LANCASTER COLONY CORP (LANC) Stock Fundamental Analysis
USA - NASDAQ:LANC - US5138471033 - Common Stock
172.77 USD
+0.97 (+0.56%)
172.87 USD
+0.1 (+0.06%)
Taking everything into account, LANC scores 6 out of 10 in our fundamental rating. LANC was compared to 87 industry peers in the Food Products industry. LANC gets an excellent profitability rating and is at the same time showing great financial health properties. LANC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LANC was profitable.
LANC had a positive operating cash flow in the past year.
LANC had positive earnings in each of the past 5 years.
In the past 5 years LANC always reported a positive cash flow from operatings.
1.2 Ratios
LANC has a Return On Assets of 13.31%. This is amongst the best in the industry. LANC outperforms 97.83% of its industry peers.
LANC has a Return On Equity of 17.07%. This is amongst the best in the industry. LANC outperforms 88.04% of its industry peers.
The Return On Invested Capital of LANC (16.09%) is better than 94.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LANC is significantly below the industry average of 28.37%.
The last Return On Invested Capital (16.09%) for LANC is above the 3 year average (14.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.31% | ||
| ROE | 17.07% | ||
| ROIC | 16.09% |
ROA(3y)10.42%
ROA(5y)11.58%
ROE(3y)13.51%
ROE(5y)14.96%
ROIC(3y)14.06%
ROIC(5y)14.71%
1.3 Margins
LANC has a Profit Margin of 9.01%. This is amongst the best in the industry. LANC outperforms 83.70% of its industry peers.
LANC's Profit Margin has declined in the last couple of years.
LANC's Operating Margin of 12.02% is fine compared to the rest of the industry. LANC outperforms 78.26% of its industry peers.
LANC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 23.70%, LANC perfoms like the industry average, outperforming 55.43% of the companies in the same industry.
In the last couple of years the Gross Margin of LANC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.02% | ||
| PM (TTM) | 9.01% | ||
| GM | 23.7% |
OM growth 3Y-3.58%
OM growth 5Y-4.93%
PM growth 3Y-4.46%
PM growth 5Y-5.98%
GM growth 3Y-4.31%
GM growth 5Y-1.53%
2. Health
2.1 Basic Checks
LANC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LANC has been increased compared to 1 year ago.
The number of shares outstanding for LANC has been increased compared to 5 years ago.
LANC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 14.29 indicates that LANC is not in any danger for bankruptcy at the moment.
LANC has a better Altman-Z score (14.29) than 94.57% of its industry peers.
There is no outstanding debt for LANC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.29 |
ROIC/WACC1.77
WACC9.07%
2.3 Liquidity
LANC has a Current Ratio of 2.37. This indicates that LANC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.37, LANC is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
LANC has a Quick Ratio of 1.34. This is a normal value and indicates that LANC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LANC (1.34) is better than 72.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.59% over the past year.
Measured over the past 5 years, LANC shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
LANC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.21%.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)27.59%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%44.66%
Revenue 1Y (TTM)-19.21%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%-2.89%
3.2 Future
LANC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.50% yearly.
LANC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
EPS Next Y9.63%
EPS Next 2Y11.96%
EPS Next 3Y8.5%
EPS Next 5YN/A
Revenue Next Year0.78%
Revenue Next 2Y1.55%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.09 indicates a quite expensive valuation of LANC.
LANC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.56, LANC is valued at the same level.
With a Price/Forward Earnings ratio of 23.97, LANC is valued on the expensive side.
LANC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.62. LANC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
LANC's Enterprise Value to EBITDA is on the same level as the industry average.
LANC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LANC is cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.18 | ||
| EV/EBITDA | 16.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LANC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LANC may justify a higher PE ratio.
PEG (NY)2.92
PEG (5Y)11.2
EPS Next 2Y11.96%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
LANC has a Yearly Dividend Yield of 2.21%.
LANC's Dividend Yield is a higher than the industry average which is at 5.17.
Compared to an average S&P500 Dividend Yield of 2.44, LANC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of LANC grows each year by 6.74%, which is quite nice.
LANC has paid a dividend for at least 10 years, which is a reliable track record.
