January 15, 2017 NYSE: LNN

LINDSAY CORP BUY A+

A

A-

HOLD

B+

B

Annual Dividend Rate $1.16

B-

C+

C

Annual Dividend Yield 1.55%

SELL C-

D

Beta 0.80

Sector: Industrials LNN BUSINESS DESCRIPTION Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally.

D+

D-

E+

E

E-

F

HOLD

Market Capitalization $793.4 Million

52-Week Range $62.99-$89.98

Sub-Industry: Agricultural & Farm Machinery

Weekly Price: (US$)

SMA (50)

RATING SINCE

08/16/2016

Price as of 1/12/2017 $74.48

Source: S&P

SMA (100)

1 Year

2 Years 90 85 80

STOCK PERFORMANCE (%) 3 Mo. Price Change 7.47

1 Yr. 12.98

75

3 Yr (Ann) -3.47

70 GROWTH (%) Last Qtr -9.24 -87.43 -87.10

Revenues Net Income EPS

RETURN ON EQUITY (%) LNN Q1 2017 5.71 Q1 2016 9.11 Q1 2015 13.84

12 Mo. -7.64 -44.74 -38.82

3 Yr CAGR -9.92 -40.11 -36.00

65 60 Rating History

BUY Ind Avg 18.43 21.66 20.20

S&P 500 12.00 12.28 14.59

55.58

28.89

25.49

LNN

Ind Avg

S&P 500

2016

2 1 0 2017

2016

RECOMMENDATION We rate LINDSAY CORP (LNN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. HIGHLIGHTS The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, LNN has a quick ratio of 2.04, which demonstrates the ability of the company to cover short-term liquidity needs. LNN, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

Q1 0.08

Q4 0.73

Q3 0.90

Q2 -0.37

Q1 0.62

Q4 -0.28

Q3 1.10

EPS ANALYSIS¹ ($)

Q2 0.75

BUY HOLD

COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History

P/E COMPARISON

Q1 0.62

HOLD

Volume in Millions

2015

2015

HOLD

2017

NA = not available NM = not meaningful 1 Compustat fiscal year convention is used for all fundamental data items.

The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Machinery industry and the overall market, LINDSAY CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500. The gross profit margin for LINDSAY CORP is currently lower than what is desirable, coming in at 29.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.79% trails that of the industry average.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 15, 2017

PAGE 1

January 15, 2017 NYSE: LNN

LINDSAY CORP Sector: Industrials Agricultural & Farm Machinery Source: S&P Annual Dividend Rate $1.16

Annual Dividend Yield 1.55%

PEER GROUP ANALYSIS

5%

AIN

FA

TTC

BL E

CNHI MTOR ATU

DE

Price as of 1/12/2017 $74.48

UN FA B RA VO

ARTW

LE

-2.5%

The Machinery industry continues to experience consolidation, globalization, and cost containment with the biggest companies expected to continue to dominate and generate the most revenue.

Manufactures have been moving to lower cost areas for production in order to contain costs. This allows the company to achieve better margins and improve competitiveness. Additionally, another positive along with this is that it allows the company to be closer to the emerging demand base and thus its new customers.

TWI

-25%

52-Week Range $62.99-$89.98

The challenges the industry faces include the surges in commodity costs, which lowers margins. The result of these commodity increases have been higher prices, which customers have generally seemed to absorb as surcharges have helped cover the difference, though there is no guarantee this will continue. Steel and copper in particular saw the highest increase in prices.

RA VO

ALG

Revenue Growth (TTM)

Market Capitalization $793.4 Million

INDUSTRY ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

LNN AGCO

Beta 0.80

22.5%

EBITDA Margin (TTM) Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $14.4 Million and $33.3 Billion. Companies with NA or NM values do not appear. *EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization.

The three main segments of the machinery industry are flow control equipment, electrical equipment and industrial automation. The need for products from these groups is driven on a macro-level to a certain degree, which depends on the strength of the world economy as well as government funding. Geographically, the outlook for the industry remains positive in North America, Latin America, and Asia, with a neutral forecast for Europe. As with any industry that exports products, the machinery industry is helped by a weaker U.S. dollar and less competitive as the dollar strengthens. The machinery industry is not heavily regulated, though there has been an increased interest by the government to raise energy efficiency of electrical equipment. Along with improved efficiency, the products that will likely continue to support growth in the industry are wireless components and sensors - especially for use in detecting biological or chemical factors. Pump and valve technology will always be in demand in order to fulfill the ongoing need for the treatment of drinkable water and wastewater treatment. Finally, robotics orders have rebounded after suffering from the downturn in the automotive market. The key players in the industry include Caterpillar (CAT), Deere (DE), Illinois Tool Works (ITW), Cummins (CMI), Flowserve (FLS), and Ingersoll-Rand (IR).

