172.77 USD
+0.97 (+0.56%)
At close: Jun 30, 2025
172.87 USD
+0.1 (+0.06%)
After Hours: 6/30/2025, 8:26:44 PM
We assign a fundamental rating of 6 out of 10 to LANC. LANC was compared to 87 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. Finally LANC also has an excellent dividend rating. These ratings would make LANC suitable for dividend investing!
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
- 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.
- With an excellent Return On Equity value of 17.07%, LANC belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 16.09%, LANC belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LANC is significantly below the industry average of 27.79%.
- 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
- The Profit Margin of LANC (9.01%) is better than 83.70% of its industry peers.
- LANC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 12.02%, LANC is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LANC is still creating some value.
- Compared to 1 year ago, LANC has more shares outstanding
- The number of shares outstanding for LANC has been increased compared to 5 years ago.
- The debt/assets ratio for LANC has been reduced compared to a year ago.
2.2 Solvency
- LANC has an Altman-Z score of 14.29. This indicates that LANC is financially healthy and has little risk of bankruptcy at the moment.
- LANC has a Altman-Z score of 14.29. This is amongst the best in 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
- 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.
- LANC has a better Current ratio (2.37) than 72.83% of its industry peers.
- A Quick Ratio of 1.34 indicates that LANC should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.34, LANC is doing good in 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
- The Earnings Per Share has grown by an impressive 27.59% over the past year.
- The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
- Looking at the last year, LANC shows a very negative growth in Revenue. The Revenue has decreased by -19.21% in the last year.
- 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.
- The Revenue is expected to grow by 2.03% on average over the next years.
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
- 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
- The Price/Earnings ratio is 28.09, which means the current valuation is very expensive for LANC.
- LANC's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.32. LANC is around the same levels.
- With a Price/Forward Earnings ratio of 23.97, LANC is valued on the expensive side.
- LANC's Price/Forward Earnings ratio is in line with the industry average.
- LANC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 |
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 indicates a somewhat cheap valuation: LANC is cheaper than 60.87% of the companies listed 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 2.30.
- LANC's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| 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 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%
LANCASTER COLONY CORP / LANC FAQ
Can you provide the ChartMill fundamental rating for LANCASTER COLONY CORP?
ChartMill assigns a fundamental rating of 6 / 10 to LANC.
What is the valuation status of LANCASTER COLONY CORP (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.
What is the earnings growth outlook for LANCASTER COLONY CORP?
The Earnings per Share (EPS) of LANCASTER COLONY CORP (LANC) is expected to grow by 9.63% in the next year.
How sustainable is the dividend of LANCASTER COLONY CORP (LANC) stock?
The dividend rating of LANCASTER COLONY CORP (LANC) is 6 / 10 and the dividend payout ratio is 60%.