Recent News
Nov. 11, 2025 — Barrington Research maintained coverage of Lincoln Educational Services with an Outperform rating and published a one‑year price target range implying upside versus the recent share price. The research note reiterated confidence in the company’s growth trajectory following recent operational updates.
Technical Analysis
Directional indicators show no established trend: ADX sits at 17.13, indicating a lack of a strong market trend and limiting conviction for breakout directional trades.
DI+ experienced a peak & reversal, a bearish signal that indicates weakened upside pressure. DI‑ has been decreasing, a bullish signal that indicates waning downside pressure; together these DI moves produce a mixed directional picture that aligns with the low ADX.
MACD sits at -0.24 with the MACD line above the signal line (-0.31), which registers as a bullish crossover signal; however, the MACD trend shows a peak & reversal, indicating bearish momentum developing beneath that crossover. The combination suggests short‑term momentum conflict rather than a clear trending thrust.
MRO reads 0.53, a positive value that indicates price currently trades above WMDST’s target framework and therefore carries an increased likelihood of mean reversion toward the target. The oscillator’s small absolute magnitude signals limited immediate pressure but favors downside toward the valuation target.
RSI rests at 46.12 with a peak & reversal pattern, signaling recent loss of upward momentum and a bias toward consolidation or modest downside from current levels.
Price sits near $19.91, below the 50‑day average ($21.33) and the 12‑day EMA ($20.33), and marginally below the 200‑day average ($20.09). Bollinger band mid/upper metrics and the super trend lower support align roughly with $18.89–$21.40, framing a near‑term range that technical indicators suggest will more likely consolidate or drift lower than produce a sustained breakout higher.
Fundamental Analysis
Revenue totaled $141,389,000 with revenue growth year‑over‑year of 91.50% and reported revenue growth of 21.39%; the company shows strong top‑line expansion for the period reported. Gross profit measured $84,106,000 and gross margin stands at 59.49% (up 2.57% YoY), supporting operating leverage as student population and tuition mix shift.
EBIT registered $6,285,000 and EBITDA $11,328,000, producing an EBIT margin of 4.45%. EBIT margin improved QoQ by 79.23% but fell YoY by 19.09%. The company’s EBIT margin sits below the industry peer mean of 19.08% and below the industry peer median of 20.41%, indicating margins lag typical peer levels despite recent QoQ improvement.
Earnings per share came in at $0.20 versus an estimate of $0.12, generating an EPS surprise of 66.67% and an EPS beat of $0.08. Forward EPS stands at $0.1525 and forward P/E measures 137.74x, reflecting elevated forward multiples versus current earnings expectations.
Valuation multiples present mixed signals: trailing P/E equals 105.24x (above the industry peer mean of 48.76x), while price‑to‑book sits at 3.58x, below the industry peer mean of 4.18x. Price‑to‑sales registers 4.71x, below the industry peer mean of 11.86x. Free cash flow totaled $2,031,000 with a free cash flow yield of 0.31%, slightly above the industry peer mean of 0.26% but still low in absolute terms. Enterprise multiple reached 74.85x, reflecting elevated valuation relative to operating earnings.
Balance‑sheet and liquidity metrics highlight leverage and working capital pressure: total debt equals $195,727,000 with debt‑to‑equity of 1.05 and debt‑to‑EBITDA of 17.28x. Debt‑to‑assets reads 41.92%, above the industry peer mean of 11.95%. Current ratio stands at 0.81, below the industry peer mean of 1.73, and quick ratio at 0.77 sits marginally below the industry peer low of 0.79. Cash and short‑term investments total $13,480,000 while operating cash flow measured $23,882,000; net working capital remains negative at -$18,547,000. Cash conversion cycle is -28.19 days, which sits well below the industry peer mean of 8.82 days and points to efficient collections and payables timing.
Returns remain modest: return on equity equals 2.04% and return on assets 0.83%, both below their respective industry peer means. Interest coverage equals 6.34x, a positive sign for near‑term servicing of interest but below the industry peer mean of 22.03x.
