Lindsay Story

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LNN -- USA Stock  

USD 163.31  0.67  0.41%

While many traders are getting carried away by overanalyzing industrials space, it is reasonable to outline Lindsay Corp. We will try to explain if it is still possible for Lindsay Corp to generate above-average margins. Is the firm operations in 2021 sustainable? Here we are going to cover Lindsay Corp perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a week ago
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Will Lindsay Corp (NYSE:LNN) price increase in May 2021?
The company has 145.72 M in debt with debt to equity (D/E) ratio of 0.48, which is OK given its current industry classification. Lindsay Corp has a current ratio of 3.41, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Macroaxis provides trade recommendations on Lindsay Corp to complement and cross-verify current analyst consensus on Lindsay Corp. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Lindsay Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lindsay Corp based exclusively on its fundamental and basic technical indicators. By analyzing Lindsay Corp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lindsay Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lindsay Corp. We calculate exposure to Lindsay Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lindsay Corp's related companies.

Lindsay Corp Investment Alerts

Lindsay investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Lindsay Corp performance across your portfolios.Please check all investment alerts for Lindsay

Lindsay Corp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Lindsay value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lindsay Corp competition to find correlations between indicators driving the intrinsic value of Lindsay.

How Lindsay utilizes its cash?

To perform a cash flow analysis of Lindsay Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lindsay Corp is receiving and how much cash it distributes out in a given period. The Lindsay Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lindsay Corp Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 39.96 Million

Acquisition by Ibrahim Gokcen of 499 shares of Lindsay Corp subject to Rule 16b-3

Legal trades by Lindsay Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lindsay insider trading alert for grant of common stock by Ibrahim Gokcen, the corporate stakeholder, on 5th of April 2021. This event was filed by Lindsay Corp with SEC on 2021-04-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The entity reported the last year's revenue of 473.78 M. Total Income to common stockholders was 37.38 M with profit before taxes, overhead, and interest of 152.54 M.
 2018 2019 2020 2021 (projected)
Consolidated Income2.17 M38.63 M34.77 M32 M
Direct Expenses329.46 M322.15 M370.47 M413.24 M

Margins Breakdown

Lindsay profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Lindsay Corp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Lindsay Corp profit margins.
Operating Margin12.47
EBITDA Margin0.13
Gross Margin0.36
Profit Margin0.0638

Lindsay Corp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. Also, Lindsay Corp Average Assets is increasing over the last 8 years.

Lindsay technical analysis suggests possible come-back

The information ratio is down to 0.15 as of today. Lindsay Corp has relatively low volatility with skewness of 0.43 and kurtosis of 0.06. However, we advise all investors to independently investigate Lindsay Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lindsay Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lindsay Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

Whereas few other entities under the farm & heavy construction machinery industry are still a bit expensive, Lindsay Corp may offer a potential longer-term growth to institutional investors. All things considered, as of the 6th of April 2021, we believe Lindsay Corp is currently fairly valued. It barely shadows the market and projects very low probability of distress in the next two years. Our primary 30 days advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Lindsay Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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