LANCASTER COLONY CORP (LANC) Stock Fundamental Analysis
NASDAQ:LANC - Nasdaq - US5138471033 - Common Stock - Currency: USD
LANC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 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
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.
LANC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.25%, LANC belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Equity of LANC (16.98%) is better than 84.44% of its industry peers.
With an excellent Return On Invested Capital value of 16.04%, LANC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LANC is significantly above the industry average of 8.92%.
The last Return On Invested Capital (16.04%) for LANC is above the 3 year average (14.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.25% | ||
| ROE | 16.98% | ||
| ROIC | 16.04% |
ROA(3y)10.43%
ROA(5y)11.59%
ROE(3y)13.51%
ROE(5y)14.97%
ROIC(3y)14.06%
ROIC(5y)14.72%
1.3 Margins
LANC has a better Profit Margin (8.97%) than 83.33% of its industry peers.
LANC's Profit Margin has declined in the last couple of years.
The Operating Margin of LANC (11.97%) is better than 78.89% of its industry peers.
In the last couple of years the Operating Margin of LANC has declined.
LANC has a Gross Margin (23.70%) which 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 | 11.97% | ||
| PM (TTM) | 8.97% | ||
| GM | 23.7% |
OM growth 3Y-3.54%
OM growth 5Y-4.91%
PM growth 3Y-4.42%
PM growth 5Y-5.96%
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.
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 13.60 indicates that LANC is not in any danger for bankruptcy at the moment.
LANC has a better Altman-Z score (13.60) than 97.78% 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 | 13.6 |
ROIC/WACC1.78
WACC9%
2.3 Liquidity
A Current Ratio of 2.36 indicates that LANC has no problem at all paying its short term obligations.
LANC has a better Current ratio (2.36) than 68.89% of its industry peers.
LANC has a Quick Ratio of 1.33. 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 (1.33) than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
LANC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.63%, 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)28.63%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%49.51%
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 9.96% yearly.
LANC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y15.61%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y2.96%
Revenue Next 3Y2.69%
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.
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
With a Price/Earnings ratio of 26.05, LANC can be considered very expensive at the moment.
LANC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.29, LANC is valued at the same level.
With a Price/Forward Earnings ratio of 21.94, LANC is valued on the expensive side.
LANC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LANC is cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. LANC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 21.94 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.06 | ||
| EV/EBITDA | 15.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LANC may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)10.38
EPS Next 2Y13.13%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, LANC has a reasonable but not impressive dividend return.
LANC's Dividend Yield is a higher than the industry average which is at 4.43.
LANC's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
On average, the dividend of LANC grows each year by 6.91%, 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)6.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
60.36% 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.
DP60.36%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
161.49
+0.04 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners62.98%
Inst Owner Change0.62%
Ins Owners7.23%
Ins Owner Change-1.5%
Market Cap4.45B
Analysts71.43
Price Target206.26 (27.72%)
Short Float %3.11%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend3.56
Dividend Growth(5Y)6.91%
DP60.36%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.24%
Min EPS beat(2)-9.48%
Max EPS beat(2)-4.99%
EPS beat(4)0
Avg EPS beat(4)-7.67%
Min EPS beat(4)-12.02%
Max EPS beat(4)-4.21%
EPS beat(8)1
Avg EPS beat(8)-15.34%
EPS beat(12)3
Avg EPS beat(12)0.95%
EPS beat(16)4
Avg EPS beat(16)-0.95%
Revenue beat(2)1
Avg Revenue beat(2)-3.19%
Min Revenue beat(2)-7.16%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-3.22%
Min Revenue beat(4)-7.16%
Max Revenue beat(4)0.78%
Revenue beat(8)1
Avg Revenue beat(8)-3.23%
Revenue beat(12)3
Avg Revenue beat(12)-1.46%
Revenue beat(16)6
Avg Revenue beat(16)-1.2%
PT rev (1m)-1.45%
PT rev (3m)2.34%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 21.94 | ||
| P/S | 2.36 | ||
| P/FCF | 30.06 | ||
| P/OCF | 21.47 | ||
| P/B | 4.47 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 15.19 |
EPS(TTM)6.2
EY3.84%
EPS(NY)7.36
Fwd EY4.56%
FCF(TTM)5.37
FCFY3.33%
OCF(TTM)7.52
OCFY4.66%
SpS68.43
BVpS36.14
TBVpS28.03
PEG (NY)1.67
PEG (5Y)10.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.25% | ||
| ROE | 16.98% | ||
| ROCE | 20.71% | ||
| ROIC | 16.04% | ||
| ROICexc | 18.11% | ||
| ROICexgc | 23.56% | ||
| OM | 11.97% | ||
| PM (TTM) | 8.97% | ||
| GM | 23.7% | ||
| FCFM | 7.85% |
ROA(3y)10.43%
ROA(5y)11.59%
ROE(3y)13.51%
ROE(5y)14.97%
ROIC(3y)14.06%
ROIC(5y)14.72%
ROICexc(3y)15.85%
ROICexc(5y)17.52%
ROICexgc(3y)21.27%
ROICexgc(5y)25.82%
ROCE(3y)18.16%
ROCE(5y)19.01%
ROICexcg growth 3Y-6.02%
ROICexcg growth 5Y-11.89%
ROICexc growth 3Y-0.51%
ROICexc growth 5Y-5.26%
OM growth 3Y-3.54%
OM growth 5Y-4.91%
PM growth 3Y-4.42%
PM growth 5Y-5.96%
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 | 100.38% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 87.55% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 13.6 |
F-Score7
WACC9%
ROIC/WACC1.78
Cap/Depr(3y)194.88%
Cap/Depr(5y)199.91%
Cap/Sales(3y)5.48%
Cap/Sales(5y)5.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.63%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%49.51%
EPS Next Y15.61%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.21%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%-2.89%
Revenue Next Year2.61%
Revenue Next 2Y2.96%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y-14.17%
EBIT growth 3Y4.62%
EBIT growth 5Y2.16%
EBIT Next Year33.8%
EBIT Next 3Y13.23%
EBIT Next 5YN/A
FCF growth 1Y22.02%
FCF growth 3Y28.7%
FCF growth 5Y7.75%
OCF growth 1Y-8.75%
OCF growth 3Y13.03%
OCF growth 5Y4.95%