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

Fundamentals

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


Market Performance


7 Day Return

1.6%

LNN

3.2%

US Machinery

1.3%

US Market


1 Year Return

-6.2%

LNN

1.6%

US Machinery

5.9%

US Market

Return vs Industry: LNN underperformed the US Machinery industry which returned 1.6% over the past year.

Return vs Market: LNN underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

LNNIndustryMarket
7 Day1.6%3.2%1.3%
30 Day-5.4%-3.8%-1.9%
90 Day4.2%-4.6%-1.8%
1 Year-4.9%-6.2%3.8%1.6%8.3%5.9%
3 Year19.7%14.7%45.8%36.4%45.6%36.2%
5 Year11.6%3.9%59.9%40.7%66.1%47.9%

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?

169.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LNN ($88.97) is trading above our estimate of fair value ($75.11)

Significantly Undervalued: 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 (169.7x) compared to the Machinery industry average (19.6x).

PE vs Market: LNN is poor value based on its PE Ratio (169.7x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 (3.5x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Lindsay forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

41.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNN's forecast earnings growth (41.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LNN's earnings (41.2% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: LNN's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LNN's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LNN's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Lindsay performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LNN's earnings have declined by -25.7% 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 (-73.9%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: LNN's Return on Equity (2.1%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: LNN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lindsay's financial position?


Financial Position Analysis

Short Term Liabilities: LNN's short term assets ($317.2M) exceeds its short term liabilities ($86.8M)

Long Term Liabilities: LNN's short term assets (317.2M) exceeds its long term liabilities (148.7M)


Debt to Equity History and Analysis

Debt Level: LNN's debt to equity ratio (42.9%) is considered high

Reducing Debt: Insufficient data to determine if LNN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LNN's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: LNN's interest payments on its debt are well covered by EBIT (3.7x 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 2.731950x debt).


Next Steps

Dividend

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

1.39%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LNN's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: LNN's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (236.6%), 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 (34.7% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Tim Hassinger (57yo)

2yrs

Tenure

US$6,344,923

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Management Age and Tenure

3.5yrs

Average Tenure

49yo

Average Age

Experienced Management: LNN's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LNN's board of directors are considered experienced (4.8 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

  • Mark Roth (44yo)

    VP of Corporate Development & Treasurer

    • Tenure: 12.6yrs
  • Lori Zarkowski (44yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 8.2yrs
  • Eric Arneson (45yo)

    Senior VP

    • Tenure: 11.5yrs
  • Brian Ketcham (58yo)

    Senior VP & CFO

    • Tenure: 3.5yrs
    • Compensation: US$909.44k
  • Tim Hassinger (57yo)

    President

    • Tenure: 2yrs
    • Compensation: US$6.34m
  • Randy Wood (47yo)

    President of Agricultural Irrigation Division

    • Tenure: 3.4yrs
    • Compensation: US$925.26k
  • Eric Talmadge (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.8yrs
  • J. Marion (51yo)

    President of Infrastructure Division

    • Tenure: 3.4yrs
    • Compensation: US$695.99k
  • Gregory Oswald (54yo)

    Senior Vice President of Global Operations

    • Tenure: 1.8yrs
  • Kelly Staup (47yo)

    Vice President of Human Resources

    • Tenure: 1.8yrs

Board Members

  • Michael Nahl (76yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$190.00k
  • David Rayburn (71yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$148.00k
  • Michael Walter (69yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: US$150.00k
  • Mike Christodolou (58yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$150.00k
  • Bob Brunner (61yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$153.00k
  • Tim Hassinger (57yo)

    President

    • Tenure: 2yrs
    • Compensation: US$6.34m
  • Consuelo Madere (58yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$112.16k
  • Mary Lindsey (64yo)

    Director

    • Tenure: 0.8yrs

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$959.661m
  • Shares outstanding: 10.79m
  • 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’s Irrigation segment manuf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:36
End of Day Share Price2019/10/14 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.