NYSE:LNN

Stock Analysis Report

Executive Summary

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LNN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.8%

LNN

-10.2%

US Machinery

-10.6%

US Market


1 Year Return

8.3%

LNN

-0.7%

US Machinery

5.2%

US Market

Return vs Industry: LNN exceeded the US Machinery industry which returned 2.5% over the past year.

Return vs Market: LNN matched the US Market which returned 10.2% over the past year.


Shareholder returns

LNNIndustryMarket
7 Day-4.8%-10.2%-10.6%
30 Day-0.9%-8.1%-8.5%
90 Day11.4%-8.6%-4.6%
1 Year9.8%8.3%1.1%-0.7%7.4%5.2%
3 Year29.7%24.5%24.0%16.0%31.7%23.2%
5 Year33.1%24.0%52.1%34.0%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

116.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LNN ($101.55) is trading above our estimate of fair value ($72.66)

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


Price To Earnings Ratio

PE vs Industry: LNN is poor value based on its PE Ratio (117.7x) compared to the Machinery industry average (20.4x).

PE vs Market: LNN is poor value based on its PE Ratio (117.7x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: LNN is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: LNN is overvalued based on its PB Ratio (4x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

How is Lindsay forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNN's forecast earnings growth (28.9% per year) is above the savings rate (1.7%).

Earnings vs Market: LNN's earnings (28.9% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNN's revenue (6.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LNN's revenue (6.7% 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


Next Steps

Past Performance

How has Lindsay performed over the past 5 years?

-26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNN has high quality earnings.

Growing Profit Margin: LNN's current net profit margins (2.1%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: LNN's earnings have declined by -26% per year over the past 5 years.

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

Earnings vs Industry: LNN had negative earnings growth (-49.2%) over the past year, making it difficult to compare to the Machinery industry average (2.1%).


Return on Equity

High ROE: LNN's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Lindsay's financial position?


Financial Position Analysis

Short Term Liabilities: LNN's short term assets ($316.6M) exceed its short term liabilities ($84.8M).

Long Term Liabilities: LNN's short term assets ($316.6M) exceed its long term liabilities ($169.0M).


Debt to Equity History and Analysis

Debt Level: LNN's debt to equity ratio (42.5%) is considered high.

Reducing Debt: LNN's debt to equity ratio has increased from 0.4% to 42.5% over the past 5 years.

Debt Coverage: LNN's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: LNN's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: LNN's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNN's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: LNN's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (143.8%), LNN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LNN's dividends in 3 years are forecast to be well covered by earnings (28.5% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Tim Hassinger (57yo)

2.3yrs

Tenure

US$4,271,118

Compensation

Mr. Timothy L. Hassinger, also known as Tim, has been the Chief Executive Officer and President of Lindsay Corporation since October 16, 2017. Mr. Hassinger served as the Chief Executive Officer and Presid ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD4.27M) is above average for companies of similar size in the US market ($USD2.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Hassinger
President2.3yrsUS$4.27m0.21% $2.3m
Brian Ketcham
Senior VP & CFO3.8yrsUS$948.60k0.040% $434.1k
J. Marion
President of Infrastructure Division3.8yrsUS$702.33k0.031% $337.1k
Randy Wood
President of Irrigation Division3.8yrsUS$923.80k0.10% $1.1m
David Salen
Chief Operating Officer0yrsno datano data
Lori Zarkowski
Chief Accounting Officer & Corporate Controller8.5yrsno datano data
Eric Talmadge
Senior VP & Chief Information Officer7.2yrsno datano data
Eric Arneson
Senior VP11.8yrsno datano data
Kelly Staup
Senior Vice President of Human Resources2.1yrsno datano data
Gustavo Oberto
President of Elecsys International0.4yrsno datano data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: LNN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Hassinger
President2.3yrsUS$4.27m0.21% $2.3m
Michael Nahl
Independent Chairman of the Board5.1yrsUS$210.00k0.051% $558.5k
David Rayburn
Independent Director5.3yrsUS$158.00k0.046% $500.0k
Michael Walter
Independent Director11yrsUS$160.00k0.081% $885.5k
Michael Christodolou
Independent Director21.1yrsUS$163.69k0.27% $2.9m
Robert Brunner
Independent Director6.7yrsUS$163.00k0.056% $615.6k
Consuelo Madere
Independent Director2yrsUS$155.00k0.017% $182.0k
Mary Lindsey
Independent Director1.2yrsUS$135.28k0.0086% $94.7k

5.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LNN's board of directors are considered experienced (5.2 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lindsay Corporation
  • Ticker: LNN
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.098b
  • Shares outstanding: 10.81m
  • Website: https://www.lindsay.com

Number of Employees


Location

  • Lindsay Corporation
  • 18135 Burke Street
  • Suite 100
  • Omaha
  • Nebraska
  • 68022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNNNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1988
LMFDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1988

Biography

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company operates through 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. It also offers repair and replacement parts for irrigation systems and controls; and M2M communication technology solutions, data acquisition and management systems, and custom electronic equipment under the Elecsys brand. The Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used to enhance highway safety at locations, such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards. It also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:38
End of Day Share Price2020/02/27 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.