend Yield: N/A
• Average Volume (3M): 472.87K
• Price to Earnings (P/E): 47.2
• Beta (1Y): 1.00
• Revenue Growth: 14.53%
• EPS Growth: 75.66%
• Country: US
• Employees: 1,875
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.09
• Shares Outstanding: 31,618,404
• 10 Day Avg. Volume: 424,791
• 30 Day Avg. Volume: 472,873
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 23.11
• 1Y Price Target: $26.00
• Price Target Upside: 19.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $20.50 ▼(-5.40% Downside)

Lincoln Edu's overall score is driven by strong earnings call results and revenue growth, but is tempered by concerns over profitability, cash flow, and valuation. Technical indicators suggest bearish momentum, while the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Lincoln Edu's strong revenue and EBITDA growth indicate effective business strategies and market demand, supporting long-term financial health.

Student Start Growth

The increase in student starts reflects successful marketing and campus strategies, suggesting sustained enrollment growth and revenue potential.

Hybrid Teaching Model

The hybrid model enhances educational flexibility, appealing to a broader student base and aligning with modern learning preferences, ensuring competitive advantage.

Negative Factors

Profitability Challenges

Declining profit margins suggest difficulties in cost management or pricing strategy, potentially affecting long-term financial sustainability.

Cash Flow Issues

Negative free cash flow points to liquidity challenges, limiting the company's ability to invest in growth and manage debt effectively.

Balance Sheet Concerns

Incomplete balance sheet data raises questions about financial transparency and health, possibly impacting investor confidence and strategic planning.

Lincoln Edu Business Overview & Revenue Model

Company Description

Lincoln Educational Services Corporation, together with its subsidiaries, provides various career-oriented post-secondary education services to high school graduates and working adults in the United States. The company operates in two segments: Transportation and Skilled Trades, and Healthcare and Other Professions. It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades programs, including electrical, heating and air conditioning repair, welding, computerized numerical control, and electrical and electronic systems technology; health science programs comprising nursing, dental and medical assistant, claim examiner, medical administrative assistant, etc.; hospitality services programs, such as culinary, therapeutic massage, cosmetology, and aesthetics; and information technology programs. The company operates 22 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and other brand names. As of December 31, 2021, it had 13,059 students enrolled at 22 campuses. The company was founded in 1946 and is based in Parsippany, New Jersey.

How the Company Makes Money

Lincoln Edu generates revenue through multiple streams. Primarily, the company makes money by charging tuition fees for its online courses and certification programs, which are offered on a subscription or pay-per-course basis. Additionally, LINC partners with educational institutions and corporations to provide tailored training solutions, often resulting in lucrative contracts that contribute significantly to its earnings. The company also explores revenue through the sale of learning materials, such as textbooks and study guides, as well as through affiliate marketing partnerships with other educational platforms. Furthermore, LINC may generate income by offering premium services, such as one-on-one tutoring or career coaching, enhancing its value proposition and broadening its revenue base.

Lincoln Edu Financial Statement Overview

Summary

Lincoln Edu shows strong revenue growth but faces challenges in profitability and cash flow management. The balance sheet raises concerns due to the absence of liabilities and equity in the latest year, indicating potential structural or reporting issues.

Income Statement

Lincoln Edu has shown a positive trajectory in revenue growth over the years, with a revenue increase from $273.3M in 2019 to $440.1M in 2024. However, the gross profit margin is lower due to the most recent year having high revenue but not a corresponding increase in gross profit. The net profit margin has declined significantly from previous years, indicating challenges in maintaining profitability. Stability in EBIT and EBITDA margins suggests operational efficiency despite profitability concerns.

Balance Sheet

The balance sheet reflects a stable asset base, but the complete absence of liabilities and equity in the latest year raises concerns about the accuracy or financial structuring. The past trend showed a healthy decreasing debt-to-equity ratio and improving equity ratio, but current data is insufficient for a comprehensive analysis of financial health.

Cash Flow

Free cash flow has been negative in recent years, indicating potential liquidity issues. Despite a positive operating cash flow, the significant capital expenditures have led to cash flow challenges. The free cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting net income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	467.76M	440.06M	378.07M	348.29M	335.34M	293.10M
Gross Profit	280.39M	258.31M	215.79M	199.54M	196.41M	170.90M
EBITDA	38.65M	30.23M	42.76M	22.96M	56.40M	22.18M
Net Income	14.29M	9.89M	26.00M	12.63M	34.72M	48.56M
Balance Sheet
Total Assets	447.32M	436.56M	345.25M	291.57M	295.30M	245.19M
Cash, Cash Equivalents and Short-Term Investments	16.70M	59.27M	75.99M	60.83M	83.31M	38.03M
Total Debt	189.13M	177.56M	116.79M	100.63M	97.89M	78.42M
Total Liabilities	266.64M	258.29M	178.44M	146.69M	153.90M	142.14M
Stockholders Equity	180.68M	178.26M	166.80M	144.88M	141.40M	103.05M
Cash Flow
Free Cash Flow	-62.59M	-27.56M	-15.14M	-8.10M	19.92M	17.91M
Operating Cash Flow	27.83M	29.31M	25.56M	882.00K	27.45M	23.48M
Investing Cash Flow	-89.74M	-46.97M	7.37M	-21.35M	37.85M	-5.48M
Financing Cash Flow	11.62M	-3.33M	-2.94M	-12.55M	-20.01M	-18.62M

Lincoln Edu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LINC, the sentiment is Positive. The current price of 21.67 is above the 20-day moving average (MA) of 20.06, above the 50-day MA of 21.04, and above the 200-day MA of 18.90, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LINC.

Lincoln Edu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	2.33B	15.57	15.38%	1.51%	15.99%	13.25%
LAUR	78 Outperform	4.53B	18.14	24.22%	―	0.44%	35.19%
STRA	78 Outperform	2.00B	17.43	6.91%	2.87%	4.31%	-1.08%
UTI	73 Outperform	1.58B	25.48	20.57%	―	14.56%	127.02%
APEI	71 Outperform	658.37M	35.01	10.51%	―	5.50%	338.59%
LINC	54 Neutral	$689.91M	47.21	8.27%	―	14.53%	75.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%