Is Lindsay price going to go insane in August?

The firm current daily volatility is 3.39 percent, with a beta of 0.02 and alpha of 0.13 over DOW. Lindsay Piotroski F Score is 6 - Healthy. Lindsay secures a last-minute Real Value of $91.37 per share. The latest price of the firm is $90.6. At this time, the firm appears to be fairly valued. Our model forecasts the value of Lindsay from analyzing the firm fundamentals such as return on equity of 6.65 %, profit margin of 4.09 %, and current valuation of 931.48 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point asset prices and their ongoing real values will merge together.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Lindsay has 146.68 M in debt with debt to equity (D/E) ratio of 0.53, which is OK given its current industry classification. This firm has 146.68 M in debt with debt to equity (D/E) ratio of 0.53, which is OK given its current industry classification. The company has a current ratio of 3.63, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Lindsay financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Lindsay, including all of Lindsay's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Lindsay assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lindsay debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Lindsay Total Debt

Lindsay liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Lindsay has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Lindsay balance sheet include debt obligations and money owed to different Lindsay vendors, workers, and loan providers. Below is the chart of Lindsay main long-term debt accounts currently reported on its balance sheet.
You can use Lindsay financial leverage analysis tool to get a better grip on understanding its financial position

How important is Lindsay's Liquidity

Lindsay financial leverage refers to using borrowed capital as a funding source to finance Lindsay ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lindsay financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lindsay's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lindsay's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Lindsay's total debt and its cash.

Breaking it down a bit more

Lindsay has a beta of 0.0249. Let's try to break down what Lindsay's beta means in this case. As returns on the market increase, Lindsay returns are expected to increase less than the market. However, during the bear market, the loss on holding Lindsay will be expected to be smaller as well. The beta indicator helps investors understand whether Lindsay moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Lindsay deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The modest gains experienced by current holders of Lindsay may encourage investors to take a closer look at the firm as it closed today at a share price of 90.44 on 81,433 in trading volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.39. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Lindsay partners. Lindsay Average Assets is quite stable at the moment.

How will Lindsay institutional investors react to the next slide?

Lindsay last treynor ratio surges over 5.68. Lindsay shows above average downside volatility of 3.66 for selected time horizon. We advise investors to further inspect Lindsay to ensure all market timing and asset allocation strategies are consistent with estimation about Lindsay future alpha.

Our Final Take On Lindsay

While many of the other players under farm & heavy construction machinery industry are still a little expensive, even after the recent corrections, Lindsay may offer a potential longer-term growth to investors. To conclude, as of 2nd of July 2020, our prevailing 30 days 'Buy vs Sell' recommendation on the entity is Cautious Hold. We believe Lindsay is fairly valued with low chance of distress for the next two years. With somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take in new shares of Lindsay or trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lindsay.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Lindsay. Please refer to our Terms of Use for any information regarding our disclosure principles.

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