LANCASTER COLONY CORP (LANC)
US5138471033 - Common Stock
LANC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 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. While showing a medium growth rate, LANC is valued expensive at the moment. Finally LANC also has an excellent dividend rating. With these ratings, LANC could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
LANC had positive earnings in the past year.
LANC had a positive operating cash flow in the past year.
In the past 5 years LANC has always been profitable.
LANC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.67%, LANC belongs to the best of the industry, outperforming 96.63% of the companies in the same industry.
LANC has a better Return On Equity (21.46%) than 89.89% of its industry peers.
The Return On Invested Capital of LANC (20.05%) is better than 96.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LANC is significantly above the industry average of 8.93%.
The 3 year average ROIC (14.06%) for LANC is below the current ROIC(20.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.67% | ||
| ROE | 21.46% | ||
| ROIC | 20.05% |
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
The Profit Margin of LANC (8.67%) is better than 78.65% of its industry peers.
LANC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.55%, LANC is doing good in the industry, outperforming 78.65% of the companies in the same industry.
In the last couple of years the Operating Margin of LANC has declined.
LANC has a Gross Margin of 23.23%. This is comparable to the rest of the industry: LANC outperforms 56.18% of its industry peers.
In the last couple of years the Gross Margin of LANC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.55% | ||
| PM (TTM) | 8.67% | ||
| GM | 23.23% |
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 well above the Cost of Capital (WACC), so LANC is creating 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.
The debt/assets ratio for LANC has been reduced compared to a year ago.
2.2 Solvency
LANC has an Altman-Z score of 15.71. This indicates that LANC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.71, LANC belongs to the best of the industry, outperforming 98.88% of the companies in the same industry.
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 | 15.71 |
ROIC/WACC2.22
WACC9.03%
2.3 Liquidity
LANC has a Current Ratio of 2.61. 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 2.61, LANC is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
LANC has a Quick Ratio of 1.50. 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 1.50, LANC is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.31% over the past year.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
LANC shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.81%.
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)29.31%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%1.89%
Revenue 1Y (TTM)25.81%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%1.08%
3.2 Future
The Earnings Per Share is expected to grow by 10.47% 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 2.05% yearly.
EPS Next Y19%
EPS Next 2Y12.23%
EPS Next 3Y10.47%
EPS Next 5YN/A
Revenue Next Year1.77%
Revenue Next 2Y2.42%
Revenue Next 3Y2.05%
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 31.06, LANC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LANC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.65. LANC is around the same levels.
With a Price/Forward Earnings ratio of 24.79, LANC is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as LANC.
When comparing the Price/Forward Earnings ratio of LANC to the average of the S&P500 Index (23.56), we can say LANC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 24.79 |
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 | 29.29 | ||
| EV/EBITDA | 14.73 |
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)1.63
PEG (5Y)12.38
EPS Next 2Y12.23%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, LANC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.80, LANC pays a bit more dividend than its industry peers.
LANC's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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 Years33
Div Non Decr Years33
5.3 Sustainability
49.02% of the earnings are spent on dividend by LANC. This is a bit on the high side, but may be sustainable.
The dividend of LANC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.02%
EPS Next 2Y12.23%
EPS Next 3Y10.47%
LANCASTER COLONY CORP
NASDAQ:LANC (11/20/2024, 8:00:02 PM)
After market: 179.5 0 (0%)179.5
-0.12 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 24.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.63
PEG (5Y)12.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.67% | ||
| ROE | 21.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.55% | ||
| PM (TTM) | 8.67% | ||
| GM | 23.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.31%
EPS 3Y-1.84%
EPS 5Y
EPS Q2Q%
EPS Next Y19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.81%
Revenue growth 3Y8.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y