WMDST valuation assessment: despite robust revenue expansion and a healthy gross margin, elevated P/E and enterprise multiples, thin free cash flow yield, and high leverage produce an over‑valued characterization under WMDST’s framework.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-10 |
| NEXT REPORT DATE: | 2026-02-09 |
| CASH FLOW | Begin Period Cash Flow | $ 16.7 M |
| Operating Cash Flow | $ 23.9 M | |
| Capital Expenditures | $ -21.85 M | |
| Change In Working Capital | $ -4.51 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -3.22 M | |
| End Period Cash Flow | $ 13.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 141.4 M | |
| Forward Revenue | $ 44.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 57.3 M | |
| Depreciation | $ 5.0 M | |
| Depreciation and Amortization | $ 5.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 135.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 84.1 M | |
| EBITDA | $ 11.3 M | |
| EBIT | $ 6.3 M | |
| Operating Income | $ 6.3 M | |
| Interest Income | — | |
| Interest Expense | $ 991.0 K | |
| Net Interest Income | $ -991.00 K | |
| Income Before Tax | $ 5.3 M | |
| Tax Provision | $ 1.5 M | |
| Tax Rate | 28.2 % | |
| Net Income | $ 3.8 M | |
| Net Income From Continuing Operations | $ 3.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.12 | |
| EPS Actual | $ 0.20 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 66.667 % | |
| Forward EPS | $ 0.15 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 466.9 M | |
| Intangible Assets | $ 10.7 M | |
| Net Tangible Assets | $ 175.1 M | |
| Total Current Assets | $ 77.3 M | |
| Cash and Short-Term Investments | $ 13.5 M | |
| Cash | $ 13.5 M | |
| Net Receivables | $ 51.1 M | |
| Inventory | $ 3.1 M | |
| Long-Term Investments | $ 1.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 35.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 95.9 M | |
| Net Debt | — | |
| Total Debt | $ 195.7 M | |
| Total Liabilities | $ 281.1 M | |
| EQUITY | ||
| Total Equity | $ 185.9 M | |
| Retained Earnings | $ 86.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.88 | |
| Shares Outstanding | 31.624 M | |
| Revenue Per-Share | $ 4.47 | |
| VALUATION | Market Capitalization | $ 665.6 M |
| Enterprise Value | $ 847.9 M | |
| Enterprise Multiple | 74.849 | |
| Enterprise Multiple QoQ | -35.644 % | |
| Enterprise Multiple YoY | 91.353 % | |
| Enterprise Multiple IPRWA | high: 84.509 LINC: 74.849 mean: 54.566 median: 52.588 low: -3.858 |
|
| EV/R | 5.997 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.512 | |
| Asset To Liability | 1.661 | |
| Debt To Capital | 0.513 | |
| Debt To Assets | 0.419 | |
| Debt To Assets QoQ | -0.861 % | |
| Debt To Assets YoY | 1538.023 % | |
| Debt To Assets IPRWA | high: 0.597 LINC: 0.419 mean: 0.119 median: 0.098 low: 0.003 |
|
| Debt To Equity | 1.053 | |
| Debt To Equity QoQ | 0.605 % | |
| Debt To Equity YoY | 1631.251 % | |
| Debt To Equity IPRWA | LINC: 1.053 high: 0.595 mean: 0.226 median: 0.198 low: 0.012 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.582 | |
| Price To Book QoQ | -2.361 % | |
| Price To Book YoY | 52.388 % | |
| Price To Book IPRWA | high: 7.533 mean: 4.184 median: 3.717 LINC: 3.582 low: 0.053 |
|
| Price To Earnings (P/E) | 105.243 | |
| Price To Earnings QoQ | -76.039 % | |
| Price To Earnings YoY | 7.818 % | |
| Price To Earnings IPRWA | high: 122.67 LINC: 105.243 mean: 48.765 median: 32.773 low: -12.376 |
|
| PE/G Ratio | 0.351 | |
| Price To Sales (P/S) | 4.708 | |
| Price To Sales QoQ | -17.262 % | |
| Price To Sales YoY | 34.839 % | |
| Price To Sales IPRWA | high: 21.866 mean: 11.857 median: 10.448 LINC: 4.708 low: 0.093 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 137.739 | |
| Forward PE/G | 0.459 | |
| Forward P/S | 14.834 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.495 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.309 | |
| Asset Turnover Ratio QoQ | 16.147 % | |
| Asset Turnover Ratio YoY | 4.138 % | |
| Asset Turnover Ratio IPRWA | high: 0.514 LINC: 0.309 mean: 0.2 median: 0.193 low: 0.129 |
|
| Receivables Turnover | 2.874 | |
| Receivables Turnover Ratio QoQ | 16.637 % | |
| Receivables Turnover Ratio YoY | 21.464 % | |
| Receivables Turnover Ratio IPRWA | high: 5.76 LINC: 2.874 median: 2.711 mean: 2.666 low: 0.907 |
