Lindsay (LNN) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 1.2%
• Average Volume (3M): 92.31K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.54
• Revenue Growth: 0.46%
• EPS Growth: 12.22%
• Country: US
• Employees: 1,280
• Sector: Industrials
• Sector Strength: 64
• Industry: Agricultural - Machinery
• EPS (TTM): 7.03
• Shares Outstanding: 10,865,534
• 10 Day Avg. Volume: 121,470
• 30 Day Avg. Volume: 92,315
• PEG Ratio: 1.39
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.25
• Price to Cash Flow (P/CF): 16.00
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $134.00
• Price Target Upside: 15.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Lindsay Corporation has a strong overall financial performance and demonstrated substantial earnings growth, particularly in its infrastructure and international segments. However, the technical analysis suggests short-term caution, and valuation metrics indicate the stock is fairly priced. Challenges in the North American market and potential cost increases due to tariffs are key risks.

Positive Factors

Earnings

Lindsay reported solid fiscal second-quarter results, with revenue of $187 million above consensus of $177 million and adjusted EPS of $2.44 above consensus of $1.89.

International Growth

International irrigation sales increased 41%, driven primarily by continued deliveries associated with a large project in the MENA region.

Negative Factors

Domestic Irrigation Challenges

The company’s domestic irrigation business faced headwinds from lower sales volumes of irrigation equipment, lower average selling prices, and lower sales of replacement parts; domestic irrigation revenue declined 7% year-over-year in the quarter.

Market Conditions

Net farm income continues to be soft with low commodity prices and high input costs.

Lindsay Business Overview & Revenue Model

Company Description

Lindsay Corporation (LNN) is a global leader in the manufacturing and distribution of irrigation and infrastructure equipment. Headquartered in Omaha, Nebraska, the company operates primarily in two segments: Irrigation and Infrastructure. Lindsay's core products include center pivot and lateral move irrigation systems, designed to optimize water usage in agricultural applications, as well as a range of transportation safety equipment such as crash cushions and road marking products.

How the Company Makes Money

Lindsay Corporation generates revenue through the sale of its irrigation systems and infrastructure products. The Irrigation segment, which is the largest contributor to the company's revenue, focuses on selling advanced irrigation solutions that help farmers increase crop yield and water efficiency. This includes not only the hardware but also technology-driven services and solutions. The Infrastructure segment contributes to revenue by offering products aimed at enhancing road safety, such as moveable barriers and crash cushions. Additionally, Lindsay often engages in partnerships and collaborations with governments and private sectors worldwide, which helps in securing contracts and expanding its market reach. These partnerships are significant contributors to its earnings, especially in emerging markets where infrastructure development is a priority.

Lindsay Financial Statement Overview

Summary

Lindsay exhibits a balanced financial performance with strengths in operational efficiency and a solid capital structure. While the company maintains strong leverage and profitability ratios, the declining revenue trend remains a key challenge. Continued focus on enhancing revenue growth and improving cash flow conversion will be crucial for sustaining long-term success.

Income Statement

Lindsay's TTM (Trailing-Twelve-Months) results show a moderate performance with a gross profit margin of 31.2% and a net profit margin of 11.2%. The revenue growth rate is declining, with a recent drop compared to previous years. EBIT and EBITDA margins are steady at 12.5% and 16.1% respectively, indicating operational efficiency. However, the declining revenue trend poses a concern for future growth.

Balance Sheet

The balance sheet reflects strong financial stability with a debt-to-equity ratio of 0.27, indicating low leverage. Return on equity is at 14%, showing effective use of shareholders' funds. The equity ratio stands at 63.4%, highlighting a solid capital structure. Overall, the company maintains a strong financial position with manageable debt levels.

Cash Flow

Cash flow analysis shows a positive free cash flow growth, and an operating cash flow to net income ratio of 1.40, indicating effective cash generation from operations. However, the free cash flow to net income ratio of 0.94 suggests some room for improvement in cash generation relative to profits.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
647.54M	607.07M	674.08M	770.74M	567.65M	474.69M
	Gross Profit
204.65M	191.06M	213.01M	199.18M	150.21M	152.54M
	EBIT
86.44M	76.61M	102.18M	94.64M	54.11M	54.20M
	EBITDA
110.02M	103.48M	120.06M	107.64M	74.31M	73.00M
	Net Income Common Stockholders
76.85M	66.26M	72.38M	65.47M	42.57M	38.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.72M	190.88M	166.31M	116.51M	146.71M	140.91M
	Total Assets
814.18M	760.23M	745.66M	710.65M	637.18M	570.53M
	Total Debt
132.20M	134.39M	136.11M	135.37M	134.03M	141.74M
	Net Debt
-39.85M	-56.49M	-24.65M	30.32M	6.92M	20.34M
	Total Liabilities
297.77M	279.34M	290.01M	317.30M	298.74M	272.01M
	Stockholders Equity
516.42M	480.89M	455.65M	393.36M	338.44M	298.52M
Cash Flow		Free Cash Flow
88.38M	66.78M	100.93M	-12.55M	17.46M	24.59M
	Operating Cash Flow
117.50M	95.76M	119.71M	3.05M	43.97M	46.03M
	Investing Cash Flow
-34.34M	-25.94M	-47.42M	-8.95M	-27.62M	-38.51M
	Financing Cash Flow
-39.84M	-38.64M	-17.30M	-12.69M	-11.66M	-13.44M

Lindsay Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 116.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNN, the sentiment is Negative. The current price of 116.32 is below the 20-day moving average (MA) of 127.27, below the 50-day MA of 130.28, and below the 200-day MA of 124.02, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNN.

Lindsay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRI	77 Outperform	$4.30B	17.76	17.70%	―	12.29%	147.67%
LNN	74 Outperform	$1.30B	17.03	15.38%	1.20%	0.46%	12.22%
DE	74 Outperform	$114.90B	18.76	27.91%	1.46%	-20.93%	-34.33%
TTC	70 Outperform	$6.42B	16.39	26.98%	2.30%	4.02%	42.77%
VMI	68 Neutral	$5.30B	15.35	24.05%	0.94%	-2.38%	141.60%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
AGCO	52 Neutral	$5.84B	46.40	-10.11%	1.48%	-19.08%	-136.41%

Lindsay Corporate Events

Lindsay Board Changes and Annual Meeting Decisions

Ibrahim Gokcen has resigned from Lindsay Corporation’s Board of Directors due to a change in his primary employment, leading to a reduction in the board size to seven members. At the company’s annual meeting, significant decisions were made, including the election of three directors, approval of a long-term incentive plan, ratification of KPMG LLP as the independent auditor, and an advisory approval of executive compensation.