LINDSAY CORP (LNN) Stock Fundamental Analysis
NYSE:LNN - New York Stock Exchange, Inc. - US5355551061 - Common Stock - Currency: USD
Overall LNN gets a fundamental rating of 6 out of 10. We evaluated LNN against 128 industry peers in the Machinery industry. LNN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LNN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years LNN has always been profitable.
Each year in the past 5 years LNN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.04%, LNN is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.37%, LNN is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
LNN has a Return On Invested Capital of 10.19%. This is in the better half of the industry: LNN outperforms 71.09% of its industry peers.
LNN had an Average Return On Invested Capital over the past 3 years of 11.96%. This is in line with the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 14.37% | ||
| ROIC | 10.19% |
ROA(3y)9.21%
ROA(5y)8.22%
ROE(3y)15.44%
ROE(5y)14.37%
ROIC(3y)11.96%
ROIC(5y)10.63%
1.3 Margins
The Profit Margin of LNN (11.21%) is better than 78.13% of its industry peers.
In the last couple of years the Profit Margin of LNN has grown nicely.
Looking at the Operating Margin, with a value of 13.32%, LNN is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
LNN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.24%, LNN is in line with its industry, outperforming 51.56% of the companies in the same industry.
In the last couple of years the Gross Margin of LNN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.32% | ||
| PM (TTM) | 11.21% | ||
| GM | 31.24% |
OM growth 3Y9.81%
OM growth 5Y55.82%
PM growth 3Y13.29%
PM growth 5Y85.61%
GM growth 3Y5.95%
GM growth 5Y4.05%
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.
The number of shares outstanding for LNN has been reduced compared to 1 year ago.
The number of shares outstanding for LNN has been increased compared to 5 years ago.
LNN has a better debt/assets ratio than last year.
2.2 Solvency
LNN has an Altman-Z score of 6.01. This indicates that LNN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LNN (6.01) is better than 82.81% of its industry peers.
LNN has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
LNN has a Debt to FCF ratio of 1.30. This is amongst the best in the industry. LNN outperforms 81.25% of its industry peers.
LNN has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
LNN's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. LNN outperforms 69.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.05
WACC9.68%
2.3 Liquidity
LNN has a Current Ratio of 3.64. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.64, LNN belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
LNN has a Quick Ratio of 2.64. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
LNN has a better Quick ratio (2.64) than 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
LNN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.61%.
The Earnings Per Share has been growing by 33.12% on average over the past years. This is a very strong growth
LNN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.47%.
LNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)5.61%
EPS 3Y15.87%
EPS 5Y33.12%
EPS Q2Q%-3.78%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y2.27%
Revenue growth 5Y6.45%
Sales Q2Q%21.74%
3.2 Future
LNN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.20% yearly.
LNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y11.19%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
EPS Next 5Y7.2%
Revenue Next Year12.64%
Revenue Next 2Y6.96%
Revenue Next 3Y5.19%
Revenue Next 5Y5.44%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.97 indicates a rather expensive valuation of LNN.
Based on the Price/Earnings ratio, LNN is valued a bit cheaper than the industry average as 63.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LNN to the average of the S&P500 Index (27.29), we can say LNN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 21.96, LNN is valued on the expensive side.
LNN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.74. LNN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
LNN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNN indicates a somewhat cheap valuation: LNN is cheaper than 69.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.97 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LNN may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)0.63
EPS Next 2Y5.07%
EPS Next 3Y3.74%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, LNN is not a good candidate for dividend investing.
LNN's Dividend Yield is comparable with the industry average which is at 1.81.
With a Dividend Yield of 1.00, LNN pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of LNN has a limited annual growth rate of 2.67%.
LNN has paid a dividend for at least 10 years, which is a reliable track record.
LNN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.67%
Div Incr Years22
Div Non Decr Years28
5.3 Sustainability
LNN pays out 20.58% 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.
