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%)
Overall LANC gets a fundamental rating of 6 out of 10. We evaluated LANC against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LANC had positive earnings in the past year.
In the past year LANC had a positive cash flow from operations.
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
With an excellent Return On Assets value of 13.31%, LANC belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
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 28.34%.
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
LANC has a better Profit Margin (9.01%) than 83.70% of its industry peers.
In the last couple of years the Profit Margin of LANC has declined.
The Operating Margin of LANC (12.02%) is better than 78.26% of its industry peers.
In the last couple of years the Operating Margin of LANC has declined.
LANC has a Gross Margin of 23.70%. This is comparable to the rest of the industry: LANC outperforms 55.43% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LANC is still creating some value.
LANC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LANC has more shares outstanding
Compared to 1 year ago, LANC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.29 indicates that LANC is not in any danger for bankruptcy at the moment.
The Altman-Z score of LANC (14.29) is better than 94.57% 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 | 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.
The Current ratio of LANC (2.37) is better than 72.83% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.34, LANC is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
| 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.
LANC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
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
Based on estimates for the next years, LANC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.50% on average per year.
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.
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
With a Price/Earnings ratio of 28.09, LANC can be considered very expensive at the moment.
LANC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.91. LANC is around the same levels.
With a Price/Forward Earnings ratio of 23.97, LANC is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as LANC.
LANC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, LANC is valued a bit 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
With a Yearly Dividend Yield of 2.21%, LANC has a reasonable but not impressive dividend return.
LANC's Dividend Yield is a higher than the industry average which is at 5.10.
LANC's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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 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.
LANC's earnings are growing more than its dividend. This makes the dividend growth 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 Change0.15%
Ins OwnersN/A
Ins Owner Change0.46%
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%.