LANCASTER COLONY CORP (LANC) Stock Fundamental Analysis
NASDAQ:LANC - Nasdaq - US5138471033 - Common Stock - Currency: USD
Overall LANC gets a fundamental rating of 6 out of 10. We evaluated LANC against 91 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making LANC a very profitable company, without any liquidiy or solvency issues. 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.
LANC had a positive operating cash flow in the past year.
Each year in the past 5 years LANC has been profitable.
In the past 5 years LANC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.31%, LANC belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
The Return On Equity of LANC (17.07%) is better than 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 28.16%.
The 3 year average ROIC (14.06%) for LANC is below the current ROIC(16.09%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 9.01%, LANC belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
LANC's Profit Margin has declined in the last couple of years.
LANC has a Operating Margin of 12.02%. This is in the better half of the industry: LANC outperforms 78.26% of its industry peers.
LANC's Operating Margin has declined in the last couple of years.
The Gross Margin of LANC (23.70%) is comparable to the rest of the 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.
LANC has more shares outstanding than it did 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's Altman-Z score of 14.29 is amongst the best of the industry. LANC outperforms 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
A Current Ratio of 2.37 indicates that LANC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.37, LANC is doing good in the industry, outperforming 72.83% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that LANC should not have too much problems paying its short term obligations.
LANC has a Quick ratio of 1.34. This is in the better half of the industry: LANC outperforms 72.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
LANC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.59%, which is quite impressive.
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.
The Revenue for LANC has decreased by -19.21% in the past year. This is quite bad
LANC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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
The Earnings Per Share is expected to grow by 8.50% on average over the next years. This is quite good.
Based on estimates for the next years, LANC will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
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
Based on the Price/Earnings ratio of 28.09, the valuation of LANC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LANC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LANC to the average of the S&P500 Index (26.99), we can say LANC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.97, the valuation of LANC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LANC is on the same level as its industry peers.
LANC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LANC.
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.
LANC has a very decent profitability rating, which 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%. Purely for dividend investing, there may be better candidates out there.
LANC's Dividend Yield is a higher than the industry average which is at 4.73.
Compared to an average S&P500 Dividend Yield of 2.40, LANC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of LANC is nicely growing with an annual growth rate of 6.74%!
LANC has been paying a dividend for at least 10 years, so it has a reliable track record.
LANC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
60.00% of the earnings are spent on dividend by LANC. 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-0.51%
Ins OwnersN/A
Ins Owner Change-1.92%
Market Cap4.76B
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
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%
ROICexcg growth 3Y-6.07%
ROICexcg 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%