5%

REVENUE GROWTH AND EARNINGS YIELD PEER GROUP: Machinery

AIN FA BL

ALG

RA VO

TTC

E

CNHI

MTOR

TWI UN B RA VO

ARTW

LE

-25%

FA

Revenue Growth (TTM)

DE LNN AGCO ATU

-20%

50%

Earnings Yield (TTM)

Ticker LNN ALG TTC TWI AGCO DE ATU ARTW AIN CNHI MTOR

Company Name LINDSAY CORP ALAMO GROUP INC TORO CO TITAN INTERNATIONAL INC AGCO CORP DEERE & CO ACTUANT CORP ARTS WAY MFG INC ALBANY INTL CORP CNH INDUSTRIAL NV MERITOR INC

Recent Price ($) 74.48 77.27 56.49 10.74 60.65 105.17 26.85 3.50 45.75 8.89 13.40

Market Cap ($M) 793 889 6,107 581 4,868 33,326 1,589 14 1,322 12,105 1,181

Price/ Earnings 55.58 20.33 27.36 NM 31.42 21.86 NM NM 19.64 NM 2.07

Net Sales TTM ($M) 505.18 863.66 2,392.18 1,266.01 7,275.50 26,569.00 1,110.19 23.40 744.26 23,856.00 3,199.00

Net Income TTM ($M) 14.20 43.84 230.99 -72.16 160.20 1,523.90 -115.66 -0.43 74.52 -116.00 573.00

The peer group comparison is based on Major Agricultural & Farm Machinery companies of comparable size.

Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -20.6% and 2.8%. Companies with NA or NM values do not appear.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 15, 2017

PAGE 2

January 15, 2017 NYSE: LNN

LINDSAY CORP Sector: Industrials Agricultural & Farm Machinery Source: S&P Annual Dividend Rate $1.16

Annual Dividend Yield 1.55%

Beta 0.80

Market Capitalization $793.4 Million

52-Week Range $62.99-$89.98

Price as of 1/12/2017 $74.48

COMPANY DESCRIPTION Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company's Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand. This segment also offers repair and replacement parts for irrigation systems and controls; water pumping stations and controls for agriculture, golf, landscape, and municipal markets under the Watertronics brand; filtration solutions for groundwater, agriculture, industrial, and heat transfer markets under the LAKOS brand; and M2M communication technology solutions, data acquisition and management systems, and custom electronic equipment under the Elecsys brand. Its Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used to enhance highway safety at locations, such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards. This segment also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies. The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers. Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of LNN shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock’s valuation. Please refer to our Valuation section on page 5 for further information.

LINDSAY CORP 2222 North 111th Street Omaha, NE 68164 USA Phone: 402-829-6800 Fax: 402-829-6834 http://www.lindsay.com Employees: 1000

THESTREET RATINGS RESEARCH METHODOLOGY

FACTOR

SCORE

0.5

Growth out of 5 stars weak Measures the growth of both the company's income statement and cash flow. On this factor, LNN has a growth score better than virtually none of the stocks we rate

strong

2.0

Total Return out of 5 stars weak Measures the historical price movement of the stock. The stock performance of this company has beaten 30% of the companies we cover.

strong

3.5

Efficiency out of 5 stars weak Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 60% of the companies we review.

strong

2.5

Price volatility out of 5 stars weak Measures the volatility of the company's stock price historically. The stock is less volatile than 40% of the stocks we monitor.

strong

4.5

Solvency out of 5 stars weak Measures the solvency of the company based on several ratios. The company is more solvent than 80% of the companies we analyze.

strong

3.5

Income out of 5 stars weak Measures dividend yield and payouts to shareholders. The company's dividend is higher than 60% of the companies we track.

strong

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 15, 2017

PAGE 3

January 15, 2017 NYSE: LNN

LINDSAY CORP Sector: Industrials Agricultural & Farm Machinery Source: S&P Annual Dividend Rate $1.16

Annual Dividend Yield 1.55%

Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial

NA

2.73 E

3.11 E

NA

2017(E)

2018(E)

Beta 0.80

Market Capitalization $793.4 Million

52-Week Range $62.99-$89.98

Price as of 1/12/2017 $74.48

FINANCIAL ANALYSIS LINDSAY CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LINDSAY CORP is extremely liquid. Currently, the Quick Ratio is 2.04 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow. During the same period, stockholders' equity ("net worth") has decreased by 11.89% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.

