Lindsay Corporation Intrinsic Value Calculation – Lindsay Corp. Fair Value Estimate of US$121 Significantly Higher Than Current Share Price
June 28, 2023
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Lindsay Corporation ($NYSE:LNN) (NYSE: LNN) is a diversified industrial company that manufactures and distributes irrigation equipment, infrastructure and road safety products, and railroad and truck transportation services. The company’s strong reputation for quality products and service has been a key driver of its success. The fair value of Lindsay Corporation’s stock, as estimated through the 2 Stage Free Cash Flow to Equity, is US$121, while its current share price is US$85. This discrepancy suggests there is significant room for the stock price to increase. Analysts have noted that the company’s strong presence in the global irrigation market, combined with its competitive position in other industries, will help drive higher long-term returns for investors.
Lindsay’s current share price appears to be undervalued, considering the fair value estimate of US$121. This presents a compelling opportunity for investors who are looking for returns from a consistent and reliable company. With its diversified business operations and strong market position, Lindsay Corporation is well-positioned to continue delivering growth and value for its shareholders.
Stock Price
Tuesday saw an increase in Lindsay Corporation’s (LINDSAY CORPORATION) stock price, opening at $126.1 and closing at $125.6, up by 0.4% from the previous closing price of $125.1. This marks a significant change in the stocks fair value estimate, which stands at US$121. This is much higher than the current share price, which suggests that the market may be undervaluing the company. As such, potential investors may find this to be an attractive buying opportunity, as they can purchase shares at a relatively low price compared to the estimated value of the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lindsay Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 746.86 | 79.27 | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lindsay Corporation. More…
| Operations | Investing | Financing |
| 46.79 | 0.95 | -17.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lindsay Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 709.08 | 286.81 | 36.78 |
Key Ratios Snapshot
Some of the financial key ratios for Lindsay Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.7% | 57.4% | 15.1% |
| FCF Margin | ROE | ROA |
| 4.1% | 17.0% | 9.9% |
Analysis – Lindsay Corporation Intrinsic Value Calculation
We at GoodWhale conducted an analysis of LINDSAY CORPORATION‘s wellbeing and found that its intrinsic value is around $167.7, calculated using our proprietary Valuation Line. Currently, the market is trading LINDSAY CORPORATION’s stock at $125.6, which is undervalued by 25.1%. Our analysis of existing market data has revealed that investors are missing out on the potential appreciation of shares of this company. Thus, we recommend investors to take advantage of this opportunity and buy LINDSAY CORPORATION’s stock to reap potential rewards in the future. We believe that investing in this company at the current market price would be beneficial for investors in the long run. More…
Peers
The Company operates through three segments: Irrigation, Infrastructure, and Industrial. The Irrigation segment offers a wide range of center pivot, lateral move, and hose reel irrigation systems that are designed to meet the specific water application needs of agriculture customers. The Infrastructure segment provides precast concrete pipe and manhole products used in sewer, water, and storm drainage applications. The Industrial segment offers steel pipes for various water-related applications, including oil and gas gathering, water transmission, mining, and agricultural drainage.
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Summary
Lindsay Corporation is a publicly traded irrigation equipment manufacturer and infrastructure product producer. When conducting an investing analysis of Lindsay Corporation, one of the key metrics to consider is the two-stage free cash flow to equity model. This method estimates the fair value of Lindsay Corporation’s stock and is currently estimated to be around $121 per share. Other key metrics to consider are the dividend yield, the beta, and the earnings per share. By analyzing these metrics, investors can gain insight into the stock’s performance and whether it is a good investment option.
Additionally, investors should also consider the company’s financial position, its competitive landscape, and its position in the industry before making any decisions.
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