Lincoln Educational Services Corporation Common Stock (LINC)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 10.6% above cost of capital
• Revenue growth of 19.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($10) with negative 314% margin of safety—limited downside protection

AI Analysis

Lincoln Educational Services Corporation Common Stock is a micro-cap consumer defensive company valued at $1.3 billion. The business generates $518 million in annual revenue with a 2.5% net margin. From a quality standpoint, Lincoln shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and healthy Altman Z-Score of 3.2. On valuation, the stock is commanding a steep 61.9x multiple, with trades far above its Graham Number ($10) with no margin of safety. Growth dynamics show revenue growing at 19.7% and profit growth of 85.8%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Lincoln's 20% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 62x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer