Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally.
Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand.
Lindsay Fundamentals Summary
How do Lindsay's earnings and revenue compare to its market cap?
Is LNN 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 LNN?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for LNN. This is calculated by dividing LNN's market cap by their current
preferred multiple.
What is LNN's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$1.45b
LNN 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.
Price-To-Earnings vs Industry: LNN is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the US Machinery industry average (20.2x)
Price to Earnings Ratio vs Fair Ratio
What is LNN'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.
LNN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
27.1x
Fair PE Ratio
18.2x
Price-To-Earnings vs Fair Ratio: LNN is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).
Share Price vs Fair Value
What is the Fair Price of LNN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LNN ($131.88) is trading below our estimate of fair value ($222.27)
Significantly Below Fair Value: LNN is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: LNN is poor value based on its PEG Ratio (1.7x)
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Future Growth
How is Lindsay forecast to perform in the next 1 to 3 years based on estimates from 3 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
15.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LNN's forecast earnings growth (15.5% per year) is above the savings rate (1.9%).
Earnings vs Market: LNN's earnings (15.5% per year) are forecast to grow faster than the US market (12.8% per year).
High Growth Earnings: LNN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LNN's revenue (3% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: LNN's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LNN's Return on Equity is forecast to be high in 3 years time
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Past Performance
How has Lindsay 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
23.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LNN has a high level of non-cash earnings.
Growing Profit Margin: LNN's current net profit margins (7.3%) are lower than last year (9.5%).
Past Earnings Growth Analysis
Earnings Trend: LNN's earnings have grown significantly by 23.9% per year over the past 5 years.
Accelerating Growth: LNN's earnings growth over the past year (3.7%) is below its 5-year average (23.9% per year).
Earnings vs Industry: LNN earnings growth over the past year (3.7%) underperformed the Machinery industry 23.3%.
Return on Equity
High ROE: LNN's Return on Equity (14%) is considered low.
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Financial Health
How is Lindsay's financial position?
Financial Health Score
5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: LNN's short term assets ($475.4M) exceed its short term liabilities ($173.8M).
Long Term Liabilities: LNN's short term assets ($475.4M) exceed its long term liabilities ($157.3M).
Debt to Equity History and Analysis
Debt Level: LNN's net debt to equity ratio (5.2%) is considered satisfactory.
Reducing Debt: LNN's debt to equity ratio has reduced from 44.4% to 30.4% over the past 5 years.
Debt Coverage: LNN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: LNN's interest payments on its debt are well covered by EBIT (20.1x coverage).
Balance Sheet
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Dividend
What is Lindsay current dividend yield, its reliability and sustainability?
Dividend Score
3/6
Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.03%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LNN's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: LNN's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: LNN's dividends per share have been stable in the past 10 years.
Growing Dividend: LNN's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (27.1%), LNN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: LNN is paying a dividend but the company has no free cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Randy Wood (50 yo)
1.5yrs
Tenure
US$2,203,151
Compensation
Mr. Randy A. Wood has been President and Chief Executive Officer of Lindsay Corporation since January 1, 2021. Mr. Wood had been Chief Operating Officer at Lindsay Corporation since September 01, 2020 unti...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD2.20M) is below average for companies of similar size in the US market ($USD5.53M).
Compensation vs Earnings: Randy's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: LNN's management team is considered experienced (3.6 years average tenure).
Board Members
Experienced Board: LNN's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LNN insiders have only sold shares 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 Corporation's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/07/05 00:00
End of Day Share Price
2022/07/05 00:00
Earnings
2022/05/31
Annual Earnings
2021/08/31
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.