172.77 USD
+0.97 (+0.56%)
172.87 USD
+0.1 (+0.06%)
Taking everything into account, LANC scores 6 out of 10 in our fundamental rating. LANC was compared to 87 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. While showing a medium growth rate, LANC is valued expensive at the moment. Finally LANC also has an excellent dividend rating. These ratings could make LANC a good candidate 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.
- 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
- LANC's Return On Assets of 13.31% is amongst the best of the industry. LANC outperforms 97.83% of its industry peers.
- Looking at the Return On Equity, with a value of 17.07%, LANC belongs to the top 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 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
- 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.
- In the last couple of years the Profit Margin of LANC has declined.
- LANC's Operating Margin of 12.02% is fine compared to the rest of the industry. LANC outperforms 78.26% of its industry peers.
- LANC's Operating Margin has declined in the last couple of years.
- 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.
- 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.
- 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
- An Altman-Z score of 14.29 indicates that LANC is not in any danger for bankruptcy at the moment.
- LANC's Altman-Z score of 14.29 is amongst the best of 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.
- 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.
- 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 8.50% on average over the next years. This is quite good.
- 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
- 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
- The Price/Earnings ratio is 28.09, which means the current valuation is very expensive for LANC.
- Compared to the rest of the industry, the Price/Earnings ratio of LANC is on the same level as its industry peers.
- LANC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.97, the valuation of LANC can be described as rather expensive.
- 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 24.26, LANC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
- LANC's Enterprise Value to EBITDA is on the same level as 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 2.28.
- Compared to an average S&P500 Dividend Yield of 1.82, LANC pays a bit more dividend than the S&P500 average.
| 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
- 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%
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%.