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 89 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 quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years LANC had a positive operating cash flow.
1.2 Ratios
LANC has a better Return On Assets (12.62%) than 93.26% of its industry peers.
Looking at the Return On Equity, with a value of 15.97%, LANC belongs to the top of the industry, outperforming 84.27% of the companies in the same industry.
LANC has a Return On Invested Capital of 16.11%. This is amongst the best in the industry. LANC outperforms 93.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LANC is significantly above the industry average of 8.94%.
The last Return On Invested Capital (16.11%) for LANC is above the 3 year average (14.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 15.97% | ||
| ROIC | 16.11% |
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
With an excellent Profit Margin value of 8.23%, LANC belongs to the best of the industry, outperforming 80.90% of the companies in the same industry.
LANC's Profit Margin has declined in the last couple of years.
LANC has a Operating Margin of 11.75%. This is in the better half of the industry: LANC outperforms 78.65% of its industry peers.
In the last couple of years the Operating Margin of LANC has declined.
LANC has a Gross Margin of 23.46%. This is comparable to the rest of the industry: LANC outperforms 57.30% of its industry peers.
LANC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | 8.23% | ||
| GM | 23.46% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LANC is creating some value.
The number of shares outstanding for LANC remains at a similar level compared to 1 year ago.
The number of shares outstanding for LANC remains at a similar level compared to 5 years ago.
LANC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 16.40 indicates that LANC is not in any danger for bankruptcy at the moment.
LANC's Altman-Z score of 16.40 is amongst the best of the industry. LANC outperforms 100.00% 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 | 16.4 |
ROIC/WACC1.78
WACC9.05%
2.3 Liquidity
LANC has a Current Ratio of 2.88. This indicates that LANC is financially healthy and has no problem in meeting its short term obligations.
LANC's Current ratio of 2.88 is amongst the best of the industry. LANC outperforms 80.90% of its industry peers.
A Quick Ratio of 1.88 indicates that LANC should not have too much problems paying its short term obligations.
LANC's Quick ratio of 1.88 is amongst the best of the industry. LANC outperforms 83.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
LANC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.58%, 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.
The Revenue for LANC has decreased by -18.40% in the past year. This is quite bad
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)21.58%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%-4.81%
Revenue 1Y (TTM)-18.4%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%4.81%
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 9.96% yearly.
LANC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y15.61%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y2.96%
Revenue Next 3Y2.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.66, 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 28.64, LANC is valued at the same level.
The Price/Forward Earnings ratio is 26.02, which means the current valuation is very expensive for LANC.
LANC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, LANC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.66 | ||
| Fwd PE | 26.02 |
4.2 Price Multiples
LANC's Enterprise Value to EBITDA ratio is in line with the industry average.
LANC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 18.03 |
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)2.16
PEG (5Y)13.42
EPS Next 2Y13.13%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
LANC has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.35, LANC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.52, LANC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
64.43% 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.
DP64.43%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
191.5
+0.39 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners62.98%
Inst Owner Change0.33%
Ins Owners7.23%
Ins Owner Change-1.5%
Market Cap5.28B
Analysts72.31
Price Target209.3 (9.3%)
Short Float %2.27%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend3.56
Dividend Growth(5Y)6.91%
DP64.43%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.84%
Min EPS beat(2)-9.48%
Max EPS beat(2)-4.21%
EPS beat(4)0
Avg EPS beat(4)-13.18%
Min EPS beat(4)-27%
Max EPS beat(4)-4.21%
EPS beat(8)1
Avg EPS beat(8)-15.45%
EPS beat(12)3
Avg EPS beat(12)0.25%
EPS beat(16)5
Avg EPS beat(16)-0.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.14%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)4
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)-0.56%
PT rev (1m)0%
PT rev (3m)3.85%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.66 | ||
| Fwd PE | 26.02 | ||
| P/S | 2.78 | ||
| P/FCF | 29.59 | ||
| P/OCF | 22.23 | ||
| P/B | 5.39 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 18.03 |
EPS(TTM)5.69
EY2.97%
EPS(NY)7.36
Fwd EY3.84%
FCF(TTM)6.47
FCFY3.38%
OCF(TTM)8.62
OCFY4.5%
SpS68.92
BVpS35.54
TBVpS27.98
PEG (NY)2.16
PEG (5Y)13.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 15.97% | ||
| ROCE | 20.81% | ||
| ROIC | 16.11% | ||
| ROICexc | 19.88% | ||
| ROICexgc | 26.14% | ||
| OM | 11.75% | ||
| PM (TTM) | 8.23% | ||
| GM | 23.46% | ||
| FCFM | 9.39% |
ROA(3y)10.43%
ROA(5y)11.59%
ROE(3y)13.51%
ROE(5y)14.97%
ROIC(3y)14.06%
ROIC(5y)14.72%
ROICexc(3y)15.85%
ROICexc(5y)17.52%
ROICexgc(3y)21.27%
ROICexgc(5y)25.82%
ROCE(3y)18.16%
ROCE(5y)19.01%
ROICexcg growth 3Y-6.02%
ROICexcg growth 5Y-11.89%
ROICexc growth 3Y-0.51%
ROICexc growth 5Y-5.26%
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%
F-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 102.29% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.53% | ||
| Profit Quality | 114.04% | ||
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 16.4 |
F-Score7
WACC9.05%
ROIC/WACC1.78
Cap/Depr(3y)194.88%
Cap/Depr(5y)199.91%
Cap/Sales(3y)5.48%
Cap/Sales(5y)5.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.58%
EPS 3Y-1.84%
EPS 5Y2.51%
EPS Q2Q%-4.81%
EPS Next Y15.61%
EPS Next 2Y13.13%
EPS Next 3Y9.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.4%
Revenue growth 3Y8.46%
Revenue growth 5Y7.43%
Sales Q2Q%4.81%
Revenue Next Year2.61%
Revenue Next 2Y2.96%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y-8.97%
EBIT growth 3Y4.62%
EBIT growth 5Y2.16%
EBIT Next Year33.8%
EBIT Next 3Y13.23%
EBIT Next 5YN/A
FCF growth 1Y127.6%
FCF growth 3Y28.7%
FCF growth 5Y7.75%
OCF growth 1Y18.65%
OCF growth 3Y13.03%
OCF growth 5Y4.95%