Lincoln National (LNC) AI Stock Analysis

• Market Cap: $8.76B
• Dividend Yield: 3.93%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 4.1
• Beta (1Y): 1.07
• Revenue Growth: 35.76%
• EPS Growth: 636.97%
• Country: US
• Employees: 9,783
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 2.04
• Shares Outstanding: 189,939,060
• 10 Day Avg. Volume: 1,903,365
• 30 Day Avg. Volume: 1,573,038
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -2.70
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 5.28
• 1Y Price Target: $46.82
• Price Target Upside: 2.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $47.00 ▲(2.69% Upside)

Lincoln National's overall stock score reflects a balance of strong valuation and technical indicators, supported by positive earnings call insights and strategic corporate events. However, financial performance concerns, particularly in cash flow, temper the score. The company's ability to address these challenges will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution of strategic initiatives, supporting long-term business expansion.

Leadership Appointment

The appointment of a Chief AI, Data and Analytics Officer reflects a strategic focus on leveraging technology for competitive advantage and operational efficiency.

Debt Management

Issuing senior notes to manage debt improves financial flexibility and strengthens the balance sheet, supporting long-term strategic goals.

Negative Factors

Cash Flow Challenges

Negative cash flows indicate potential liquidity issues, which could hinder the company's ability to invest in growth and meet financial obligations.

Profit Margin Decline

Declining profit margins suggest increased costs or pricing pressures, potentially impacting long-term profitability and competitive positioning.

Volatility in Group Protection Earnings

Earnings volatility in Group Protection indicates challenges in managing claims, which could affect segment stability and profitability.

Lincoln National Business Overview & Revenue Model

Company Description

Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The Annuities segment offers fixed, variable, and indexed variable annuities. The Retirement Plan Services segment provides employers with retirement plan products and services primarily in the defined contribution retirement plan marketplace. This segment offers individual and group variable annuities, group fixed annuities, and mutual fund-based programs; and a range of plan services, including plan recordkeeping, compliance testing, participant education, and trust and custodial services. The Life Insurance segment provides life insurance products, including term insurance, such as single and survivorship versions of universal life insurance; variable universal life insurance; indexed universal life insurance products; and critical illness and long-term care riders. The Group Protection segment offers group non-medical insurance products comprising short and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1905 and is based in Radnor, Pennsylvania.

How the Company Makes Money

Lincoln National generates revenue primarily through the sale of insurance policies and financial products. Key revenue streams include premiums collected from life insurance policies, fees from annuity contracts, and investment income from the management of assets. The company earns fees on the assets under management in its retirement and investment products, contributing significantly to its earnings. Additionally, Lincoln National engages in strategic partnerships with financial advisors, broker-dealers, and other financial institutions, enhancing its distribution capabilities and broadening its market reach. The performance of its investment portfolio also plays a critical role in its profitability, as investment income is a substantial component of its overall revenue.

Lincoln National Financial Statement Overview

Summary

Lincoln National shows mixed financial performance. Positive revenue growth and improved leverage management are offset by declining profit margins and significant cash flow challenges, indicating potential liquidity concerns.

Income Statement

Lincoln National's income statement shows moderate performance with a recent TTM revenue growth of 2.18%, indicating a positive trend. However, the gross profit margin has decreased from 38.67% in 2024 to 28.83% in the TTM period, suggesting increased costs or pricing pressures. The net profit margin also declined from 18.21% in 2024 to 11.45% in TTM, reflecting reduced profitability. Despite these challenges, the company maintains a positive EBIT margin of 14.58% in TTM, though it has decreased from previous years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.55 in TTM, improved from 0.77 in 2024, indicating better leverage management. The return on equity (ROE) is strong at 23.14% in TTM, although it has decreased from 39.61% in 2024, suggesting a decline in efficiency in generating returns from equity. The equity ratio remains robust, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is notably negative at -119.02%, indicating cash flow difficulties. The operating cash flow to net income ratio is 0, highlighting issues in converting income into cash. These factors suggest potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.46B	17.99B	11.71B	18.93B	17.61B	17.58B
Gross Profit	4.80B	4.60B	50.00M	2.43B	3.90B	3.46B
EBITDA	2.77B	4.45B	-773.00M	2.07B	4.96B	744.00M
Net Income	2.11B	3.27B	-752.00M	1.36B	3.78B	499.00M
Balance Sheet
Total Assets	415.27B	390.83B	372.41B	334.22B	387.30B	365.95B
Cash, Cash Equivalents and Short-Term Investments	33.91B	26.72B	92.10B	103.08B	121.36B	124.75B
Total Debt	5.77B	6.36B	6.12B	6.46B	6.63B	6.66B
Total Liabilities	404.82B	382.56B	365.52B	329.12B	367.03B	343.25B
Stockholders Equity	10.45B	8.27B	6.89B	5.10B	20.27B	22.70B
Cash Flow
Free Cash Flow	-178.00M	-2.01B	-2.07B	3.61B	-217.00M	534.00M
Operating Cash Flow	-178.00M	-2.01B	-2.07B	3.61B	-217.00M	534.00M
Investing Cash Flow	-817.00M	821.00M	-3.33B	-11.65B	-3.58B	-9.48B
Financing Cash Flow	5.65B	3.62B	5.43B	8.77B	4.71B	8.09B

Lincoln National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNC, the sentiment is Positive. The current price of 45.77 is above the 20-day moving average (MA) of 43.73, above the 50-day MA of 41.60, and above the 200-day MA of 36.90, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNC.

Lincoln National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	77 Outperform	$4.19B	9.33	10.12%	2.91%	-4.58%	―
BHF	74 Outperform	$3.71B	4.40	16.27%	―	27.71%	―
JXN	73 Outperform	$7.31B	14.88	5.50%	2.98%	24.94%	―
CNO	72 Outperform	$4.15B	15.23	11.12%	1.54%	-1.61%	15.79%
LNC	71 Outperform	$8.76B	4.11	21.66%	3.93%	35.76%	636.97%
GL	68 Neutral	$11.35B	10.31	22.28%	0.74%	3.73%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Lincoln National Corporate Events

Lincoln National Completes $500M Senior Notes Offering

On November 3, 2025, Lincoln National Corporation entered into an Underwriting Agreement with several financial institutions to sell $500 million of 5.350% Senior Notes due 2035 in a public offering. The offering was completed on November 10, 2025, with the company planning to use the proceeds to repay existing debt and for general corporate purposes, thereby potentially strengthening its financial position and operational flexibility.

Lincoln National Reports Strong Q3 2025 Financial Results

On October 30, 2025, Lincoln Financial reported strong financial results for the third quarter of 2025, showcasing momentum and balanced growth across its business segments. The company achieved a net income of $411 million, or $2.12 per diluted share, and an adjusted operating income of $397 million, or $2.04 per diluted share. The results were driven by growth in annuities, life insurance, group protection, and retirement plan services, with each segment contributing to the company’s strategic priorities and robust sales performance. Lincoln Financial’s focus on capital flexibility and operational efficiencies positions it for sustained growth and long-term shareholder value.