DP20.58%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
145.96
-2.33 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.97%
Inst Owner Change0%
Ins Owners0.75%
Ins Owner Change2%
Market Cap1.59B
Analysts75
Price Target141.78 (-2.86%)
Short Float %2.92%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.42
Dividend Growth(5Y)2.67%
DP20.58%
Div Incr Years22
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.54%
Min EPS beat(2)25.44%
Max EPS beat(2)27.65%
EPS beat(4)4
Avg EPS beat(4)19.73%
Min EPS beat(4)11.43%
Max EPS beat(4)27.65%
EPS beat(8)8
Avg EPS beat(8)25.01%
EPS beat(12)11
Avg EPS beat(12)18.92%
EPS beat(16)13
Avg EPS beat(16)14.02%
Revenue beat(2)2
Avg Revenue beat(2)5.37%
Min Revenue beat(2)4.46%
Max Revenue beat(2)6.28%
Revenue beat(4)3
Avg Revenue beat(4)3.3%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)6.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)-2.74%
Revenue beat(16)9
Avg Revenue beat(16)0.6%
PT rev (1m)0%
PT rev (3m)0.72%
EPS NQ rev (1m)-9.37%
EPS NQ rev (3m)-10.64%
EPS NY rev (1m)0%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 21.96 | ||
| P/S | 2.34 | ||
| P/FCF | 17.97 | ||
| P/OCF | 13.01 | ||
| P/B | 3 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)6.96
EY4.77%
EPS(NY)6.65
Fwd EY4.55%
FCF(TTM)8.12
FCFY5.56%
OCF(TTM)11.22
OCFY7.69%
SpS62.36
BVpS48.65
TBVpS38.71
PEG (NY)1.87
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 14.37% | ||
| ROCE | 13.08% | ||
| ROIC | 10.19% | ||
| ROICexc | 14.66% | ||
| ROICexgc | 18.92% | ||
| OM | 13.32% | ||
| PM (TTM) | 11.21% | ||
| GM | 31.24% | ||
| FCFM | 13.02% |
ROA(3y)9.21%
ROA(5y)8.22%
ROE(3y)15.44%
ROE(5y)14.37%
ROIC(3y)11.96%
ROIC(5y)10.63%
ROICexc(3y)16.14%
ROICexc(5y)14.6%
ROICexgc(3y)21%
ROICexgc(5y)19.3%
ROCE(3y)15.35%
ROCE(5y)13.64%
ROICexcg growth 3Y3.82%
ROICexcg growth 5Y50.04%
ROICexc growth 3Y4%
ROICexc growth 5Y52.47%
OM growth 3Y9.81%
OM growth 5Y55.82%
PM growth 3Y13.29%
PM growth 5Y85.61%
GM growth 3Y5.95%
GM growth 5Y4.05%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 160.03% | ||
| Cap/Sales | 4.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.54% | ||
| Profit Quality | 116.2% | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 6.01 |
F-Score5
WACC9.68%
ROIC/WACC1.05
Cap/Depr(3y)103.78%
Cap/Depr(5y)111.93%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.61%
EPS 3Y15.87%
EPS 5Y33.12%
EPS Q2Q%-3.78%
EPS Next Y11.19%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
EPS Next 5Y7.2%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y2.27%
Revenue growth 5Y6.45%
Sales Q2Q%21.74%
Revenue Next Year12.64%
Revenue Next 2Y6.96%
Revenue Next 3Y5.19%
Revenue Next 5Y5.44%
EBIT growth 1Y4.38%
EBIT growth 3Y12.29%
EBIT growth 5Y65.88%
EBIT Next Year40.79%
EBIT Next 3Y14.69%
EBIT Next 5Y14.37%
FCF growth 1Y25.4%
FCF growth 3Y56.27%
FCF growth 5YN/A
OCF growth 1Y40.05%
OCF growth 3Y29.59%
OCF growth 5Y90.67%