INCOME STATEMENT Net Sales ($mil) EBITDA ($mil) EBIT ($mil) Net Income ($mil)

Q1 FY17 110.39 6.77 2.74 0.87

Q1 FY16 121.62 16.04 11.75 6.94

Q1 FY17 103.06 480.94 117.12 248.19

Q1 FY16 129.26 521.62 117.32 281.69

Q1 FY17 29.36% 6.13% 2.48% 1.05 2.95% 5.71%

Q1 FY16 31.83% 13.19% 9.66% 1.05 4.92% 9.11%

Q1 FY17 3.25 0.32 1.21 2.26

Q1 FY16 3.53 0.29 1.20 9.82

Q1 FY17 11 0.29 0.08 23.30 NA 125,327

Q1 FY16 11 0.28 0.62 25.19 NA 84,145

BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) Total Debt ($mil) Equity ($mil) PROFITABILITY Gross Profit Margin EBITDA Margin Operating Margin Sales Turnover Return on Assets Return on Equity DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % Avg Daily Volume

2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 15, 2017

PAGE 4

January 15, 2017 NYSE: LNN

LINDSAY CORP Sector: Industrials Agricultural & Farm Machinery Source: S&P Annual Dividend Rate $1.16

Annual Dividend Yield 1.55%

Beta 0.80

Market Capitalization $793.4 Million

52-Week Range $62.99-$89.98

Price as of 1/12/2017 $74.48

2 Year Chart

Price/Earnings

HOLD: $68.01

HOLD: $64.06

BUY: $66.80 HOLD: $71.28

VALUATION HOLD. LINDSAY CORP's P/E ratio indicates a significant premium compared to an average of 28.89 for the Machinery industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 3.20 indicates a premium versus the S&P 500 average of 2.84 and a discount versus the industry average of 4.40. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount.

BUY: $84.71

RATINGS HISTORY Our rating for LINDSAY CORP has not changed since 8/16/2016. As of 1/12/2017, the stock was trading at a price of $74.48 which is 17.2% below its 52-week high of $89.98 and 18.2% above its 52-week low of $62.99. $90 $80 $70

2015

2016

1

2

3

premium

LNN 55.58 Peers 28.89 • Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. • LNN is trading at a significant premium to its peers. Price/Projected Earnings

From Buy Hold Buy Hold Buy Buy

To Hold Buy Hold Buy Hold Buy

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS

1

2

3

Price/Book

1

2

5

3

4

5

1

2

3

4

5

3

4

5

discount

LNN 23.90 Peers 14.03 • Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. • LNN is trading at a significant premium to its peers. Price to Earnings/Growth

1

2

3

premium

4

5

discount

LNN 1.18 Peers 3.83 • Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. • LNN trades at a significant discount to its peers. Earnings Growth

1

2

3

4

lower

5 higher

LNN -38.82 Peers -21.32 • Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. • However, LNN is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth

discount

LNN 1.57 Peers 1.90 • Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. • LNN is trading at a discount to its industry on this measurement.

2

premium

discount

LNN 3.20 Peers 4.40 • Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. • LNN is trading at a significant discount to its peers. premium

1

Price/CashFlow

discount

premium

Price/Sales

30.45% Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss.

4

LNN 23.99 Peers 22.76 • Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. • LNN is trading at a premium to its peers.

(as of 1/12/2017)

41.72% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months.

5

discount

premium

MOST RECENT RATINGS CHANGES Date Price Action 8/16/16 $71.28 Downgrade 7/5/16 $66.80 Upgrade 4/5/16 $68.01 Downgrade 3/2/16 $73.06 Upgrade 10/16/15 $64.06 Downgrade 1/12/15 $84.71 No Change

4

1

2

3

lower

4

5 higher

LNN -7.64 Peers -5.00 • Lower. A sales growth rate that trails the industry implies that a company is losing market share. • LNN significantly trails its peers on the basis of sales growth

DISCLAIMER:

27.83% Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns.

TheStreet Ratings 14 Wall Street, 15th Floor New York, NY 10005 www.thestreet.com Research Contact: 212-321-5381 Sales Contact: 866-321-8726

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at http://www.thestreet.com/static/about/terms-of-use.html.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.

Report Date: January 15, 2017

PAGE 5