Since September 2025, Lindsay has been in a holding pattern, posting a small loss of 4.1% while floating around $132.87. The stock also fell short of the S&P 500’s 5.7% gain during that period.
Is now the time to buy Lindsay, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Is Lindsay Not Exciting?
We're sitting this one out for now. Here are three reasons there are better opportunities than LNN and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Lindsay grew its sales at a mediocre 7% compounded annual growth rate. This fell short of our benchmark for the industrials sector.
2. Projected Revenue Growth Shows Limited Upside
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Lindsay’s revenue to stall, close to its 7% annualized growth for the past five years. This projection is underwhelming and suggests its newer products and services will not accelerate its top-line performance yet.
3. New Investments Fail to Bear Fruit as ROIC Declines
ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Unfortunately, Lindsay’s ROIC averaged 3.2 percentage point decreases each year over the last few years. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities.
Final Judgment
Lindsay isn’t a terrible business, but it doesn’t pass our bar. With its shares trailing the market in recent months, the stock trades at 21.3× forward P/E (or $132.87 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We're fairly confident there are better investments elsewhere. We’d suggest looking at our favorite semiconductor picks and shovels play.
Stocks We Like More Than Lindsay
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