Lindsay Corp (LNN) stock analysis

P/E above its 5-year median

Lindsay's P/E of 20.4 is above its own 5-year median of 20.1.

P/E below the industry

Lindsay's P/E of 20.4 is below the Industrial and Commercial Machinery and Computer Equipment median of 27.5.

EV/EBITDA below its 5-year median

Lindsay's EV/EBITDA of 11.5 is below its 5-year median of 12.8.

P/B below the industry

Lindsay's price-to-book of 2.19 is below the Industrial and Commercial Machinery and Computer Equipment median of 2.71.

Trading below fair value

The share price of $108.96 is below our fair value estimate of $126.30.

Margin of safety under 20%

The price is 13.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -6.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -24.8% over the last twelve months, against a 5-year average of 5.5% a year.

Growing slower than the industry

Revenue grew -6.0% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.

Guidance unchanged

The latest outlook (current fiscal year revenue for the project, Jul 2, 2026) was maintained, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 28.9% over the last twelve months, against 31.2% a year earlier.

Return on equity under 15%

Return on equity was 10.7% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Lindsay's return on equity of 10.7% is above the Industrial and Commercial Machinery and Computer Equipment median of 7.0%.

Earnings grew over 5 years

Net income grew 5.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 8.8% over the last twelve months, against a 5-year average of 10.0%.

Net margin above the industry

Lindsay's net margin of 8.8% is above the Industrial and Commercial Machinery and Computer Equipment median of 4.8%.

Low debt

Debt is 22.7% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 34.2% five years ago to 22.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 65.2% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 3.15 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.02; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lindsay paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lindsay yields 1.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 27.7% of net income.

Covered by free cash flow

Dividends take 44.3% of free cash flow.