LINDSAY CORP (LNN)
US5355551061 - Common Stock
We assign a fundamental rating of 6 out of 10 to LNN. LNN was compared to 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making LNN a very profitable company, without any liquidiy or solvency issues. LNN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LNN had positive earnings in the past year.
In the past year LNN had a positive cash flow from operations.
LNN had positive earnings in each of the past 5 years.
In the past 5 years LNN always reported a positive cash flow from operatings.
1.2 Ratios
LNN's Return On Assets of 9.05% is fine compared to the rest of the industry. LNN outperforms 73.08% of its industry peers.
LNN has a Return On Equity of 14.33%. This is in the better half of the industry: LNN outperforms 67.69% of its industry peers.
LNN has a Return On Invested Capital of 10.80%. This is in the better half of the industry: LNN outperforms 73.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNN is in line with the industry average of 10.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 14.33% | ||
| ROIC | 10.8% |
ROA(3y)8.54%
ROA(5y)6.56%
ROE(3y)15.04%
ROE(5y)11.78%
ROIC(3y)10.97%
ROIC(5y)8.46%
1.3 Margins
LNN has a Profit Margin of 10.74%. This is in the better half of the industry: LNN outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of LNN has grown nicely.
The Operating Margin of LNN (14.52%) is better than 76.15% of its industry peers.
LNN's Operating Margin has improved in the last couple of years.
LNN's Gross Margin of 31.74% is fine compared to the rest of the industry. LNN outperforms 61.54% of its industry peers.
LNN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.52% | ||
| PM (TTM) | 10.74% | ||
| GM | 31.74% |
OM growth 3Y10.74%
OM growth 5Y16.32%
PM growth 3Y9.72%
PM growth 5Y23.71%
GM growth 3Y-0.29%
GM growth 5Y2.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNN is still creating some value.
LNN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LNN has been increased compared to 5 years ago.
The debt/assets ratio for LNN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.81 indicates that LNN is not in any danger for bankruptcy at the moment.
LNN's Altman-Z score of 5.81 is fine compared to the rest of the industry. LNN outperforms 80.00% of its industry peers.
The Debt to FCF ratio of LNN is 1.23, which is an excellent value as it means it would take LNN, only 1.23 years of fcf income to pay off all of its debts.
LNN has a Debt to FCF ratio of 1.23. This is amongst the best in the industry. LNN outperforms 86.92% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that LNN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, LNN is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.22
WACC8.87%
2.3 Liquidity
LNN has a Current Ratio of 3.87. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LNN (3.87) is better than 84.62% of its industry peers.
LNN has a Quick Ratio of 2.58. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
LNN's Quick ratio of 2.58 is amongst the best of the industry. LNN outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
LNN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.67%.
LNN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.38% yearly.
Looking at the last year, LNN shows a very negative growth in Revenue. The Revenue has decreased by -13.70% in the last year.
LNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)-12.67%
EPS 3Y22.54%
EPS 5Y17.38%
EPS growth Q2Q0.61%
Revenue 1Y (TTM)-13.7%
Revenue growth 3Y12.4%
Revenue growth 5Y4.24%
Revenue growth Q2Q-8.83%
3.2 Future
LNN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.35% yearly.
Based on estimates for the next years, LNN will show a small growth in Revenue. The Revenue will grow by 1.95% on average per year.
EPS Next Y-19.62%
EPS Next 2Y-7.21%
EPS Next 3Y1.49%
EPS Next 5Y4.35%
Revenue Next Year-5.24%
Revenue Next 2Y0.28%
Revenue Next 3Y0.58%
Revenue Next 5Y1.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LNN is valuated rather expensively with a Price/Earnings ratio of 18.81.
67.69% of the companies in the same industry are more expensive than LNN, based on the Price/Earnings ratio.
LNN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.92, the valuation of LNN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LNN.
LNN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNN is valued a bit cheaper than 68.46% of the companies in the same industry.
LNN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNN is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 10.99 |
4.3 Compensation for Growth
The decent profitability rating of LNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-7.21%
EPS Next 3Y1.49%
5. Dividend
5.1 Amount
LNN has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.66, LNN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, LNN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of LNN has a limited annual growth rate of 2.57%.
LNN has been paying a dividend for at least 10 years, so it has a reliable track record.
LNN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.57%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
LNN pays out 22.13% of its income as dividend. This is a sustainable payout ratio.
LNN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.13%
EPS Next 2Y-7.21%
EPS Next 3Y1.49%
LINDSAY CORP
NYSE:LNN (5/16/2024, 5:30:00 PM)
After market: 117.97 0 (0%)117.97
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 20.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 14.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.52% | ||
| PM (TTM) | 10.74% | ||
| GM | 31.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.67%
EPS 3Y22.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.7%
Revenue growth 3Y12.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y