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. Both the health and profitability get an excellent rating, making LNN a very profitable company, without any liquidiy or solvency issues. 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.
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
With a decent Return On Assets value of 9.04%, LNN is doing good in 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.
Measured over the past 3 years, the Average Return On Invested Capital for LNN 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
Looking at the Profit Margin, with a value of 11.21%, LNN is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
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 64.84% of its industry peers.
In the last couple of years the Operating Margin of LNN has grown nicely.
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.
LNN has less shares outstanding than it did 1 year ago.
LNN has more shares outstanding than it did 5 years ago.
LNN has a better debt/assets ratio than last year.
2.2 Solvency
LNN has an Altman-Z score of 6.06. This indicates that LNN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.06, LNN belongs to the best of the industry, outperforming 82.81% 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's Debt to FCF ratio of 1.30 is amongst the best of 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 has a Debt to Equity ratio of 0.22. This is in the better half 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 | 6.06 |
ROIC/WACC1.05
WACC9.66%
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's Current ratio of 3.64 is amongst the best of the industry. LNN outperforms 84.38% of its industry peers.
A Quick Ratio of 2.64 indicates that LNN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.64, LNN belongs to the best of the industry, outperforming 86.72% of the companies in the same industry.
| 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.
The Revenue has grown by 9.47% in the past year. This is quite good.
The Revenue has been growing slightly by 6.45% on average over the past years.
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.
The Revenue is expected to grow by 5.44% on average over the next years.
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
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
Based on the Price/Earnings ratio of 21.31, the valuation of LNN can be described as rather expensive.
61.72% 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 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.31, LNN is valued on the expensive side.
LNN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LNN to the average of the S&P500 Index (21.90), we can say LNN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 22.31 |
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 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LNN may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)0.64
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.
Compared to an average industry Dividend Yield of 1.83, LNN has a dividend in line with its industry peers.
With a Dividend Yield of 1.00, LNN pays less dividend than the S&P500 average, which is at 2.38.
| 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 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 20.58% 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%
148.29
+1.18 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.97%
Inst Owner Change-50.34%
Ins Owners0.75%
Ins Owner Change2%
Market Cap1.61B
Analysts75
Price Target141.78 (-4.39%)
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 | 21.31 | ||
| Fwd PE | 22.31 | ||
| P/S | 2.38 | ||
| P/FCF | 18.26 | ||
| P/OCF | 13.21 | ||
| P/B | 3.05 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)6.96
EY4.69%
EPS(NY)6.65
Fwd EY4.48%
FCF(TTM)8.12
FCFY5.48%
OCF(TTM)11.22
OCFY7.57%
SpS62.36
BVpS48.65
TBVpS38.71
PEG (NY)1.9
PEG (5Y)0.64
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 | 6.06 |
F-Score5
WACC9.66%
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%