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 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 valied quite expensively at the moment, while 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.
LANC had positive earnings in each of the past 5 years.
Each year in the past 5 years LANC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LANC (13.31%) is better than 96.70% of its industry peers.
LANC's Return On Equity of 17.07% is amongst the best of the industry. LANC outperforms 89.01% of its industry peers.
The Return On Invested Capital of LANC (16.09%) is better than 94.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LANC is significantly below the industry average of 28.40%.
The last Return On Invested Capital (16.09%) for LANC is above the 3 year average (14.06%), which is a sign of increasing profitability.
| 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 82.42% 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 78.02% of the companies in the same industry.
LANC's Operating Margin has declined in the last couple of years.
LANC has a Gross Margin (23.70%) which is in line with its industry peers.
LANC's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LANC is creating some value.
LANC has more shares outstanding than it did 1 year ago.
LANC has more shares outstanding than it did 5 years ago.
LANC has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 14.29, LANC belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
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/WACC1.59
WACC10.11%
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 Current ratio of 2.37. This is in the better half of the industry: LANC outperforms 71.43% 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.
The Quick ratio of LANC (1.34) is better than 72.53% of its industry peers.
| 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.
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%.
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
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.
LANC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
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
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.
Compared to an average S&P500 Price/Earnings ratio of 27.28, LANC is valued at the same level.
A Price/Forward Earnings ratio of 23.97 indicates a rather expensive valuation of LANC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LANC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, LANC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LANC is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, LANC is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
| 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.
The decent profitability rating of LANC 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%.
LANC's Dividend Yield is a higher than the industry average which is at 4.75.
LANC's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of LANC grows each year by 6.74%, which is quite nice.
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 Owners63.73%
Inst Owner Change1.36%
Ins Owners7.18%
Ins Owner Change-1.92%
Market Cap4.76B
Analysts72.86
Price Target198.8 (15.07%)
Short Float %3%
Short Ratio3.17
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)-0.29%
PT rev (3m)-5.02%
EPS NQ rev (1m)-4.18%
EPS NQ rev (3m)-8.48%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)-0.26%
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
WACC10.11%
ROIC/WACC1.59
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%