Lindsay (LNN) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: 1.01%
• Average Volume (3M): 80.59K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.63
• Revenue Growth: 0.46%
• EPS Growth: 12.22%
• Country: US
• Employees: 1,280
• Sector: Industrials
• Sector Strength: 91
• Industry: Agricultural - Machinery
• EPS (TTM): 2.44
• Shares Outstanding: 10,865,534
• 10 Day Avg. Volume: 72,847
• 30 Day Avg. Volume: 80,590
• 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: 0.92
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: $128.00
• Price Target Upside: -9.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Lindsay Corporation shows robust financial health and impressive earnings growth, especially in international markets. However, challenges in North America and potential cost increases from tariffs pose risks. The technical analysis suggests caution, while the valuation remains attractive. Overall, the company is well-positioned but must navigate market uncertainties effectively.

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 Expansion

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

Negative Factors

Domestic Market Challenges

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

Tariffs

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

Lindsay Business Overview & Revenue Model

Company Description

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand. It also offers repair and replacement parts for its irrigation systems and controls; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used to enhance highway safety at locations, such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards. It also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

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'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
	EBIT
86.44M	76.61M	102.18M	94.64M	54.11M	54.20M
	EBITDA
110.02M	99.98M	120.06M	107.64M	74.31M	73.00M
	Net Income Common Stockholders
76.86M	66.26M	72.38M	65.47M	42.57M	38.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
150.63M	190.88M	166.31M	116.51M	146.71M	140.91M
	Total Assets
765.28M	760.23M	745.66M	710.65M	637.18M	570.53M
	Total Debt
135.65M	134.39M	136.11M	135.37M	134.03M	141.74M
	Net Debt
2.24M	-56.49M	-24.65M	30.32M	6.92M	20.34M
	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: 141.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 141.84 is above the 20-day moving average (MA) of 132.96, above the 50-day MA of 129.20, and above the 200-day MA of 125.59, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 93.52 is Negative, 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	76 Outperform	$6.61B	10.91	15.24%	1.85%	5.95%	-10.59%
DE	75 Outperform	$144.25B	25.71	24.07%	1.16%	-22.25%	-37.83%
LNN	73 Outperform	$1.55B	20.19	15.38%	1.01%	0.46%	12.22%
CAT	73 Outperform	$166.29B	17.23	55.67%	1.59%	-5.58%	-7.37%
ALG	70 Neutral	$2.46B	21.17	11.48%	0.55%	-6.43%	-14.68%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
AGCO	55 Neutral	$8.09B	46.40	-13.60%	1.07%	-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.