# LNN Stock: Lindsay Is a Quality Compounder in a Farm Slump — But Is It Too Expensive?

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/lnn-stock-lindsay-is-a-quality-compounder-in-a-farm-slump-but-is-it-too-expensive
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/lnn-stock-lindsay-is-a-quality-compounder-in-a-farm-slump-but-is-it-too-expensive.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-08T02:53:51+00:00
Episode link: https://chargedalpha.podbean.com/e/lnn-stock-lindsay-is-a-quality-compounder-in-a-farm-slump-%e2%80%94-but-is-it-too-expensive/
Audio file: https://mcdn.podbean.com/mf/web/0ijvwairfh6ppsbf/audio_e.mp3
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JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/lnn-stock-lindsay-is-a-quality-compounder-in-a-farm-slump-but-is-it-too-expensive
Duration seconds: 793

## Resource

Lindsay (LNN) Q3 FY2026 — Revenue fell 5% to $160.8M and EPS slipped to $1.53 as the ag down-cycle pressured irrigation, while infrastructure grew 8% and the MENA project lifted backlog. Lindsay is a rare thing: a net-cash, moat-owning compounder (Zimmatic irrigation + the Road Zipper) aggressively buying back its own stock right through a farm recession. The catch is the price — roughly 23x trough earnings. THE CALL: HOLD (3/5, FULLY VALUED) — base-case value ~$111 vs ~$115 today. KEY METRICS: - Q3 revenue: $160.8M (−5% YoY); diluted EPS $1.53 (vs $1.78); operating margin 11.5% (from 14.0%) - Segments: Irrigation $133.0M (−7%) — NA $61.3M (−11%), Int'l $71.7M (−4%); Infrastructure $27.7M (+8%) - Segment operating margin: Infrastructure 19.5%, Irrigation 15.3%, Consolidated 11.5% - Backlog $136.1M (+$19M YoY), lifted by a ~$70M MENA irrigation project (FY2026 revenue) - Balance sheet: cash $154.8M vs debt $114.9M → net cash ~$40M; low beta (0.71) - Capital return: $80.7M buybacks FYTD, dividend raised to $1.48/yr - Valuation: ~$115 after the post-earnings drop, P/E ~21x; 52-week range $97.27–$149.56 - Peers: Valmont (VMI) +6%/~21x, AGCO ~flat/~14x, Deere (DE) −9%/~28x What to watch: North America farmer sentiment and commodity prices, the Brazil credit picture, and the infrastructure / Road Zipper pipeline Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.

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