Lindsay Corporation Common Stock (LNN)

FairStock Score: 41/100 — MIXED

Key Financials

Strengths

• Generates $66 million in annual free cash flow (5.7% yield on market cap)
• Solid return on equity of 11.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.27, providing financial flexibility
• Altman Z-Score of 4.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Revenue declining at 15.7% year-over-year signals potential demand weakness or market share loss

AI Analysis

Lindsay Corporation Common Stock is a micro-cap industrials company valued at $1.1 billion. The business generates $637 million in annual revenue with a 1.9% net margin and $66 million in free cash flow. From a quality standpoint, Lindsay shows healthy Altman Z-Score of 4.1 and adequate 12% ROE. On valuation, the stock is reasonably priced at 20.2x earnings, with trades above its Graham Number with a negative 42% margin. Growth dynamics show revenue growing at -15.7% and profit growth of -54.7%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 41/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $66 million in annual free cash flow (5.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer