Lincoln Edu (LINC) AI Stock Analysis

• Market Cap: $715.58M
• Dividend Yield: N/A
• Average Volume (3M): 325.68K
• Price to Earnings (P/E): 58.5
• Beta (1Y): 0.98
• Revenue Growth: 15.24%
• EPS Growth: -54.31%
• Country: US
• Employees: 1,875
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Education & Training Services
• EPS (TTM): 0.11
• Shares Outstanding: 31,592,808
• 10 Day Avg. Volume: 422,912
• 30 Day Avg. Volume: 325,676
• PEG Ratio: -0.18
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.49
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.49
• Enterprise Value/Ebitda: 1.17
• 1Y Price Target: $25.83
• Price Target Upside: 12.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $25.00 ▲(8.79%Upside)

Lincoln Edu's overall score is driven by strong technical indicators and positive earnings call sentiment. However, high valuation metrics and financial performance challenges dampen the score. Strategic corporate actions provide some support.

Positive Factors

Financial Performance

Lincoln Educational Services reported financial results of its first quarter that were above expectations, and its full-year guidance was raised.

Investment Rating and Price Target

Reiterating OUTPERFORM investment rating and raising 12-month price target to $25, representing approximately 23% upside.

Revenue Growth

Revenue in the first quarter increased 13.7% to $117.5 million, due primarily to a 13.1% increase in average student population.

Negative Factors

Free Cash Flow Concerns

The company will be FCF negative in 2025 due to investments but expects to reach FCF breakeven to slightly positive in 2026 and positive in 2027 as new campuses scale into profitability.

Stock Valuation

The stock is trading at a small premium to its for-profit postsecondary education peer group.

Lincoln Edu Business Overview & Revenue Model

Company Description

Lincoln Edu (LINC) is a leading provider of career-oriented post-secondary education. The company operates a network of campuses across the United States, offering a range of degree and diploma programs in sectors such as automotive technology, skilled trades, health sciences, culinary arts, and information technology. Lincoln Edu focuses on hands-on training, aiming to equip students with the practical skills required to succeed in their chosen fields.

How the Company Makes Money

Lincoln Edu generates revenue primarily through tuition fees charged to students enrolled in its programs. The company also benefits from federal and state financial aid programs, which provide financial assistance to eligible students, indirectly contributing to Lincoln Edu's revenue. Additionally, Lincoln Edu may engage in partnerships with businesses and industries to enhance its curriculum and improve job placement opportunities for graduates, thereby attracting more students. Ancillary services such as student housing and career placement services may also contribute to its income.

Lincoln Edu Financial Statement Overview

Summary

Lincoln Edu shows promising revenue growth but struggles with profitability and cash flow. Revenue increased significantly, but profit margins have declined, indicating challenges in maintaining profitability. The balance sheet suggests potential structural issues, and negative free cash flow highlights liquidity concerns.

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	454.20M	440.06M	378.07M	348.29M	335.34M	293.10M
Gross Profit	268.06M	258.31M	215.79M	199.54M	196.41M	170.90M
EBITDA	33.90M	28.61M	42.76M	23.51M	56.40M	22.18M
Net Income	12.05M	9.89M	26.00M	12.63M	34.72M	48.56M
Balance Sheet
Total Assets	427.43M	436.56M	345.25M	291.57M	295.30M	245.19M
Cash, Cash Equivalents and Short-Term Investments	28.66M	59.27M	75.99M	60.83M	83.31M	38.03M
Total Debt	176.30M	177.56M	116.79M	100.63M	97.89M	78.42M
Total Liabilities	249.65M	258.29M	178.44M	146.69M	153.90M	142.14M
Stockholders Equity	177.78M	178.26M	166.80M	144.88M	141.40M	103.05M
Cash Flow
Free Cash Flow	-39.21M	-27.56M	-15.14M	-8.10M	19.92M	17.91M
Operating Cash Flow	35.86M	29.31M	25.56M	882.00K	27.45M	23.48M
Investing Cash Flow	-74.64M	-46.97M	7.37M	-21.35M	37.85M	-5.48M
Financing Cash Flow	-2.34M	-3.33M	-2.94M	-12.55M	-20.01M	-18.62M

Lincoln Edu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.98
• 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 22.98 is above the 20-day moving average (MA) of 22.67, above the 50-day MA of 21.28, and above the 200-day MA of 16.77, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 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
UTI	78 Outperform	$1.72B	30.47	21.81%	―	14.69%	188.00%
PRDO	77 Outperform	$2.07B	13.98	16.54%	1.65%	6.35%	0.35%
LAUR	74 Outperform	$3.52B	12.59	31.14%	―	1.26%	140.30%
STRA	69 Neutral	$2.03B	18.01	6.86%	2.85%	5.72%	11.02%
APEI	66 Neutral	$544.98M	30.00	8.18%	―	4.86%	―
Sector *	65 Neutral	€21.52B	12.88	7.21%	3.39%	0.31%	-40.22%
LINC	64 Neutral	$715.58M	58.51	7.04%	―	15.24%	-54.31%

Lincoln Edu Corporate Events

Lincoln Edu Approves Proposals at Annual Meeting

On May 8, 2025, Lincoln Educational Services Corporation held its Annual Meeting of Shareholders virtually, where all proposals were approved, including the election of directors and the ratification of Deloitte & Touche LLP as the independent accounting firm. The company also announced the continuation of its share repurchase program, with $29.7 million available for future repurchases. This strategic move, alongside the presentation of its growth plans and financial achievements, underscores Lincoln’s commitment to enhancing shareholder value and solidifying its market position.

The most recent analyst rating on (LINC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Lincoln Edu stock, see the LINC Stock Forecast page.