Lindsay Australia (ASX:LAU) - Share price, News & Analysis

Q: What is the Fair Price of LAU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LAU (A$0.39) is trading above our estimate of [[fair value]] (A$0.38)

LAU fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	1/6
Financial Health	4/6
Dividends	4/6

LAU Stock Overview

Rewards

Earnings are forecast to grow 14.1% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Does not have a meaningful market cap (A$118M)

Lindsay Australia Competitors

Kelsian Group

ASX:KLS

AU$1.3b

Silk Logistics Holdings

ASX:SLH

AU$157.4m

CTI Logistics

ASX:CLX

AU$74.5m

K&S

ASX:KSC

AU$229.4m

Price History & Performance

Summary of all time highs, changes and price drops for Lindsay Australia
Historical stock prices
Current Share Price	AU$0.39
52 Week High	AU$0.48
52 Week Low	AU$0.36
Beta	0.14
1 Month Change	-3.75%
3 Month Change	-8.33%
1 Year Change	2.67%
3 Year Change	13.24%
5 Year Change	1.32%
Change since IPO	-66.52%

Shareholder Returns

	LAU	AU Transportation	AU Market
7D	-2.5%	-4.1%	1.4%
1Y	2.7%	-8.3%	-11.3%

Return vs Industry: LAU exceeded the Australian Transportation industry which returned -8.3% over the past year.

Return vs Market: LAU exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is LAU's price volatile compared to industry and market?
LAU volatility
LAU Average Weekly Movement	4.9%
Transportation Industry Average Movement	5.3%
Market Average Movement	9.7%
10% most volatile stocks in AU Market	16.3%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: LAU is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LAU's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	1,467	Michael Lindsay	https://www.lindsayaustralia.com.au

Lindsay Australia Limited, together with its subsidiaries, provides integrated transport, logistics, and rural supply services to the food processing, food service, fresh produce, rural, agriculture, and horticultural industries in Australia. The company operates through Transport and Rural segments. The Transport segment is involved in the cartage of general and refrigerated products, and ancillary sales, as well as warehouse and distribution activities.

Lindsay Australia Fundamentals Summary

How do Lindsay Australia's earnings and revenue compare to its market cap?
LAU fundamental statistics
Market Cap	AU$117.78m
Earnings (TTM)	AU$6.98m
Revenue (TTM)	AU$493.89m

16.7x

P/E Ratio

0.2x

P/S Ratio

Is LAU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAU income statement (TTM)
Revenue	AU$493.89m
Cost of Revenue	AU$335.81m
Gross Profit	AU$158.08m
Other Expenses	AU$151.10m
Earnings	AU$6.98m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.023
Gross Margin	32.01%
Net Profit Margin	1.41%
Debt/Equity Ratio	24.4%

How did LAU perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

82%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LAU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LAU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LAU. This is calculated by dividing LAU's market cap by their current preferred multiple.
What is LAU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$117.78m

LAU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	11.8x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does LAU's PE Ratio compare to its peers?

LAU PE Ratio vs Peers

The above table shows the PE ratio for LAU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25.4x
KLS Kelsian Group	48.1x	21.6%	AU$1.3b
SLH Silk Logistics Holdings	21.2x	31.9%	AU$157.4m
CLX CTI Logistics	8.7x	n/a	AU$74.5m
KSC K&S	24.3x	n/a	AU$229.4m
LAU Lindsay Australia	16.7x	14.1%	AU$117.8m

Forward PE

Price-To-Earnings vs Peers: LAU is good value based on its Price-To-Earnings Ratio (16.7x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

How does LAU's PE Ratio compare vs other companies in the Global Transportation Industry?

Price-To-Earnings vs Industry: LAU is expensive based on its Price-To-Earnings Ratio (16.7x) compared to the Global Transportation industry average (14.8x)

Price to Earnings Ratio vs Fair Ratio

What is LAU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LAU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.7x
Fair PE Ratio	20.5x

Price-To-Earnings vs Fair Ratio: LAU is good value based on its Price-To-Earnings Ratio (16.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

Share Price vs Fair Value

What is the Fair Price of LAU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LAU (A$0.39) is trading above our estimate of fair value (A$0.38)

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

Price to Earnings Growth Ratio

PEG Ratio: LAU is poor value based on its PEG Ratio (1.2x)

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAU's forecast earnings growth (14.1% per year) is above the savings rate (1.8%).

Earnings vs Market: LAU's earnings (14.1% per year) are forecast to grow faster than the Australian market (6% per year).

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

Revenue vs Market: LAU's revenue (4.4% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: LAU's revenue (4.4% 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 (14.4%).

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Past Performance

How has Lindsay Australia performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAU has a large one-off gain of A$2.1M impacting its December 31 2021 financial results.

Growing Profit Margin: LAU's current net profit margins (1.4%) are lower than last year (1.5%).

Past Earnings Growth Analysis

Earnings Trend: LAU's earnings have declined by 9% per year over the past 5 years.

Accelerating Growth: LAU's earnings growth over the past year (15.4%) exceeds its 5-year average (-9% per year).

Earnings vs Industry: LAU earnings growth over the past year (15.4%) underperformed the Transportation industry 34.6%.

Return on Equity

High ROE: LAU's Return on Equity (7%) is considered low.

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Financial Health

How is Lindsay Australia's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LAU's short term assets (A$127.6M) exceed its short term liabilities (A$114.3M).

Long Term Liabilities: LAU's short term assets (A$127.6M) do not cover its long term liabilities (A$180.6M).

Debt to Equity History and Analysis

Debt Level: LAU's net debt to equity ratio (7.1%) is considered satisfactory.

Reducing Debt: LAU's debt to equity ratio has reduced from 32% to 24.4% over the past 5 years.

Debt Coverage: LAU's debt is well covered by operating cash flow (177.6%).

Interest Coverage: LAU's interest payments on its debt are not well covered by EBIT (2.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LAU's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: LAU's dividend (4.94%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (81.7%), LAU's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.5%), LAU's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure

CEO

Michael Lindsay (63 yo)

20.42yrs

Tenure

AU$1,038,047

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 ($USD721.47K) is above average for companies of similar size in the Australian market ($USD288.24K).

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

Leadership Team

Experienced Management: LAU's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: LAU's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30