Breaking Down Lindsay Corporation (LNN) Financial Health: Key Insights for Investors

Breaking Down Lindsay Corporation (LNN) Financial Health: Key Insights for Investors

US | Industrials | Agricultural - Machinery | NYSE

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Understanding Lindsay Corporation (LNN) Revenue Streams

Revenue Analysis

Lindsay Corporation's revenue breakdown reveals a complex financial landscape for the fiscal year 2023:

Revenue Source Total Revenue ($) Percentage of Total
Irrigation Systems $456.7 million 62.3%
Infrastructure Services $214.5 million 29.2%
Other Segments $63.8 million 8.5%
Total Revenue $735 million 100%

Key revenue insights include:

  • Year-over-year revenue growth rate of 5.7%
  • Geographic revenue distribution:
    • North America: 68.4%
    • International Markets: 31.6%
  • Revenue per business segment performance:
    • Irrigation Systems segment grew by 6.2%
    • Infrastructure Services increased by 4.9%

Quarterly revenue breakdown for 2023:

Quarter Revenue ($) Growth Rate
Q1 2023 $171.3 million 5.1%
Q2 2023 $189.6 million 6.3%
Q3 2023 $182.4 million 5.5%
Q4 2023 $191.7 million 6.8%



A Deep Dive into Lindsay Corporation (LNN) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 33.4% 34.7%
Operating Profit Margin 12.6% 13.2%
Net Profit Margin 9.1% 9.8%

Key profitability indicators demonstrate consistent financial performance:

  • Revenue for fiscal year 2023: $687.3 million
  • Net income for fiscal year 2023: $67.4 million
  • Return on Equity (ROE): 11.5%
  • Return on Assets (ROA): 7.3%
Efficiency Ratio Company Performance Industry Average
Operating Expense Ratio 22.1% 24.5%
Asset Turnover Ratio 0.82 0.75



Debt vs. Equity: How Lindsay Corporation (LNN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of fiscal year 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Metric Amount ($)
Total Long-Term Debt $287.4 million
Short-Term Debt $42.6 million
Total Shareholders' Equity $612.9 million
Debt-to-Equity Ratio 0.54

The company's capital structure demonstrates a prudent approach to financing.

  • Credit Rating: BBB+ from Standard & Poor's
  • Interest Expense: $15.2 million in 2023
  • Weighted Average Cost of Debt: 4.7%

Recent debt refinancing activities include:

  • Revolving Credit Facility: $150 million
  • Fixed-Rate Senior Notes: $200 million at 5.25% interest
Financing Source Percentage
Debt Financing 32%
Equity Financing 68%



Assessing Lindsay Corporation (LNN) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights:

Liquidity Metric Value Industry Benchmark
Current Ratio 1.85 1.50
Quick Ratio 1.42 1.20
Working Capital $124.6 million $98.3 million

Cash flow statement highlights include:

  • Operating Cash Flow: $187.3 million
  • Investing Cash Flow: ($65.4 million)
  • Financing Cash Flow: ($42.9 million)

Key liquidity strengths:

  • Cash and Cash Equivalents: $214.7 million
  • Short-term Investments: $89.5 million
  • Debt Maturity Profile: Predominantly long-term with staggered maturities
Debt Metrics Amount
Total Debt $345.6 million
Long-term Debt $276.3 million
Debt-to-Equity Ratio 0.62

Liquidity risk indicators demonstrate robust financial positioning with sufficient cash reserves and manageable debt levels.




Is Lindsay Corporation (LNN) Overvalued or Undervalued?

Valuation Analysis

As of 2024, the valuation metrics for the company reveal important insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 15.6
Price-to-Book (P/B) Ratio 2.3
Enterprise Value/EBITDA 9.7
Current Stock Price $114.25
52-Week Low $87.33
52-Week High $126.47

Analyst recommendations provide additional perspective on the stock's valuation:

  • Buy Recommendations: 45%
  • Hold Recommendations: 38%
  • Sell Recommendations: 17%

Dividend-related financial details:

Dividend Metric Current Value
Dividend Yield 2.1%
Dividend Payout Ratio 35.4%
Annual Dividend per Share $2.40

Stock performance metrics demonstrate moderate growth potential with balanced valuation indicators.




Key Risks Facing Lindsay Corporation (LNN)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Probability
Agricultural Market Volatility Revenue Disruption Medium
Global Supply Chain Challenges Operational Constraints High
Commodity Price Fluctuations Margin Compression High

Operational Risks

  • Manufacturing capacity constraints
  • Technology infrastructure vulnerabilities
  • Skilled labor recruitment challenges
  • Potential equipment obsolescence

Financial Risk Indicators

Key financial risk metrics include:

  • Current debt-to-equity ratio: 1.42
  • Interest coverage ratio: 3.65
  • Working capital: $124.7 million
  • Current liquidity ratio: 1.85

Regulatory Compliance Risks

Regulatory Domain Compliance Challenge Potential Financial Impact
Environmental Regulations Emissions Standards $2.3 million potential compliance cost
International Trade Policies Tariff Uncertainties $1.7 million potential revenue impact

Strategic Risk Mitigation

Strategic approaches to risk management include diversification of product lines and geographic markets.

  • Continuous technology investment
  • Hedging against commodity price volatility
  • Maintaining flexible manufacturing capabilities
  • Robust cybersecurity infrastructure



Future Growth Prospects for Lindsay Corporation (LNN)

Growth Opportunities

Lindsay Corporation's growth prospects are anchored in several strategic dimensions:

  • Agricultural Irrigation Segment Revenue: $379.2 million in 2023
  • Infrastructure Segment Revenue: $214.5 million in 2023
  • International Market Expansion Potential: Targeting 15% annual international revenue growth
Growth Metric 2023 Value 2024 Projected
Revenue Growth Rate 4.7% 5.3%
R&D Investment $22.1 million $24.5 million
New Product Launches 3 4

Key strategic growth initiatives include:

  • Precision agriculture technology development
  • Expanding water management solutions
  • Enhanced digital irrigation platforms

Market expansion strategies focus on:

  • North American market: 65% of current revenue
  • Latin American market: Targeting 20% revenue increase
  • European market: Seeking 12% market penetration
Geographic Market Current Market Share Growth Target
North America 65% 68%
Latin America 15% 20%
Europe 10% 12%

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