LNC
CyclicalsValuation Breakdown
Cyclical companies (chemicals, oil & gas, basic resources) have earnings that swing dramatically with commodity prices and economic cycles. Valuing them on a single year's earnings is misleading: they look cheap at peaks and expensive at troughs. This model uses 7-year median EBITDA ("mid-cycle" earnings) and a 7-year median EV/EBITDA multiple to estimate what the firm is worth at a normal point in the cycle.
Valuation Track Record
Retroactive intrinsic value vs actual close price — LNC
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2020
LNC exhibits several concerning financial metrics, particularly in earnings quality, which raises red flags regarding potential financial manipulation. The high concentration of state ownership also poses risks related to governance and operational transparency.
- Beneish M-Score of -2.8514 indicates a low likelihood of manipulation, but the earnings quality score of 31.3/100 suggests significant issues with cash conversion and revenue recognition.
- Earnings Quality metrics show eq_cash_conv and eq_receivables at 0.0/100, indicating severe challenges in converting earnings to cash and managing receivables effectively.
- DSRI of 0.8985 suggests that inventory levels are well managed relative to sales, which is a positive indicator in the context of operational efficiency.
The overwhelming state ownership (90.7% by local government entities) can lead to potential conflicts of interest and reduced accountability, which may affect minority shareholders' rights.
Investors should exercise caution and closely monitor LNC's financial disclosures and governance practices. Consider waiting for improved earnings quality metrics before making any investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LNC — hover nodes for intel, click to navigate