LINDSAY CORP (LNN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNN - US5355551061 - Common Stock
124.82 USD
-1.52 (-1.2%)
124.82 USD
0 (0%)
Overall LNN gets a fundamental rating of 6 out of 10. We evaluated LNN against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year LNN was profitable.
- LNN had a positive operating cash flow in the past year.
- Each year in the past 5 years LNN has been profitable.
- LNN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LNN has a Return On Assets of 8.86%. This is in the better half of the industry: LNN outperforms 76.52% of its industry peers.
- The Return On Equity of LNN (14.17%) is better than 71.97% of its industry peers.
- LNN's Return On Invested Capital of 10.35% is fine compared to the rest of the industry. LNN outperforms 75.00% 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 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 14.17% | ||
| ROIC | 10.35% |
ROA(3y)9.08%
ROA(5y)8.63%
ROE(3y)14.52%
ROE(5y)14.56%
ROIC(3y)11.21%
ROIC(5y)11.27%
1.3 Margins
- LNN has a better Profit Margin (11.02%) than 78.03% 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 13.04%, LNN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- LNN's Operating Margin has improved in the last couple of years.
- LNN's Gross Margin of 31.67% is in line compared to the rest of the industry. LNN outperforms 53.03% of its industry peers.
- LNN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 11.02% | ||
| GM | 31.67% |
OM growth 3Y2.01%
OM growth 5Y3.14%
PM growth 3Y8.81%
PM growth 5Y6.13%
GM growth 3Y6.43%
GM growth 5Y-0.45%
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.
- LNN has about the same amout of shares outstanding than it did 5 years ago.
- LNN has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.54 indicates that LNN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.54, LNN is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- The Debt to FCF ratio of LNN is 1.83, which is an excellent value as it means it would take LNN, only 1.83 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.83, LNN is doing good in the industry, outperforming 79.55% of the companies in the same industry.
- LNN has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.22, LNN is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 5.54 |
ROIC/WACC1.1
WACC9.45%
2.3 Liquidity
- A Current Ratio of 3.42 indicates that LNN has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.42, LNN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- LNN has a Quick Ratio of 2.43. This indicates that LNN is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.43, LNN belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
- LNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.35%, which is quite good.
- LNN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.75% yearly.
- Looking at the last year, LNN shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
- The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)8.35%
EPS 3Y4.51%
EPS 5Y13.75%
EPS Q2Q%-1.91%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y-4.26%
Revenue growth 5Y7.34%
Sales Q2Q%-6.29%
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 8.46% yearly.
- Based on estimates for the next years, LNN will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y-7.19%
EPS Next 2Y2.55%
EPS Next 3Y6.94%
EPS Next 5Y8.46%
Revenue Next Year-2.33%
Revenue Next 2Y1.71%
Revenue Next 3Y1.28%
Revenue Next 5Y4.87%
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 18.49.
- Based on the Price/Earnings ratio, LNN is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. LNN is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.50, LNN is valued on the expensive side.
- 75.76% of the companies in the same industry are more expensive than LNN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LNN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
- LNN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNN is cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LNN is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
- The decent profitability rating of LNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y2.55%
EPS Next 3Y6.94%
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 0.98, LNN pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, LNN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
- The dividend of LNN has a limited annual growth rate of 2.93%.
- LNN has paid a dividend for at least 10 years, which is a reliable track record.
- LNN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.93%
Div Incr Years22
Div Non Decr Years28
5.3 Sustainability
- LNN pays out 21.46% 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.
DP21.46%
EPS Next 2Y2.55%
EPS Next 3Y6.94%
LINDSAY CORP / LNN FAQ
What is the fundamental rating for LNN stock?
ChartMill assigns a fundamental rating of 6 / 10 to LNN.
What is the valuation status of LINDSAY CORP (LNN) stock?
ChartMill assigns a valuation rating of 4 / 10 to LINDSAY CORP (LNN). This can be considered as Fairly Valued.
How profitable is LINDSAY CORP (LNN) stock?
LINDSAY CORP (LNN) has a profitability rating of 7 / 10.
What is the financial health of LINDSAY CORP (LNN) stock?
The financial health rating of LINDSAY CORP (LNN) is 8 / 10.
How sustainable is the dividend of LINDSAY CORP (LNN) stock?
The dividend rating of LINDSAY CORP (LNN) is 6 / 10 and the dividend payout ratio is 21.46%.