ASX:LAU

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Mediocre balance sheet second-rate 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

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.


Market Performance


7 Day Return

0%

LAU

-0.4%

AU Transportation

1.3%

AU Market


1 Year Return

-5.7%

LAU

5.6%

AU Transportation

-1.0%

AU Market

Return vs Industry: LAU underperformed the Australian Transportation industry which returned 5.6% over the past year.

Return vs Market: LAU underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

LAUIndustryMarket
7 Day0%-0.4%1.3%
30 Day-4.3%10.1%6.0%
90 Day-2.9%8.3%6.8%
1 Year-1.2%-5.7%7.5%5.6%2.4%-1.0%
3 Year-5.1%-18.5%29.3%22.2%22.9%7.6%
5 Year-18.2%-35.9%55.6%41.4%55.7%24.6%

Long-Term 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?

18.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LAU (A$0.33) is trading above our estimate of fair value (A$0.31)

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


Price To Earnings Ratio

PE vs Industry: LAU is poor value based on its PE Ratio (18.5x) compared to the XX Transportation industry average (17.1x).

PE vs Market: LAU is good value based on its PE Ratio (18.5x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LAU is good value based on its PB Ratio (1.1x) compared to the XX Transportation industry average (1.2x).


Next Steps

Future Growth

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

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAU's forecast earnings growth (15.5% per year) is above the savings rate (2.3%).

Earnings vs Market: LAU's earnings (15.5% per year) are forecast to grow slower than the Australian market (17.9% per year).

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

Revenue vs Market: LAU's revenue (3.3% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: LAU's revenue (3.3% 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 (9.2%).


Next Steps

Past Performance

How has Lindsay Australia performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAU has a large one-off gain of A$1.9M impacting its June 30 2020 financial results.

Growing Profit Margin: LAU's current net profit margins (1.3%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: LAU's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: LAU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LAU had negative earnings growth (-40.1%) over the past year, making it difficult to compare to the Transportation industry average (-17%).


Return on Equity

High ROE: LAU's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Lindsay Australia's financial position?


Financial Position Analysis

Short Term Liabilities: LAU's short term assets (A$87.0M) do not cover its short term liabilities (A$91.5M).

Long Term Liabilities: LAU's short term assets (A$87.0M) do not cover its long term liabilities (A$177.7M).


Debt to Equity History and Analysis

Debt Level: LAU's debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: LAU's debt to equity ratio has reduced from 28.6% to 27.2% over the past 5 years.

Debt Coverage: LAU's debt is well covered by operating cash flow (152.4%).

Interest Coverage: LAU's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAU's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: LAU's dividend (4.55%) is low compared to the top 25% of dividend payers in the Australian market (5.06%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.1%), LAU's 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 (67.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Michael Lindsay (62 yo)

18.83yrs

Tenure

AU$1,209,374

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 ($USD880.12K) is above average for companies of similar size in the Australian market ($USD279.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Lindsay
MD, CEO & Executive Director18.83yrsAU$1.21m3.95%
A$ 4.0m
Justin Green
CFO & Company Secretary2.83yrsAU$368.62k0.011%
A$ 10.6k
Broderick Jones
General Legal Counsel & Company Secretaryno dataAU$352.87kno data
C. Baker
General Manager of Rural3.33yrsAU$462.99k0.022%
A$ 22.1k
B. Anthony
Executiveno dataAU$151.65kno data
R. Hess
Executiveno dataAU$191.53kno data
R. Dummer
Executiveno dataAU$164.10kno data

3.3yrs

Average Tenure

Experienced Management: LAU's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Lindsay
MD, CEO & Executive Director18.83yrsAU$1.21m3.95%
A$ 4.0m
Richard Anderson
Independent Non-Executive Chairmanno dataAU$69.11k0.13%
A$ 131.3k
Robert Green
Non-Executive Independent Director1.25yrsAU$57.61kno data
Anthony Kelly
Non-Executive Director1.5yrsAU$69.11kno data

1.5yrs

Average Tenure

63yo

Average Age

Experienced Board: LAU's board of directors are not considered experienced ( 1.5 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.


Top Shareholders

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: 1993
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: AU$100.347m
  • Shares outstanding: 299.54m
  • 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 service, fresh produce, rural, agriculture, and h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:32
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.