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Lindsay Australia (ASX:LAU) Shares Eye Fair Value After Record Growth

Simply Wall St · 2d ago

Lindsay Australia stock closed at A$0.77 on Tuesday after a strong run over the past quarter. However, the real story sits inside a freight network that just produced record full year results. Revenue reached about A$1.07b and underlying net profit after tax came in at A$27.6m, both lifted by the SRT Logistics integration and a bigger refrigerated transport footprint.

For short term traders, the recent price strength may already feel rich. Long term holders will focus on whether a 12.3x trailing P/E and a discounted valuation against a A$1.32 fair value estimate adequately reflect the new scale of the business.

Is Lindsay Australia trading at a genuine discount at 12.3x P/E compared to a A$1.32 fair value estimate, or is the market pricing in something you are missing? Compare the full valuation picture on our valuation analysis for Lindsay Australia

FY 2026 Earnings Summary

  • Revenue, FY 2026 vs. FY 2025: A$1,072.7m vs. A$850.5m (+26.2%)
  • Net Income (Underlying NPAT), FY 2026 vs. FY 2025: A$27.6m vs. A$21.7m (+27.1%)
  • Basic EPS, FY 2026 vs. FY 2025: A$0.076 vs. A$0.069 (+10%)
  • Underlying EBITDA Margin, FY 2026 vs. FY 2025: A$127.8m underlying EBITDA on A$1,072.7m revenue compared with A$101.7m on A$850.5m revenue (EBITDA up 25.6%)

Prefer clean charts instead of another wall of earnings tables and ratios? See Lindsay Australia's full financial picture, including a clear valuation breakdown, in the interactive company report for Lindsay Australia.

ASX:LAU Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
ASX:LAU Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Lindsay Australia: Earnings Momentum Backs Integrated Model

For bullish investors, Lindsay Australia’s story of an integrated food supply chain platform is broadly in sync with the latest results. Revenue of A$1,072.7m and underlying NPAT of A$27.6m both moved higher, with EPS up 10% and underlying EBITDA also rising. Transport, Rural and Hunter each contributed to EBIT growth, which supports the idea that a multi segment model can capture value across the chain. Improving return on invested capital to 13.9% and higher dividends signal that recent capital spending is starting to show through in financial outcomes.

Risks Remain Around Margins, Capital And Leverage

The cautious view on Lindsay Australia still has some backing in the numbers. Return on invested capital of 13.9% is below the 15% to 20% target, so the enlarged asset base is not yet earning management’s goal. Net leverage at 1.92x, with guidance that it may sit above the preferred range in H1 FY27, ties the story more tightly to execution on new contracts and utilisation. Operating cash conversion of 61% reported, even if higher on a normalised basis, also reminds you that growth is capital hungry.

Scan our independent risk analysis for Lindsay Australia which shows 1 important warning sign to see whether leverage, cash conversion and dividend stability are early signals of deeper issues.

Stay Ahead With Simply Wall St

If Lindsay Australia looks interesting after its latest A$1,072.7m revenue and A$27.6m underlying NPAT, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for a better entry point. Once you are invested, use the Portfolio Command Center to keep your holdings organised and focus on the updates that matter most. For a longer term view, tap into thousands of investor opinions through the Community and see how others are thinking about risks and opportunities. This is a simple way to spot hidden catalysts or early warning signs sooner and stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.