LNC - Lincoln National Q4: Long Turnaround May Leave Shares Languishing

2024-03-07 17:46:03 ET

Summary

• Lincoln National shares have underperformed in the past year, losing about 12% despite a strong bull market.
• The company's Q4 report showed mixed results, with some units performing better than others.
• Lincoln's weak capital position and poor free cash flow generation have been major challenges for the company.
• While capital is improved, free cash flow will stay subdued due to poor returns in its Life unit.

While they have recovered from lows, Lincoln National ( LNC ) shares have been a significant laggard over the past year, losing about 12% in what has been a strong bull market. With shares down by nearly half over the past decade, LNC has been a perennial disappointment, even with large share repurchases (largely executed at higher prices). I last wrote about Lincoln in September , when I rated shares a sell. Since that recommendation, shares have returned 9%, underperforming the S&P 500’s 15+% rally, a level of underperformance I view as consistent with the recommendation. Still, with shares offering a ~7% yield, LNC could be a temping “value” stock, making now an opportune time to review the company. I continue to reach a negative conclusion and offer a Sell rating in this article....

For further details see: