DCF Tool

LNN

Lindsay Corporation – Farm Machinery and Equipment Manufacturing
Lindsay Corporation is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world's rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems and FieldNET® remote irrigation management and scheduling technology as well as irrigation consulting and design and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world's roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline™ brands.
Analysis Results
Intrinsic Value $179.45
Latest Price $172.06
Relative Value 4% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 79.7 73.9
2024 91.1 78.5
2025 104 83.4
2026 119 88.6
2027 136 94.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2430 million. This corresponds to a present value of 1560 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 418 million. Adding in the terminal value gives a total present value of 1980 million.

There are presently 11.0 million outstanding shares, so the intrinsic value per share is 179.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 477,101,000
Current Cash 116,508,000
Current Liabilities 160,942,000
Current Debt 222,000
Non-Cash Working Capital (NCWC) 199,873,000
Change in NCWC 68,504,000
EBIT 94,643,000
Tax Provision 22,399,000
Depreciation and Amortization 20,178,000
Capital Expenditure -15,595,000
Unlevered Free Cash Flow 143,603,940
Current Assets 416,103,000
Current Cash 146,711,000
Current Liabilities 138,240,000
Current Debt 217,000
Non-Cash Working Capital (NCWC) 131,369,000
Change in NCWC 26,548,000
EBIT 54,107,000
Tax Provision 7,814,000
Depreciation and Amortization 19,177,000
Capital Expenditure -26,511,000
Unlevered Free Cash Flow 64,929,937
Current Assets 347,935,000
Current Cash 140,914,000
Current Liabilities 102,395,000
Current Debt 195,000
Non-Cash Working Capital (NCWC) 104,821,000
Change in NCWC 457,000
EBIT 54,202,000
Tax Provision 10,214,000
Depreciation and Amortization 19,396,000
Capital Expenditure -21,445,000
Unlevered Free Cash Flow 41,275,331
Current Assets 313,490,000
Current Cash 127,204,000
Current Liabilities 82,131,000
Current Debt 209,000
Non-Cash Working Capital (NCWC) 104,364,000
Change in NCWC 13,989,000
EBIT 6,115,000
Tax Provision -65,000
Depreciation and Amortization 14,018,000
Capital Expenditure -23,211,000
Unlevered Free Cash Flow 10,911,000
Current Assets 331,051,000
Current Cash 160,787,000
Current Liabilities 80,094,000
Current Debt 205,000
Non-Cash Working Capital (NCWC) 90,375,000
Change in NCWC 10,897,000
EBIT 38,563,000
Tax Provision 13,576,000
Depreciation and Amortization 16,514,000
Capital Expenditure -11,054,000
Unlevered Free Cash Flow 39,455,158
Current Assets 292,934,000
Current Cash 121,620,000
Current Liabilities 92,037,000
Current Debt 201,000
Non-Cash Working Capital (NCWC) 79,478,000
Change in NCWC -23,727,000
EBIT 40,201,000
Tax Provision 12,536,000
Depreciation and Amortization 16,678,000
Capital Expenditure -8,863,000
Unlevered Free Cash Flow 10,178,409
Current Assets 292,124,000
Current Cash 101,246,000
Current Liabilities 87,870,000
Current Debt 197,000
Non-Cash Working Capital (NCWC) 103,205,000
Change in NCWC 15,050,000
EBIT 34,375,000
Tax Provision 9,021,000
Depreciation and Amortization 16,881,000
Capital Expenditure -11,496,000
Unlevered Free Cash Flow 44,222,152
Current Assets 322,167,000
Current Cash 139,093,000
Current Liabilities 95,112,000
Current Debt 193,000
Non-Cash Working Capital (NCWC) 88,155,000
Change in NCWC 2,306,000
EBIT 50,695,000
Tax Provision 20,442,000
Depreciation and Amortization 16,412,000
Capital Expenditure -15,244,000
Unlevered Free Cash Flow 32,002,475
Current Assets 374,058,000
Current Cash 171,842,000
Current Liabilities 116,367,000
Current Debt 0
Non-Cash Working Capital (NCWC) 85,849,000
Change in NCWC -28,923,000
EBIT 78,358,000
Tax Provision 27,143,000
Depreciation and Amortization 14,793,000
Capital Expenditure -17,715,000
Unlevered Free Cash Flow 19,472,491
Current Assets 368,791,000
Current Cash 151,927,000
Current Liabilities 102,092,000
Current Debt 0
Non-Cash Working Capital (NCWC) 114,772,000
Change in NCWC 35,504,000
EBIT 107,061,000
Tax Provision 36,737,000
Depreciation and Amortization 12,600,000
Capital Expenditure -11,136,000
Unlevered Free Cash Flow 107,376,219
Current Assets 298,865,000
Current Cash 143,444,000
Current Liabilities 80,438,000
Current Debt 4,285,000
Non-Cash Working Capital (NCWC) 79,268,000
Change in NCWC 4,775,000
EBIT 65,510,000
Tax Provision 21,831,000
Depreciation and Amortization 12,468,000
Capital Expenditure -9,890,000
Unlevered Free Cash Flow 50,897,207

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