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. LANC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
LANC had a positive operating cash flow in the past year.
Each year in the past 5 years LANC has been profitable.
Each year in the past 5 years LANC had a positive operating cash flow.
1.2 Ratios
LANC has a better Return On Assets (13.31%) than 97.83% of its industry peers.
The Return On Equity of LANC (17.07%) is better than 88.04% of its industry peers.
LANC has a Return On Invested Capital of 16.09%. This is amongst the best in the industry. LANC outperforms 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 28.11%.
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.
With a decent Operating Margin value of 12.02%, LANC is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Operating Margin of LANC has declined.
LANC's Gross Margin of 23.70% is in line compared to the rest of the industry. LANC outperforms 55.43% of 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
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.
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.
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.
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.
Looking at the Current ratio, with a value of 2.37, LANC is in the better half of 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.
The Quick ratio of LANC (1.34) is better than 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.
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%.
Measured over the past years, LANC shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
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
LANC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.50% yearly.
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
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 27.30, LANC is valued at the same level.
LANC is valuated rather expensively with a Price/Forward Earnings ratio of 23.97.
LANC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. LANC is around the same levels.
| 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.
Based on the Price/Free Cash Flow ratio, LANC is valued a bit cheaper than the industry average as 60.87% 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
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 4.71.
Compared to an average S&P500 Dividend Yield of 2.35, LANC has a dividend comparable with the average S&P500 company.
| 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 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
60.00% of the earnings are spent on dividend by LANC. 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 Change-0.02%
Ins OwnersN/A
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%
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%