LINDSAY CORP (LNN) Stock Fundamental Analysis
NYSE:LNN - New York Stock Exchange, Inc. - US5355551061 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LNN. LNN was compared to 127 industry peers in the Machinery industry. LNN gets an excellent profitability rating and is at the same time showing great financial health properties. LNN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LNN had positive earnings in the past year.
LNN had a positive operating cash flow in the past year.
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 9.04% is fine compared to the rest of the industry. LNN outperforms 76.38% of its industry peers.
LNN has a better Return On Equity (14.37%) than 70.08% of its industry peers.
LNN has a Return On Invested Capital of 10.19%. This is in the better half of the industry: LNN outperforms 70.87% 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 10.78%.
| 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 77.95% of its industry peers.
LNN's Profit Margin has improved in the last couple of years.
LNN's Operating Margin of 13.32% is fine compared to the rest of the industry. LNN outperforms 64.57% of its industry peers.
In the last couple of years the Operating Margin of LNN has grown nicely.
The Gross Margin of LNN (31.24%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNN is 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.
Compared to 1 year ago, LNN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.85 indicates that LNN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.85, LNN belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
The Debt to FCF ratio of LNN is 1.30, which is an excellent value as it means it would take LNN, only 1.30 years of fcf income to pay off all of its debts.
LNN has a Debt to FCF ratio of 1.30. This is amongst the best in the industry. LNN outperforms 81.10% 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 69.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.05
WACC9.67%
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.
LNN has a better Current ratio (3.64) than 84.25% of its industry peers.
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 Quick ratio of 2.64. This is amongst the best in the industry. LNN outperforms 86.61% 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%.
Measured over the past years, LNN shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.12% on average per year.
Looking at the last year, LNN shows a quite strong growth in Revenue. The Revenue has grown by 9.47% 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)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
The Earnings Per Share is expected to grow by 7.20% on average over the next years.
LNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y15.85%
EPS Next 2Y3.82%
EPS Next 3Y5%
EPS Next 5Y7.2%
Revenue Next Year13.77%
Revenue Next 2Y6.1%
Revenue Next 3Y5.6%
Revenue Next 5Y5.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.71, LNN is valued on the expensive side.
LNN's Price/Earnings ratio is a bit cheaper when compared to the industry. LNN is cheaper than 65.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNN to the average of the S&P500 Index (27.50), we can say LNN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 21.14, LNN is valued on the expensive side.
LNN's Price/Forward Earnings ratio is in line with the industry average.
LNN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 21.14 |
4.2 Price Multiples
60.63% of the companies in the same industry are more expensive than LNN, based on the Enterprise Value to EBITDA ratio.
71.65% of the companies in the same industry are more expensive than LNN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
LNN's 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)1.24
PEG (5Y)0.6
EPS Next 2Y3.82%
EPS Next 3Y5%
5. Dividend
5.1 Amount
LNN has a Yearly Dividend Yield of 1.05%.
Compared to an average industry Dividend Yield of 1.83, LNN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.05, LNN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of LNN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.58%
EPS Next 2Y3.82%
EPS Next 3Y5%
137.18
-1.46 (-1.05%)
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 Change-0.19%
Market Cap1.49B
Analysts75
Price Target141.78 (3.35%)
Short Float %2.69%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-8.44%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)4.19%
EPS NY rev (3m)12.6%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 21.14 | ||
| P/S | 2.2 | ||
| P/FCF | 16.88 | ||
| P/OCF | 12.21 | ||
| P/B | 2.82 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)6.96
EY5.07%
EPS(NY)6.49
Fwd EY4.73%
FCF(TTM)8.13
FCFY5.93%
OCF(TTM)11.23
OCFY8.19%
SpS62.41
BVpS48.69
TBVpS38.74
PEG (NY)1.24
PEG (5Y)0.6
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 | 5.85 |
F-Score5
WACC9.67%
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 Y15.85%
EPS Next 2Y3.82%
EPS Next 3Y5%
EPS Next 5Y7.2%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y2.27%
Revenue growth 5Y6.45%
Sales Q2Q%21.74%
Revenue Next Year13.77%
Revenue Next 2Y6.1%
Revenue Next 3Y5.6%
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%