LANCASTER COLONY CORP (LANC)
US5138471033 - Common Stock
Overall LANC gets a fundamental rating of 6 out of 10. We evaluated LANC against 92 industry peers in the Food Products industry. LANC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LANC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LANC was profitable.
In the past year LANC had a positive cash flow from operations.
In the past 5 years LANC has always been profitable.
LANC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LANC's Return On Assets of 11.21% is amongst the best of the industry. LANC outperforms 92.31% of its industry peers.
The Return On Equity of LANC (14.18%) is better than 80.22% of its industry peers.
LANC's Return On Invested Capital of 15.05% is amongst the best of the industry. LANC outperforms 95.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LANC is significantly above the industry average of 7.56%.
The 3 year average ROIC (14.09%) for LANC is below the current ROIC(15.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 14.18% | ||
| ROIC | 15.05% |
ROA(3y)10.36%
ROA(5y)12.29%
ROE(3y)13.43%
ROE(5y)15.69%
ROIC(3y)14.09%
ROIC(5y)15.52%
1.3 Margins
With a decent Profit Margin value of 6.90%, LANC is doing good in the industry, outperforming 73.63% of the companies in the same industry.
LANC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.09%, LANC is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
In the last couple of years the Operating Margin of LANC has declined.
LANC has a Gross Margin of 22.36%. This is comparable to the rest of the industry: LANC outperforms 58.24% of its industry peers.
LANC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.09% | ||
| PM (TTM) | 6.9% | ||
| GM | 22.36% |
OM growth 3Y-11.65%
OM growth 5Y-8.21%
PM growth 3Y-15.91%
PM growth 5Y-11.21%
GM growth 3Y-7.37%
GM growth 5Y-2.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LANC is creating some value.
The number of shares outstanding for LANC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LANC has about the same amount of shares outstanding.
Compared to 1 year ago, LANC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 17.27 indicates that LANC is not in any danger for bankruptcy at the moment.
LANC's Altman-Z score of 17.27 is amongst the best of the industry. LANC outperforms 100.00% of its industry peers.
LANC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.27 |
ROIC/WACC1.63
WACC9.24%
2.3 Liquidity
LANC has a Current Ratio of 2.48. This indicates that LANC is financially healthy and has no problem in meeting its short term obligations.
LANC has a better Current ratio (2.48) than 80.22% of its industry peers.
LANC has a Quick Ratio of 1.51. This is a normal value and indicates that LANC is financially healthy and should not expect problems in meeting its short term obligations.
LANC has a better Quick ratio (1.51) than 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
LANC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
LANC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.50% yearly.
LANC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.16%.
Measured over the past years, LANC shows a quite strong growth in Revenue. The Revenue has been growing by 8.31% on average per year.
EPS 1Y (TTM)-20%
EPS 3Y-7.25%
EPS 5Y0.5%
EPS growth Q2Q12.65%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y10.95%
Revenue growth 5Y8.31%
Revenue growth Q2Q1.78%
3.2 Future
Based on estimates for the next years, LANC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.52% on average per year.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y42.53%
EPS Next 2Y25.35%
EPS Next 3Y16.52%
EPS Next 5YN/A
Revenue Next Year1.8%
Revenue Next 2Y2.54%
Revenue Next 3Y2.85%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.21, the valuation of LANC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LANC.
LANC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 26.61, the valuation of LANC can be described as expensive.
LANC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LANC to the average of the S&P500 Index (21.67), we can say LANC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.21 | ||
| Fwd PE | 26.61 |
4.2 Price Multiples
LANC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LANC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.16 | ||
| EV/EBITDA | 20.73 |
4.3 Compensation for Growth
LANC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LANC may justify a higher PE ratio.
A more expensive valuation may be justified as LANC's earnings are expected to grow with 16.52% in the coming years.
PEG (NY)0.95
PEG (5Y)81.03
EPS Next 2Y25.35%
EPS Next 3Y16.52%
5. Dividend
5.1 Amount
LANC has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.58, LANC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, LANC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of LANC is nicely growing with an annual growth rate of 7.42%!
LANC has been paying a dividend for at least 10 years, so it has a reliable track record.
LANC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.42%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
LANC pays out 73.86% of its income as dividend. This is not a sustainable payout ratio.
LANC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.86%
EPS Next 2Y25.35%
EPS Next 3Y16.52%
LANCASTER COLONY CORP
NASDAQ:LANC (4/25/2024, 10:45:02 AM)
188.17
-0.63 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.21 | ||
| Fwd PE | 26.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.95
PEG (5Y)81.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 14.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.09% | ||
| PM (TTM) | 6.9% | ||
| GM | 22.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20%
EPS 3Y-7.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y42.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.16%
Revenue growth 3Y10.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y