Lindsay Corporation manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products. The company was founded in 1954 and is based in Omaha, Nebraska.
LNN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lindsay Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lindsay Corp ranked in the 10th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 91.33%. In terms of the factors that were most noteworthy in this DCF analysis for LNN, they are:
Its compound free cash flow growth rate, as measured over the past 5.78 years, is -0.17% -- higher than only 11.8% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than only 21.54% of its sector Industrials.
The business' balance sheet reveals debt to be 12% of the company's capital (with equity being the remaining amount). Approximately only 24.88% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ATTO, CWST, TRIP, AAWW, and ADSW can be thought of as valuation peers to LNN, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, announced today that Tim Hassinger, President and Chief Executive Officer, and Brian Ketcham, Senior Vice President and Chief Financial Officer, will participate in the Stifel 2020 Cross Sector Insight Conference, being held June 8-10, 2020. Management will participate in a fireside chat on June 8 at 8:40 a.m. ET and will host one-on-one calls with investors throughout the day.
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