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Lindsay Corp. (LNN)
:LNN
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Lindsay
(NYSE:LNN)70Outperform
Positive Factors
Earnings
Lindsay reported EPS of $1.57, beating both Stifel and Street estimates.
International Revenue
International irrigation revenue increased 41% organically year over year.
Negative Factors
Domestic Revenue
Domestic irrigation revenue decreased 13% year over year.
Lindsay (LNN) vs. S&P 500 (SPY)
Market Cap
$1.38B
Dividend Yield1.13%
Average Volume (3M)72.76K
Price to Earnings (P/E)20.3
Beta (1Y)0.68
Revenue Growth-7.17%
EPS Growth-0.53%
CountryUS
Employees1,280
SectorIndustrials
Sector Strength66
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)6.23
Shares Outstanding10,867,314
10 Day Avg. Volume72,245
30 Day Avg. Volume72,759
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.25
Price to Cash Flow (P/CF)15.90
P/FCF Ratio15.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$130.00Price Target Upside0.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
Lindsay Business Overview & Revenue Model
Company DescriptionLindsay 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 MoneyLindsay 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 shows a balanced financial performance with strengths in operational efficiency and a strong capital structure. The company maintains low leverage and good profitability ratios, but declining revenue growth remains a concern. Improvement in cash flow conversion is also needed.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.70
Positive
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.80
Positive
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.65
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 612.00M | 607.07M | 674.08M | 770.74M | 567.65M | 474.69M | Gross Profit |
| 191.12M | 191.06M | 213.01M | 199.18M | 150.21M | 152.54M | EBIT |
| 76.42M | 76.61M | 102.18M | 94.64M | 54.11M | 54.20M | EBITDA |
| 98.57M | 103.48M | 120.06M | 107.64M | 74.31M | 73.00M | Net Income Common Stockholders |
| 68.40M | 66.26M | 72.38M | 65.47M | 42.57M | 38.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 194.07M | 190.88M | 166.31M | 116.51M | 146.71M | 140.91M | Total Assets |
| 771.00M | 760.23M | 745.66M | 710.65M | 637.18M | 570.53M | Total Debt |
| 130.00M | 134.39M | 136.11M | 135.37M | 134.03M | 141.74M | Net Debt |
| -64.06M | -56.49M | -24.65M | 30.32M | 6.92M | 20.34M | Total Liabilities |
| 282.54M | 279.34M | 290.01M | 317.30M | 298.74M | 272.01M | Stockholders Equity |
| 488.46M | 480.89M | 455.65M | 393.36M | 338.44M | 298.52M |
| Cash Flow | Free Cash Flow | ||||
| 64.31M | 66.78M | 100.93M | -12.55M | 17.46M | 24.59M | Operating Cash Flow |
| 95.49M | 95.76M | 119.71M | 3.05M | 43.97M | 46.03M | Investing Cash Flow |
| -16.55M | -25.94M | -47.42M | -8.95M | -27.62M | -38.51M | Financing Cash Flow |
| -38.57M | -38.64M | -17.30M | -12.69M | -11.66M | -13.44M |
Lindsay Technical Analysis
Negative
129.85
Price Trends
129.07
Negative
126.71
Negative
122.31
Positive
Market Momentum
-0.13
Positive
39.46
Neutral
14.12
Positive
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 129.85 is below the 20-day moving average (MA) of 132.19, above the 50-day MA of 129.07, and above the 200-day MA of 122.31, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNN.
Lindsay Risk Analysis
Lindsay disclosed 14 risk factors in its most recent earnings report. Lindsay reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lindsay Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.68B | 19.38 | 24.05% | 0.72% | -2.38% | 141.60% | |
77 Outperform | $4.78B | 20.41 | 17.70% | ― | 12.29% | 147.67% | |
74 Outperform | $124.41B | 20.32 | 27.91% | 1.29% | -20.93% | -34.33% | |
70 Outperform | $1.38B | 20.35 | 14.32% | 1.13% | -7.17% | -0.53% | |
69 Neutral | $7.59B | 18.79 | 27.35% | 1.94% | 0.86% | 27.81% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
46 Neutral | $6.62B | 46.40 | -11.35% | 1.31% | -19.08% | -136.41% |
* Industrials Sector Average
Performance Comparison
LNN
Lindsay
129.85
11.31
9.54%
AGCO
Agco
91.58
-15.57
-14.53%
DE
Deere
467.50
106.31
29.43%
ITRI
Itron
106.98
11.68
12.26%
TTC
The Toro Company
78.01
-14.18
-15.38%
VMI
Valmont
338.99
132.62
64.26%
Lindsay Earnings Call Summary
Earnings Call Date: Jan 7, 2025 | % Change Since: 10.68% | Next Earnings Date: Apr 8, 2025
Earnings Call Sentiment Positive
The call highlighted strong international irrigation growth and infrastructure margin expansion despite challenges in North American irrigation and Brazil's market. Positive developments in technology and large project acquisitions bolster optimism.Highlights
International Irrigation Revenue Growth
The international irrigation business delivered a 37% year-over-year revenue growth, driven by sales in the MENA region, with positive trends in Western Europe and Latin America.
Infrastructure Segment Margin Expansion
The Infrastructure segment saw an increase in operating margin to 21.5% from 17.1% in the prior year, driven by improved manufacturing efficiency and lower operating expenses.
Positive Financial Performance
Consolidated revenues increased by 3% to $166.3 million, and net earnings rose by 14% to $17.2 million. Earnings per share increased to $1.57 from $1.36 in the prior year.
Acquisition in Innovation and Technology
Closed a deal to acquire a minority interest in Austria-based peso instruments, adding capabilities to Field net and Field-wide platforms, with access to over 240,000 connected devices.
Large Road Zipper System Project
Finalized a $20+ million contract for a Road Zipper system project in the Northeast, expected to be delivered in Q2, supporting growth in the Infrastructure segment.
Lowlights
Decline in North America Irrigation Revenue
North America irrigation revenues decreased by 13% compared to the prior year, primarily due to lower unit sales volume and less favorable product mix.
Challenges in Brazil Irrigation Market
Lower revenue in Brazil due to decreased market activity caused by lower commodity prices, affecting grower profitability and liquidity.
Infrastructure Revenue Decline
Infrastructure segment revenues for the quarter decreased by 9% compared to the prior year, primarily due to the timing of Road Zipper System lease revenue and lower road safety product sales.
Company Guidance
During the Lindsay Corporation's fiscal Q1 2025 earnings call, guidance highlighted several key metrics and strategic insights. The company reported a 3% increase in consolidated revenues, reaching $166.3 million, compared to $161.4 million in the same quarter of the previous year. This growth was primarily driven by a 37% year-over-year increase in international irrigation revenues, notably from a major project in the MENA region. In contrast, North American irrigation revenues saw a 13% decline. The Infrastructure segment experienced a 9% decrease in revenues due to timing differences in Road Zipper System lease revenue, though operating income in this segment rose by 14%, with an operating margin of 21.5%. The call also emphasized future growth prospects, including a $20+ million Road Zipper project expected to be delivered in Q2 and the strategic acquisition of a minority interest in Austria-based peso instruments, which is aimed at enhancing annual recurring revenue through expanded connected device capabilities.Lindsay Corporate Events
Executive/Board ChangesShareholder Meetings
Lindsay Board Changes and Annual Meeting Decisions
Neutral
Jan 13, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.