U.S. Markets closed

Is Lindsay Australia Limited (ASX:LAU) Potentially Underrated?

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Lindsay Australia Limited (ASX:LAU), there's is a highly-regarded dividend payer with a great track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Lindsay Australia here.

Established dividend payer and good value

In the previous year, LAU has ramped up its bottom line by 54%, with its latest earnings level surpassing its average level over the last five years. Not only did LAU outperformed its past performance, its growth also exceeded the Transportation industry expansion, which generated a 3.6% earnings growth. This is an notable feat for the company. LAU's shares are now trading at a price below its true value based on its PE ratio of 11.85x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.

ASX:LAU Income Statement, July 31st 2019

Income investors would also be happy to know that LAU is one of the highest dividend payers in the market, with current dividend yield standing at 5.9%. LAU has also been regularly increasing its dividend payments to shareholders over the past decade.

ASX:LAU Historical Dividend Yield, July 31st 2019

Next Steps:

For Lindsay Australia, there are three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for LAU’s future growth? Take a look at our free research report of analyst consensus for LAU’s outlook.
  2. Financial Health: Are LAU’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LAU? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.