ATGE - Lincoln Educational Services Is Trading At 2.0x Growing EBITDA
Background
Lincoln Educational Services provides for-profit education focusing on technical schools for verticals like auto, electrical and HVAC, as well as healthcare courses. During a recession when unemployment rises, workers seek secondary education in greater numbers to stand out in a tightening job market. The demand is directly proportional to the unemployment rate. As a fixed cost business, LINC’s EBITDA goes parabolic during recessions.
It’s no secret that COVID-19 has crushed the US economy, resulting in millions of unemployed workers. The damage to the work force exceeds what occurred in 2009, and the pace of