Lincoln Edu (LINC) AI Stock Analysis

• Market Cap: $843.09M
• Dividend Yield: N/A
• Average Volume (3M): 229.94K
• Price to Earnings (P/E): 60.0
• Beta (1Y): 1.09
• Revenue Growth: 16.90%
• EPS Growth: 41.11%
• Country: US
• Employees: 1,875
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.20
• Shares Outstanding: 31,623,795
• 10 Day Avg. Volume: 256,392
• 30 Day Avg. Volume: 229,943
• PEG Ratio: -0.78
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -17.55
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 25.81
• 1Y Price Target: $28.20
• Price Target Upside: 3.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $26.00 ▼(-4.34% Downside)

The score is primarily held back by financial quality—persistent negative free cash flow and higher leverage despite improving profitability. Technicals are supportive (price above key moving averages with positive MACD), and the earnings call was a clear positive with raised guidance and strong growth metrics, but valuation is stretched at a 54.5 P/E with no dividend support.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for LINC's educational services, enhancing its market position and long-term financial stability.

Student Start Growth

Consistent growth in student starts reflects effective recruitment strategies and product appeal, supporting sustained revenue expansion.

Leadership Stability

Leadership continuity ensures strategic consistency and operational stability, crucial for executing long-term growth initiatives.

Negative Factors

Profitability Challenges

Declining profitability may hinder reinvestment in growth and innovation, impacting competitive positioning over time.

Negative Free Cash Flow

Negative free cash flow suggests liquidity constraints, potentially limiting the company's ability to fund new projects or weather downturns.

Incomplete Balance Sheet Data

Incomplete financial data undermines confidence in financial health assessments, posing risks to investor trust 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, including subscription fees for its learning management systems and virtual classroom services, which are charged to educational institutions and corporate clients. Additionally, the company offers premium content and courses, providing further income through sales and licensing agreements. Strategic partnerships with educational institutions and technology providers enhance LINC's market reach and contribute to its earnings by expanding its service offerings and driving user engagement. Furthermore, LINC may also benefit from grants and funding aimed at educational technology innovations, which can supplement its revenue.

Lincoln Edu Financial Statement Overview

Summary

Income statement trends are constructive (TTM revenue +5.8%, strong ~60% gross margin, and modestly improved net/EBIT margins vs. 2024), but the overall financial profile is constrained by balance-sheet and cash-flow quality issues. Leverage has risen (debt-to-equity ~1.05), and free cash flow remains persistently negative and worsened in TTM (about -$46.8M) despite positive operating cash flow, indicating earnings are not translating into cash available to de-lever or reinvest flexibly.

Income Statement

TTM (Trailing-Twelve-Months) results show healthy revenue growth (+5.8%) and strong gross margin (~60%), indicating solid pricing and/or cost control. Profitability has improved versus 2024 (net margin ~2.9% vs. ~2.2%), and operating profitability is positive (EBIT margin ~4.8%). However, margins remain well below 2023 levels (net margin ~6.9% and EBIT margin ~9.5%), suggesting the earnings profile has become less robust and more sensitive to cost pressure.

Balance Sheet

Leverage has risen: debt-to-equity is ~1.05 in TTM (Trailing-Twelve-Months), up from ~1.00 in 2024 and ~0.70 in 2022–2023, reducing financial flexibility. Equity has grown, but debt has grown faster, and the capital structure is now more debt-reliant. Returns on equity are positive (~7.8% TTM), improving from 2024 (~5.5%), but still below stronger historical periods (notably 2023).

Cash Flow

Operating cash flow is positive and improved in TTM (Trailing-Twelve-Months) (~$46.1M vs. ~$29.3M in 2024), which is a clear strength. The key weakness is persistent cash burn after investments: free cash flow is negative in every period since 2022 and is materially worse in TTM (about -$46.8M). Free cash flow also does not cover net income (negative free cash flow relative to positive earnings), indicating profits are not translating into cash available to reduce debt or return to shareholders.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.74M	440.06M	378.07M	348.29M	335.34M	293.10M
Gross Profit	298.14M	258.31M	215.79M	199.54M	196.41M	170.90M
EBITDA	40.05M	28.61M	42.76M	22.96M	56.40M	22.10M
Net Income	14.13M	9.89M	26.00M	12.63M	34.72M	48.56M
Balance Sheet
Total Assets	466.94M	436.56M	345.25M	291.57M	295.30M	245.19M
Cash, Cash Equivalents and Short-Term Investments	13.48M	59.27M	75.99M	60.83M	83.31M	38.03M
Total Debt	195.73M	177.56M	116.79M	100.63M	97.89M	78.42M
Total Liabilities	281.08M	258.29M	178.44M	146.69M	153.90M	142.14M
Stockholders Equity	185.85M	178.26M	166.80M	144.88M	141.40M	103.05M
Cash Flow
Free Cash Flow	-46.80M	-27.56M	-15.14M	-8.10M	19.92M	17.91M
Operating Cash Flow	46.10M	29.31M	25.56M	882.00K	27.45M	23.48M
Investing Cash Flow	-92.41M	-46.97M	7.37M	-21.35M	37.85M	-5.48M
Financing Cash Flow	5.82M	-3.33M	-2.94M	-12.55M	-20.01M	-18.62M

Lincoln Edu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 27.18 is above the 20-day moving average (MA) of 25.91, above the 50-day MA of 23.88, and above the 200-day MA of 21.86, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, 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
APEI	68 Neutral	$755.59M	32.29	11.20%	―	6.75%	141.11%
UDMY	68 Neutral	$694.78M	-184.33	-1.78%	―	2.53%	95.79%
UTI	63 Neutral	$1.53B	25.55	21.42%	―	14.05%	51.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	58 Neutral	$843.09M	60.00	7.94%	―	16.90%	41.11%
KLC	51 Neutral	$552.55M	-7.65	-11.88%	―	2.20%	-229.99%
GOTU	49 Neutral	$550.48M	-10.57	-21.21%	―	48.81%	61.64%

Lincoln Edu Corporate Events

Lincoln Edu Extends Executive Leadership Contracts Through 2028

On December 19, 2025, Lincoln Educational Services Corporation executed new employment agreements with its top five executives — CEO and President Scott M. Shaw, EVP and CFO Brian K. Meyers, EVP and COO Chad D. Nyce, SVP and General Counsel Alexandra M. Luster, and SVP and Chief Human Resources Officer Stephen E. Ace — primarily to extend their employment terms through December 31, 2028 as the prior contracts were set to expire at the end of 2025. The renewed agreements largely preserve existing terms while implementing higher base salaries effective January 1, 2026, and maintaining eligibility for performance-based annual bonuses and benefits, underscoring the company’s commitment to leadership continuity and operational stability for stakeholders over the next several years.

The most recent analyst rating on (LINC) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Lincoln Edu stock, see the LINC Stock Forecast page.