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Lindsay Corporation (LNN)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$66.86 - $104.31$84.12
Multi-Stage$88.04 - $96.53$92.20
Blended Fair Value$88.16
Current Price$137.23
Upside-35.76%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS2.91%2.12%1.441.421.381.341.301.251.231.191.141.12
YoY Growth--1.86%2.51%3.31%3.06%3.82%2.02%2.84%4.13%2.01%-4.13%
Dividend Yield--1.05%1.07%1.16%0.76%0.89%1.08%1.36%1.18%1.22%1.33%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)74.05
(-) Cash Dividends Paid (M)15.75
(=) Cash Retained (M)58.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.819.265.55
Cash Retained (M)58.3158.3158.31
(-) Cash Required (M)-14.81-9.26-5.55
(=) Excess Retained (M)43.4949.0552.75
(/) Shares Outstanding (M)10.9210.9210.92
(=) Excess Retained per Share3.984.494.83
LTM Dividend per Share1.441.441.44
(+) Excess Retained per Share3.984.494.83
(=) Adjusted Dividend5.435.936.27
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.91%1.91%2.91%
Fair Value$66.86$84.12$104.31
Upside / Downside-51.28%-38.70%-23.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)74.0575.4776.9178.3779.8781.3983.84
Payout Ratio21.27%35.01%48.76%62.51%76.25%90.00%92.50%
Projected Dividends (M)15.7526.4237.5048.9960.9073.2577.55

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.91%1.91%2.91%
Year 1 PV (M)23.9824.2224.46
Year 2 PV (M)30.8931.5132.13
Year 3 PV (M)36.6337.7338.85
Year 4 PV (M)41.3342.9944.70
Year 5 PV (M)45.1247.4049.77
PV of Terminal Value (M)783.22822.81863.98
Equity Value (M)961.161,006.651,053.88
Shares Outstanding (M)10.9210.9210.92
Fair Value$88.04$92.20$96.53
Upside / Downside-35.85%-32.81%-29.66%

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