LINDSAY CORP (LNN) Stock Fundamental Analysis
NYSE:LNN - New York Stock Exchange, Inc. - US5355551061 - Common Stock - Currency: USD
LNN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. LNN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LNN has a correct valuation and a medium growth rate. These ratings could make LNN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year LNN was profitable.
In the past year LNN had a positive cash flow from operations.
In the past 5 years LNN has always been profitable.
In the past 5 years LNN always reported a positive cash flow from operatings.
1.2 Ratios
LNN's Return On Assets of 9.44% is fine compared to the rest of the industry. LNN outperforms 75.78% of its industry peers.
LNN has a Return On Equity of 14.88%. This is in the better half of the industry: LNN outperforms 69.53% of its industry peers.
LNN has a better Return On Invested Capital (10.06%) than 67.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNN is in line with the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.44% | ||
| ROE | 14.88% | ||
| ROIC | 10.06% |
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
Looking at the Profit Margin, with a value of 11.87%, LNN belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
In the last couple of years the Profit Margin of LNN has grown nicely.
LNN has a better Operating Margin (13.35%) than 64.84% of its industry peers.
LNN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.60%, LNN perfoms like the industry average, outperforming 53.13% 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 | 13.35% | ||
| PM (TTM) | 11.87% | ||
| GM | 31.6% |
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.
Compared to 1 year ago, LNN has less shares outstanding
LNN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LNN has an improved debt to assets ratio.
2.2 Solvency
LNN has an Altman-Z score of 5.77. This indicates that LNN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.77, LNN belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
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.
The Debt to FCF ratio of LNN (1.30) is better than 82.03% 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 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 5.77 |
ROIC/WACC1.03
WACC9.74%
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 83.59% of the companies in the same industry.
LNN has a Quick Ratio of 2.57. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
LNN's Quick ratio of 2.57 is amongst the best of the industry. LNN outperforms 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
LNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.12%, which is quite good.
LNN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.12% yearly.
Looking at the last year, LNN shows a small growth in Revenue. The Revenue has grown by 0.46% in the last year.
Measured over the past years, LNN shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
EPS 1Y (TTM)12.12%
EPS 3Y15.87%
EPS 5Y33.12%
EPS Q2Q%48.78%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.27%
Revenue growth 5Y6.45%
Sales Q2Q%23.46%
3.2 Future
LNN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
Based on estimates for the next years, LNN will show a small growth in Revenue. The Revenue will grow by 5.79% on average per year.
EPS Next Y11.19%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
EPS Next 5Y8.66%
Revenue Next Year11.95%
Revenue Next 2Y7.58%
Revenue Next 3Y5.74%
Revenue Next 5Y5.79%
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
The Price/Earnings ratio is 18.30, which indicates a rather expensive current valuation of LNN.
LNN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, LNN is valued a bit cheaper.
LNN is valuated rather expensively with a Price/Forward Earnings ratio of 19.36.
LNN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, LNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
LNN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LNN is valued a bit cheaper than the industry average as 75.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LNN may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)0.55
EPS Next 2Y5.07%
EPS Next 3Y3.74%
5. Dividend
5.1 Amount
LNN has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.04, LNN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, LNN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of LNN has a limited annual growth rate of 2.67%.
LNN has been paying a dividend for at least 10 years, so it has 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 20.25% 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.
DP20.25%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
128.67
-0.97 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.77%
Inst Owner Change-46.53%
Ins Owners0.76%
Ins Owner Change4.49%
Market Cap1.40B
Analysts75
Price Target141.78 (10.19%)
Short Float %3.84%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.42
Dividend Growth(5Y)2.67%
DP20.25%
Div Incr Years22
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.54%
Min EPS beat(2)11.43%
Max EPS beat(2)27.65%
EPS beat(4)4
Avg EPS beat(4)27.43%
Min EPS beat(4)11.43%
Max EPS beat(4)56.22%
EPS beat(8)7
Avg EPS beat(8)18.15%
EPS beat(12)11
Avg EPS beat(12)20.22%
EPS beat(16)13
Avg EPS beat(16)13.86%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-3.03%
Max Revenue beat(2)4.46%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)5.5%
Revenue beat(8)3
Avg Revenue beat(8)-3.7%
Revenue beat(12)5
Avg Revenue beat(12)-2.24%
Revenue beat(16)9
Avg Revenue beat(16)0.8%
PT rev (1m)0.72%
PT rev (3m)5.3%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-6.18%
EPS NY rev (1m)8.07%
EPS NY rev (3m)15.87%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 19.36 | ||
| P/S | 2.16 | ||
| P/FCF | 15.83 | ||
| P/OCF | 11.9 | ||
| P/B | 2.71 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 12.19 |
EPS(TTM)7.03
EY5.46%
EPS(NY)6.65
Fwd EY5.16%
FCF(TTM)8.13
FCFY6.32%
OCF(TTM)10.81
OCFY8.4%
SpS59.57
BVpS47.51
TBVpS37.58
PEG (NY)1.64
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.44% | ||
| ROE | 14.88% | ||
| ROCE | 12.92% | ||
| ROIC | 10.06% | ||
| ROICexc | 13.96% | ||
| ROICexgc | 17.98% | ||
| OM | 13.35% | ||
| PM (TTM) | 11.87% | ||
| GM | 31.6% | ||
| FCFM | 13.65% |
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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 137.16% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.13% | ||
| Profit Quality | 115% | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z | 5.77 |
F-Score6
WACC9.74%
ROIC/WACC1.03
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)12.12%
EPS 3Y15.87%
EPS 5Y33.12%
EPS Q2Q%48.78%
EPS Next Y11.19%
EPS Next 2Y5.07%
EPS Next 3Y3.74%
EPS Next 5Y8.66%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y2.27%
Revenue growth 5Y6.45%
Sales Q2Q%23.46%
Revenue Next Year11.95%
Revenue Next 2Y7.58%
Revenue Next 3Y5.74%
Revenue Next 5Y5.79%
EBIT growth 1Y-7.62%
EBIT growth 3Y12.29%
EBIT growth 5Y65.88%
EBIT Next Year38.23%
EBIT Next 3Y17.84%
EBIT Next 5Y15.78%
FCF growth 1Y186.02%
FCF growth 3Y56.27%
FCF growth 5YN/A
OCF growth 1Y151.08%
OCF growth 3Y29.59%
OCF growth 5Y90.67%