Lindsay Corp

LNN

Farm Machinery & Equipment

Mkt Cap

$1.238B

PE

17.88

Debt

$115.8M

Cash

$133.4M

EV

$1.221B

FCF

$93.63M

Market Cap

$1.238B

P/E Ratio

17.88

Debt

$115.8M

Cash

$133.4M

EV

$1.221B

FCF

$93.63M

Charts data: {"Earnings":[{"time":"2014-08-30","value":51512000},{"time":"2015-08-30","value":26309000},{"time":"2016-08-30","value":20267000},{"time":"2017-08-30","value":23179000},{"time":"2018-08-30","value":20277000},{"time":"2019-08-30","value":2172000},{"time":"2020-08-30","value":38629000},{"time":"2021-08-30","value":42572000},{"time":"2022-08-30","value":65469000},{"time":"2023-08-30","value":72379000}],"Sales":[{"time":"2014-08-30","value":617933000},{"time":"2015-08-30","value":560181000},{"time":"2016-08-30","value":516411000},{"time":"2017-08-30","value":517985000},{"time":"2018-08-30","value":547705000},{"time":"2019-08-30","value":444072000},{"time":"2020-08-30","value":474692000},{"time":"2021-08-30","value":567646000},{"time":"2022-08-30","value":770743000},{"time":"2023-08-30","value":674084000}],"Net Margins":[{"time":"2014-08-30","value":0.08336178841395427},{"time":"2015-08-30","value":0.04696517732661408},{"time":"2016-08-30","value":0.03924587198955871},{"time":"2017-08-30","value":0.0447484000501945},{"time":"2018-08-30","value":0.03702175441159018},{"time":"2019-08-30","value":0.004891098740744744},{"time":"2020-08-30","value":0.08137697707144843},{"time":"2021-08-30","value":0.07499744559109023},{"time":"2022-08-30","value":0.08494271112420093},{"time":"2023-08-30","value":0.10737385845087556}],"Assets":[{"time":"2014-08-30","value":526551000},{"time":"2015-08-30","value":536468000},{"time":"2016-08-30","value":499565000},{"time":"2017-08-30","value":506032000},{"time":"2018-08-30","value":500256000},{"time":"2019-08-30","value":500314000},{"time":"2020-08-30","value":570526000},{"time":"2021-08-30","value":637185000},{"time":"2022-08-30","value":710653000},{"time":"2023-08-30","value":745660000}],"Stockholders Equity":[{"time":"2014-08-30","value":382647000},{"time":"2015-08-30","value":288560000},{"time":"2016-08-30","value":251567000},{"time":"2017-08-30","value":270055000},{"time":"2018-08-30","value":276866000},{"time":"2019-08-30","value":268209000},{"time":"2020-08-30","value":298518000},{"time":"2021-08-30","value":338445000},{"time":"2022-08-30","value":393358000},{"time":"2023-08-30","value":455651000}],"ROE":[{"time":"2014-08-30","value":0.134620159049986},{"time":"2015-08-30","value":0.09117341280842806},{"time":"2016-08-30","value":0.08056303092217977},{"time":"2017-08-30","value":0.08583066412397475},{"time":"2018-08-30","value":0.07323759508209747},{"time":"2019-08-30","value":0.008098162254063063},{"time":"2020-08-30","value":0.12940258208885227},{"time":"2021-08-30","value":0.12578705550384847},{"time":"2022-08-30","value":0.1664361726468001},{"time":"2023-08-30","value":0.15884745122912053}],"ROA":[{"time":"2014-08-30","value":0.14973288437397328},{"time":"2015-08-30","value":0.0944977146819568},{"time":"2016-08-30","value":0.0688098645821865},{"time":"2017-08-30","value":0.07997913175451354},{"time":"2018-08-30","value":0.07708653169577176},{"time":"2019-08-30","value":0.01373937167458836},{"time":"2020-08-30","value":0.09500355812005062},{"time":"2021-08-30","value":0.0865321688363662},{"time":"2022-08-30","value":0.13317751420172713},{"time":"2023-08-30","value":0.13703832846069255}]}

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 brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; 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 redirective and non-redirective 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. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.

Sector

10-K
8/31/23
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5/31/23
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2/28/23
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11/30/22
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5/31/19
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2/28/19
10-Q
11/30/18
10-K
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Lindsay Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$93.63M	$105.9M	$118.8M	$132.3M	$146M	$159.9M	$173.7M	$187.1M	$199.8M	$211.6M	$222.1M	$2.221B
DCF		$92.09M	$89.86M	$86.97M	$83.5M	$79.51M	$75.09M	$70.32M	$65.31M	$60.14M	$54.91M	$549.1M
Value	$1.307B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 22%

Earnings Stability 41%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	4.7%	3.9%	4.5%	3.7%	0.49%	8.1%	7.5%	8.5%	11%	11%
ROA	9.4%	6.9%	8%	7.7%	1.4%	9.5%	8.7%	13%	14%	12%
ROE	9.1%	8.1%	8.6%	7.3%	0.81%	13%	13%	17%	16%	14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.51%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.67%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.04%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.86%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.03%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.57%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	3.52	5.43	3.83	5.11	-6.02	4.74	6.67	-9.26	1.15	1.24
Debt Equity	0.41	0.47	0.43	0.42	0.44	0.39	0.34	0.30	0.25	0.24
MIN
Graham Stability	-	-	71%	87%	10%	100%	100%	100%	100%	10%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.24.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.79.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.10.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	3.9%	4.2%	12%	-13%	2.6%
Net Income	20%	29%	23%	11%	36%
Stockholders Equity	8.9%	10%	15%	16%	4.5%
FCF	25%	35%	60%	-	2.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.24%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.63%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +28.98%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +35.85%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +10.48%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +4.49%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +34.56%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.12%.