LANC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
LANC pays out 60.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LANC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60%
EPS Next 2Y11.96%
EPS Next 3Y8.5%
172.77
+0.97 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change-0.41%
Ins OwnersN/A
Ins Owner Change0%
Market Cap4.76B
Revenue(TTM)1.89B
Net Income(TTM)170.00M
Analysts72.86
Price Target198.8 (15.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend3.53
Dividend Growth(5Y)6.74%
DP60%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.79%
Min EPS beat(2)-9.48%
Max EPS beat(2)-8.11%
EPS beat(4)0
Avg EPS beat(4)-8.45%
Min EPS beat(4)-12.02%
Max EPS beat(4)-4.21%
EPS beat(8)1
Avg EPS beat(8)-15.73%
EPS beat(12)3
Avg EPS beat(12)0.69%
EPS beat(16)4
Avg EPS beat(16)-1.15%
Revenue beat(2)1
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-7.25%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-7.25%
Max Revenue beat(4)0.78%
Revenue beat(8)1
Avg Revenue beat(8)-3.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.47%
Revenue beat(16)6
Avg Revenue beat(16)-1.2%
PT rev (1m)0%
PT rev (3m)-5.02%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 | ||
| P/S | 2.52 | ||
| P/FCF | 32.18 | ||
| P/OCF | 22.9 | ||
| P/B | 4.78 | ||
| P/tB | 6.15 | ||
| EV/EBITDA | 16.23 |
EPS(TTM)6.15
EY3.56%
EPS(NY)7.21
Fwd EY4.17%
FCF(TTM)5.37
FCFY3.11%
OCF(TTM)7.54
OCFY4.37%
SpS68.43
BVpS36.16
TBVpS28.07
PEG (NY)2.92
PEG (5Y)11.2
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.31% | ||
| ROE | 17.07% | ||
| ROCE | 20.78% | ||
| ROIC | 16.09% | ||
| ROICexc | 18.17% | ||
| ROICexgc | 23.61% | ||
| OM | 12.02% | ||
| PM (TTM) | 9.01% | ||
| GM | 23.7% | ||
| FCFM | 7.85% |
ROA(3y)10.42%
ROA(5y)11.58%
ROE(3y)13.51%
ROE(5y)14.96%
ROIC(3y)14.06%
ROIC(5y)14.71%
ROICexc(3y)15.84%
ROICexc(5y)17.52%
ROICexgc(3y)21.25%
ROICexgc(5y)25.82%
ROCE(3y)18.15%
ROCE(5y)19%
ROICexgc growth 3Y-6.07%
ROICexgc growth 5Y-11.92%
ROICexc growth 3Y-0.54%
ROICexc growth 5Y-5.28%
OM growth 3Y-3.58%
OM growth 5Y-4.93%
PM growth 3Y-4.46%
PM growth 5Y-5.98%
GM growth 3Y-4.31%
GM growth 5Y-1.53%
F-Score7
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 101.7% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.79% | ||
| Profit Quality | 87.06% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 14.29 |
F-Score7
WACC9.07%
ROIC/WACC1.77
Cap/Depr(3y)195.06%
Cap/Depr(5y)200.02%
Cap/Sales(3y)5.49%
Cap/Sales(5y)5.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.59%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%44.66%
EPS Next Y9.63%
EPS Next 2Y11.96%
EPS Next 3Y8.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.21%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%-2.89%
Revenue Next Year0.78%
Revenue Next 2Y1.55%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
EBIT growth 1Y-13.73%
EBIT growth 3Y4.58%
EBIT growth 5Y2.14%
EBIT Next Year31.23%
EBIT Next 3Y12.39%
EBIT Next 5YN/A
FCF growth 1Y21.91%
FCF growth 3Y28.71%
FCF growth 5Y7.75%
OCF growth 1Y-8.49%
OCF growth 3Y13.1%
OCF growth 5Y4.98%
LANCASTER COLONY CORP / LANC FAQ
What is the fundamental rating for LANC stock?
ChartMill assigns a fundamental rating of 6 / 10 to LANC.
What is the valuation status for LANC stock?
ChartMill assigns a valuation rating of 3 / 10 to LANCASTER COLONY CORP (LANC). This can be considered as Overvalued.
Can you provide the profitability details for LANCASTER COLONY CORP?
LANCASTER COLONY CORP (LANC) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LANC stock?
The Price/Earnings (PE) ratio for LANCASTER COLONY CORP (LANC) is 28.09 and the Price/Book (PB) ratio is 4.78.
Can you provide the dividend sustainability for LANC stock?
The dividend rating of LANCASTER COLONY CORP (LANC) is 6 / 10 and the dividend payout ratio is 60%.