ASX:LAU

Stock Analysis Report

Executive Summary

Lindsay Australia Limited, together with its subsidiaries, provides integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, rural, agriculture, and horticultural industries in Australia.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Share Price & News

How has Lindsay Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

LAU

-0.7%

AU Transportation

0.4%

AU Market


1 Year Return

-5.3%

LAU

30.7%

AU Transportation

9.8%

AU Market

Return vs Industry: LAU underperformed the Australian Transportation industry which returned 30.7% over the past year.

Return vs Market: LAU underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

LAUIndustryMarket
7 Day-2.7%-0.7%0.4%
30 Day2.9%-3.4%-1.3%
90 Day9.1%4.6%-0.5%
1 Year0.3%-5.3%37.0%30.7%16.1%9.8%
3 Year-2.7%-16.3%51.9%42.4%36.1%17.9%
5 Year25.8%-1.4%57.5%40.8%49.4%15.7%

Price Volatility Vs. Market

How volatile is Lindsay Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lindsay Australia undervalued compared to its fair value and its price relative to the market?

11.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LAU (A$0.36) is trading above our estimate of fair value (A$0.34)

Significantly Below Fair Value: LAU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAU is good value based on its PE Ratio (12x) compared to the Transportation industry average (17.5x).

PE vs Market: LAU is good value based on its PE Ratio (12x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LAU is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LAU is good value based on its PB Ratio (1.1x) compared to the XO Transportation industry average (2.2x).


Next Steps

Future Growth

How is Lindsay Australia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAU's forecast earnings growth (7.6% per year) is above the savings rate (2.3%).

Earnings vs Market: LAU's earnings (7.6% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: LAU's earnings are forecast to grow, but not significantly.

Revenue vs Market: LAU's revenue (3.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: LAU's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAU's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Lindsay Australia performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LAU's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: LAU's earnings growth over the past year (10.2%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: LAU earnings growth over the past year (10.2%) exceeded the Transportation industry 5.1%.


Return on Equity

High ROE: LAU's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: LAU's Return on Assets is below or equal to the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: LAU has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Lindsay Australia's financial position?


Financial Position Analysis

Short Term Liabilities: LAU's short term assets (A$90.8M) do not cover its short term liabilities (A$90.9M)

Long Term Liabilities: LAU's short term assets (90.8M) exceeds its long term liabilities (85.5M)


Debt to Equity History and Analysis

Debt Level: LAU's debt to equity ratio (21.3%) is considered satisfactory

Reducing Debt: LAU's debt to equity ratio has reduced from 32.5% to 21.3% over the past 5 years.

Debt Coverage: LAU's debt is well covered by operating cash flow (175.6%).

Interest Coverage: LAU's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: LAU has a high level of physical assets or inventory.

Debt Coverage by Assets: LAU's debt is covered by short term assets (assets are 4.526910x debt).


Next Steps

Dividend

What is Lindsay Australia's current dividend yield, its reliability and sustainability?

6.11%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years6.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LAU's dividend (6.11%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: LAU's dividend (6.11%) is in the top 25% of dividend payers in the Australian market (5.59%)

Stable Dividend: LAU's dividend payments have been volatile in the past 10 years.

Growing Dividend: LAU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.9%), LAU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LAU's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

What is the CEO of Lindsay Australia's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Michael Lindsay (61yo)

17.8yrs

Tenure

AU$1,148,602

Compensation

Mr. Michael Kim Lindsay has been Chief Executive Officer and Managing Director at Lindsay Australia Limited since 2002. Mr. Lindsay founded Lindsay Rural Pty Ltd., a subsidiary of Lindsay Australia in 1983 ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD786.34K) is about average for companies of similar size in the Australian market ($USD257.37K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: LAU's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

16.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: LAU's board of directors are seasoned and experienced ( 16.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Michael Lindsay (61yo)

    MD, CEO & Executive Director

    • Tenure: 17.8yrs
    • Compensation: AU$1.15m
  • B. Anthony

    Executive

    • Tenure: 0yrs
    • Compensation: AU$151.65k
  • Broderick Jones

    • Tenure: 0yrs
    • Compensation: AU$341.39k
  • R. Hess

    Executive

    • Tenure: 0yrs
    • Compensation: AU$191.53k
  • R. Dummer

    Executive

    • Tenure: 0yrs
    • Compensation: AU$164.10k
  • Justin Green

    CFO & Company Secretary

    • Tenure: 1.8yrs
    • Compensation: AU$355.56k
  • C. Baker

    General Manager of Rural

    • Tenure: 2.3yrs
    • Compensation: AU$443.34k

Board Members

  • John Pressler (77yo)

    Non-Executive Chairman

    • Tenure: 22.8yrs
    • Compensation: AU$92.03k
  • Richard Anderson (73yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: AU$69.02k
  • Michael Lindsay (61yo)

    MD, CEO & Executive Director

    • Tenure: 17.8yrs
    • Compensation: AU$1.15m
  • Robert Green (62yo)

    Non-Executive Director

    • Tenure: 0.2yrs
  • Anthony Kelly

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: AU$11.50k

Company Information

Lindsay Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lindsay Australia Limited
  • Ticker: LAU
  • Exchange: ASX
  • Founded:
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: AU$110.544m
  • Shares outstanding: 298.77m
  • Website: https://www.lindsayaustralia.com.au

Number of Employees


Location

  • Lindsay Australia Limited
  • 152 Postle Street
  • Acacia Ridge
  • Queensland
  • 4110
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1994
LAUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1994

Biography

Lindsay Australia Limited, together with its subsidiaries, provides integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, rural, agriculture, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:32
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.