Lindsay Corp (NYSE: LNN)

Sector: Industrials Industry: Farm & Heavy Construction Machinery CIK: 0000836157
Market Cap 1.43 Bn
P/B 5.25
P/E 64.57
P/S 2.66
ROIC (Qtr) 9.97
Div Yield % 1.16
Rev 1y % (Qtr) -6.29
Total Debt (Qtr) 131.70 Mn
Debt/Equity (Qtr) 0.25
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About

Lindsay Corporation, a Delaware-based company, is a global leader in the provision of proprietary water management and road infrastructure products and services. The company operates in two major segments: Irrigation and Infrastructure. The Irrigation segment focuses on the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, which are primarily used in the agricultural industry to increase crop production while conserving water, energy, and labor. The Irrigation segment's primary products include Zimmatic,...

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Investment thesis

Bull case

  • Strong operating cash flow of 110.71M provides robust 0.84x coverage of total debt 131.70M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 199.62M provide 1073.24x coverage of short-term debt 186000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 720.63M provides 5.47x coverage of total debt 131.70M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 110.71M provides exceptional 102.32x coverage of interest expenses 1.08M, showing strong debt service capability.
  • Operating cash flow of 110.71M provides strong 14.86x coverage of stock compensation 7.45M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 110.71M barely covers its investment activities of (55.40M), with a coverage ratio of -2, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 110.71M provides thin coverage of dividend payments of (15.75M) with a -7.03 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (55.40M) provide weak support for R&D spending of 18.71M, which is -2.96x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 110.71M is outpaced by equity issuance of (40.28M) (-2.75 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 758M provide limited buffer against comprehensive income items of (30.82M), which is -24.59x, indicating elevated exposure to market risks.

Concentration Risk Type Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Farm & Heavy Construction Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CAT Caterpillar Inc 483.60 Bn 124.96 8.76 43.33 Bn
2 DE Deere & Co 188.47 Bn 68.51 5.30 63.94 Bn
3 PCAR Paccar Inc 68.19 Bn 57.51 3.81 15.85 Bn
4 CNH CNH Industrial N.V. 16.63 Bn 27.85 0.93 27.17 Bn
5 AGCO Agco Corp /De 10.86 Bn 33.29 1.16 2.56 Bn
6 OSK Oshkosh Corp 10.81 Bn 16.71 1.04 1.10 Bn
7 TEX Terex Corp 4.57 Bn 20.69 0.84 2.58 Bn
8 ALG Alamo Group Inc 2.46 Bn 38.76 2.10 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.74 1.36
EV to Cash from Ops. EV/CFO 72.71 2.52
EV to Debt EV to Debt 10.95 36.19
EV to EBIT EV/EBIT 34.47 19.84
EV to EBITDA EV/EBITDA 24.01 11.98
EV to Free Cash Flow [EV/FCF] EV/FCF 138.03 10.22
EV to Market Cap EV to Market Cap 1.01 2.67
EV to Revenue EV/Rev 2.68 2.22
Price to Book Value [P/B] P/B 5.25 2.56
Price to Earnings [P/E] P/E 64.57 19.56
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.66 116,909.42
Dividend Payout Ratio % Div Payout % (Qtr) 21.50 51.44
Dividend per Basic Share Div per Share (Qtr) 1.46 1.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.78 11.55
Interest Coverage Int. cover (Qtr) 88.28 6.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -53.40 -4.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.86 27.84
Dividend Growth (1y) % Div 1y % (Qtr) 2.82 -2.90
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.45 22.54
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.15 2.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 15.86 36.64
EBT Growth (1y) % EBT 1y % (Qtr) 17.91 2,839.65
EPS Growth (1y) % EPS 1y % (Qtr) 8.80 154.78
FCF Growth (1y) % FCF 1y % (Qtr) -2.23 -12.49
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.36 -11.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 1.00
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.07
Cash Ratio Cash Ratio (Qtr) 1.34 0.46
Current Ratio Curr Ratio (Qtr) 3.42 2.51
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 0.43
Interest Cover Ratio Int Coverage (Qtr) 88.28 6.02
Times Interest Earned Times Interest Earned (Qtr) 88.28 6.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.50 -7.57
EBIT Margin % EBIT Margin % (Qtr) 14.34 -11.88
EBT Margin % EBT Margin % (Qtr) 14.18 -14.87
Gross Margin % Gross Margin % (Qtr) 31.70 19.78
Net Profit Margin % Net Margin % (Qtr) 11.00 -16.22