Lindsay's rising ROCE and capital employed are encouraging, indicating successful business reinvestment and higher returns. These promising trends may be underappreciated by investors, potentially making the stock a solid long-term investment.
Lindsay Corporation's in-line P/E ratio omits its weaker earnings forecast. A P/E fall to match growth outlook may upset investors. Balance sheet risks cause unease.
Given Lindsay's rapid earnings growth, its reinvestment of profits into business expansion, along with a conservative payout ratio, the company appears to have strong prospects for future growth and a reduced risk of future dividend cuts.
The positive trends in Lindsay's ROCE and capital employment are encouraging signs for its potential as an investment. The current shareholder return of 34% over the past five years suggests the market may not yet fully recognize Lindsay's promising fundamentals.