|
| Inventory Turnover | 15.08 | |
| Inventory Turnover Ratio QoQ | 11.159 % | |
| Inventory Turnover Ratio YoY | -20.667 % | |
| Inventory Turnover Ratio IPRWA | LINC: 15.08 high: 14.777 mean: 8.179 median: 7.631 low: 3.784 |
|
| Days Sales Outstanding (DSO) | 31.749 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -28.187 | |
| Cash Conversion Cycle Days QoQ | 27.496 % | |
| Cash Conversion Cycle Days YoY | 755.331 % | |
| Cash Conversion Cycle Days IPRWA | high: 95.956 mean: 8.82 median: 2.199 low: -14.413 LINC: -28.187 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -7.623 | |
| CapEx To Revenue | -0.155 | |
| CapEx To Depreciation | -4.333 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 193.9 M | |
| Net Invested Capital | $ 193.9 M | |
| Invested Capital | $ 193.9 M | |
| Net Tangible Assets | $ 175.1 M | |
| Net Working Capital | $ -18.55 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.141 | |
| Current Ratio | 0.807 | |
| Current Ratio QoQ | -10.61 % | |
| Current Ratio YoY | -48.677 % | |
| Current Ratio IPRWA | high: 4.471 mean: 1.734 median: 1.653 LINC: 0.807 low: 0.807 |
|
| Quick Ratio | 0.774 | |
| Quick Ratio QoQ | -9.041 % | |
| Quick Ratio YoY | -49.545 % | |
| Quick Ratio IPRWA | high: 6.694 mean: 2.045 median: 1.627 low: 0.79 LINC: 0.774 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.278 | |
| Cost Of Debt | 0.37 % | |
| Interest Coverage Ratio | 6.342 | |
| Interest Coverage Ratio QoQ | 78.474 % | |
| Interest Coverage Ratio YoY | -33.512 % | |
| Interest Coverage Ratio IPRWA | high: 84.737 median: 27.42 mean: 22.025 LINC: 6.342 low: -1.748 |
|
| Operating Cash Flow Ratio | 0.078 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 67.343 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.386 % | |
| Revenue Growth | 21.391 % | |
| Revenue Growth QoQ | -2536.333 % | |
| Revenue Growth YoY | 91.504 % | |
| Revenue Growth IPRWA | high: 22.509 % median: 22.509 % LINC: 21.391 % mean: 15.824 % low: -26.045 % |
|
| Earnings Growth | 300.0 % | |
| Earnings Growth QoQ | -650.005 % | |
| Earnings Growth YoY | -140.0 % | |
| Earnings Growth IPRWA | LINC: 300.0 % high: 225.0 % median: 150.0 % mean: 115.695 % low: -300.0 % |
|
| MARGINS | ||
| Gross Margin | 59.486 % | |
| Gross Margin QoQ | -0.57 % | |
| Gross Margin YoY | 2.566 % | |
| Gross Margin IPRWA | high: 88.469 % LINC: 59.486 % median: 58.122 % mean: 55.495 % low: 20.91 % |
|
| EBIT Margin | 4.445 % | |
| EBIT Margin QoQ | 79.234 % | |
| EBIT Margin YoY | -19.094 % | |
| EBIT Margin IPRWA | high: 29.284 % median: 20.409 % mean: 19.078 % LINC: 4.445 % low: -51.547 % |
|
| Return On Sales (ROS) | 4.452 % | |
| Return On Sales QoQ | 97.779 % | |
| Return On Sales YoY | -18.966 % | |
| Return On Sales IPRWA | high: 27.787 % median: 20.409 % mean: 18.924 % LINC: 4.452 % low: -51.547 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 2.0 M | |
| Free Cash Flow Yield | 0.305 % | |
| Free Cash Flow Yield QoQ | -107.749 % | |
| Free Cash Flow Yield YoY | -108.853 % | |
| Free Cash Flow Yield IPRWA | high: 2.953 % LINC: 0.305 % mean: 0.262 % median: 0.229 % low: -3.352 % |
|
| Free Cash Growth | -107.785 % | |
| Free Cash Growth QoQ | 1298.171 % | |
| Free Cash Growth YoY | -126.378 % | |
| Free Cash Growth IPRWA | high: 181.377 % median: 37.457 % mean: 22.47 % LINC: -107.785 % low: -186.47 % |
|
| Free Cash To Net Income | 0.535 | |
| Cash Flow Margin | 5.278 % | |
| Cash Flow To Earnings | 1.964 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.831 % | |
| Return On Assets QoQ | 134.085 % | |
| Return On Assets YoY | -19.006 % | |
| Return On Assets IPRWA | high: 5.867 % median: 3.044 % mean: 2.735 % LINC: 0.831 % low: -4.464 % |
|
| Return On Capital Employed (ROCE) | 1.694 % | |
| Return On Equity (ROE) | 0.02 | |
| Return On Equity QoQ | 137.674 % | |
| Return On Equity YoY | -12.124 % | |
| Return On Equity IPRWA | high: 0.137 median: 0.061 mean: 0.053 LINC: 0.02 low: -0.12 |
|
| DuPont ROE | 2.073 % | |
| Return On Invested Capital (ROIC) | 2.327 % | |
| Return On Invested Capital QoQ | 108.326 % | |
| Return On Invested Capital YoY | -122.987 % | |
| Return On Invested Capital IPRWA | high: 14.048 % median: 5.742 % mean: 5.176 % LINC: 2.327 % low: -5.963 % |
|