Lindsay (LNN) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: 0.98%
• Average Volume (3M): 122.18K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.66
• Revenue Growth: 9.46%
• EPS Growth: 5.91%
• Country: US
• Employees: 1,280
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 10,862,203
• 10 Day Avg. Volume: 198,392
• 30 Day Avg. Volume: 122,178
• PEG Ratio: 1.46
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.48
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: $136.00
• Price Target Upside: -7.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $162.00 ▲(10.12%Upside)

Lindsay Corporation's overall stock score reflects its strong financial performance, supported by solid profitability and a low leverage position. The technical analysis reveals a positive trend, although with caution due to slightly overbought conditions. The earnings call provided a positive outlook, driven by international market growth, offsetting some domestic challenges. Valuation suggests the stock is fairly valued but not overly attractive. These factors combine to give Lindsay a solid stock score, with financial performance being the most significant contributor.

Positive Factors

Earnings Performance

Lindsay reported strong fiscal third-quarter results, with revenue of $170 million above consensus of $157 million.

Infrastructure Projects

A $20 million Road Zipper project expected to deliver in F2Q25 should see full year Street estimates increase.

International Expansion

International irrigation projects are seen as a significant opportunity for expansion.

Negative Factors

Agricultural Market Conditions

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

Domestic Market Weakness

Management does not expect meaningful improvement in the domestic irrigation business.

Tariff Challenges

Management discussed challenges related to tariffs impacting the company's operations.

Lindsay Business Overview & Revenue Model

Company Description

Lindsay Corporation (LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment. The company operates primarily in the agriculture and transportation sectors, providing innovative solutions designed to enhance resource efficiency and promote sustainable practices. Lindsay's core products include center pivot and lateral move irrigation systems, which help farmers optimize water usage and improve crop yields, as well as transportation safety products that enhance road safety and operational efficiency.

How the Company Makes Money

Lindsay Corporation generates revenue through the sale of its irrigation systems and infrastructure products. The company's irrigation segment, which is its largest revenue stream, sells equipment like center pivots and lateral move systems to agricultural producers around the world. These systems are essential for efficient water management in farming, which is increasingly important in regions facing water scarcity. Additionally, Lindsay earns revenue from its infrastructure division, which manufactures transportation safety products, such as crash cushions and road safety barriers, sold to governments and private entities involved in infrastructure development. The company also benefits from significant partnerships with distributors and dealers, which help expand its market reach and drive sales growth.

Lindsay Financial Statement Overview

Summary

Lindsay's financial performance is solid, with a strong balance sheet and cash flow growth. The income statement indicates efficient profitability, though revenue growth has been inconsistent. Overall, the company’s financial metrics suggest effective management and a stable financial foundation.

Income Statement

Lindsay's income statement shows a solid performance with a TTM Gross Profit Margin of 31.6% and a Net Profit Margin of 11.9%, indicating efficient cost management and profitability. The Revenue Growth Rate from the previous year to the latest TTM is 6.7%, reflecting steady growth. However, the company experienced a revenue decline in the past two annual periods, suggesting potential market challenges.

Balance Sheet

The balance sheet reveals a strong financial position with a Debt-to-Equity Ratio of 0.26, implying low leverage. Return on Equity (ROE) is robust at 14.9%, showcasing effective utilization of equity. Additionally, the Equity Ratio of 63.4% highlights a stable capital structure with a significant portion of assets funded by equity.

Cash Flow

Cash flow analysis shows a commendable Free Cash Flow Growth Rate of 32.4% in the TTM period, reflecting improved cash generation. The Operating Cash Flow to Net Income Ratio is 1.53, indicating strong cash flow relative to net income. However, fluctuating free cash flow in prior years suggests potential volatility in cash management.

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
EBITDA	110.02M	99.98M	120.06M	107.64M	74.31M	73.00M
Net Income	76.86M	66.26M	72.38M	65.47M	42.57M	38.63M
Balance Sheet
Total Assets	765.28M	760.23M	745.66M	710.65M	637.18M	570.53M
Cash, Cash Equivalents and Short-Term Investments	150.63M	190.88M	166.31M	116.51M	146.71M	140.91M
Total Debt	135.65M	134.39M	136.11M	135.37M	134.03M	141.74M
Total Liabilities	282.25M	279.34M	290.01M	317.30M	298.74M	272.01M
Stockholders Equity	483.03M	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: Positive
• Last Price: 147.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNN, the sentiment is Positive. The current price of 147.11 is above the 20-day moving average (MA) of 138.44, above the 50-day MA of 136.43, and above the 200-day MA of 128.67, indicating a bullish trend. The MACD of 2.41 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 73.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNN.

Lindsay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	77 Outperform	$7.88B	13.08	15.24%	1.67%	5.95%	-10.59%
LNN	76 Outperform	$1.60B	21.13	15.06%	0.98%	9.46%	5.91%
ALG	72 Outperform	$2.73B	23.49	11.48%	0.53%	-6.43%	-14.68%
DE	72 Outperform	$140.91B	25.17	24.07%	1.25%	-22.26%	-37.83%
CAT	70 Outperform	$187.39B	19.42	55.67%	1.42%	-5.58%	-7.37%
Sector *	65 Neutral	$10.69B	15.75	5.51%	1.90%	2.72%	-26.43%
AGCO	57 Neutral	$8.25B	46.40	-13.60%	1.05%	-23.02%	-152.78%

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.