Lancaster Colony
Market Cap
US$4.9b
Last Updated
2021/02/23 23:23 UTC
Data Sources
Company Financials +
Executive Summary
Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Lancaster Colony's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LANC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: LANC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.2%
LANC
0.2%
US Food
-2.5%
US Market
1 Year Return
15.8%
LANC
10.2%
US Food
34.1%
US Market
Return vs Industry: LANC exceeded the US Food industry which returned 10.2% over the past year.
Return vs Market: LANC underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| LANC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | 0.2% | -2.5% |
| 30 Day | 2.0% | 2.6% | 0.1% |
| 90 Day | 3.9% | 3.3% | 4.5% |
| 1 Year | 17.8%15.8% | 12.9%10.2% | 37.1%34.1% |
| 3 Year | 54.8%47.0% | 16.2%6.6% | 58.0%47.9% |
| 5 Year | 90.3%74.6% | 19.1%3.0% | 131.9%106.2% |
Long-Term Price Volatility Vs. Market
How volatile is Lancaster Colony's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
How Should Investors React To Lancaster Colony's (NASDAQ:LANC) CEO Pay?1 month ago | Simply Wall St
Will Weakness in Lancaster Colony Corporation's (NASDAQ:LANC) Stock Prove Temporary Given Strong Fundamentals?1 month ago | Simply Wall St
Did Lancaster Colony's (NASDAQ:LANC) Share Price Deserve to Gain 51%?Valuation
Is Lancaster Colony undervalued compared to its fair value and its price relative to the market?
36.42x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LANC ($177.99) is trading above our estimate of fair value ($92.91)
Significantly Below Fair Value: LANC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LANC is poor value based on its PE Ratio (36.4x) compared to the US Food industry average (24.2x).
PE vs Market: LANC is poor value based on its PE Ratio (36.4x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: LANC is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: LANC is overvalued based on its PB Ratio (5.9x) compared to the US Food industry average (2.2x).
Next Steps
Future Growth
How is Lancaster Colony forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LANC's forecast earnings growth (10.1% per year) is above the savings rate (2%).
Earnings vs Market: LANC's earnings (10.1% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: LANC's earnings are forecast to grow, but not significantly.
Revenue vs Market: LANC's revenue (3.7% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: LANC's revenue (3.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LANC's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Lancaster Colony performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LANC has high quality earnings.
Growing Profit Margin: LANC's current net profit margins (9.8%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: LANC's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: LANC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LANC had negative earnings growth (-9%) over the past year, making it difficult to compare to the Food industry average (8.7%).
Return on Equity
High ROE: LANC's Return on Equity (16.3%) is considered low.
Next Steps
Financial Health
How is Lancaster Colony's financial position?
Financial Position Analysis
Short Term Liabilities: LANC's short term assets ($426.3M) exceed its short term liabilities ($140.6M).
Long Term Liabilities: LANC's short term assets ($426.3M) exceed its long term liabilities ($87.3M).
Debt to Equity History and Analysis
Debt Level: LANC is debt free.
Reducing Debt: LANC has not had any debt for past 5 years.
Debt Coverage: LANC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: LANC has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Lancaster Colony current dividend yield, its reliability and sustainability?
1.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LANC's dividend (1.69%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: LANC's dividend (1.69%) is low compared to the top 25% of dividend payers in the US market (3.75%).
Stability and Growth of Payments
Stable Dividend: LANC's dividends per share have been stable in the past 10 years.
Growing Dividend: LANC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.3%), LANC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Dave Ciesinski (54 yo)
3.58yrs
Tenure
US$3,942,509
Compensation
Mr. David A. Ciesinski, also known as Dave, has been Chief Executive Officer of Lancaster Colony Corporation since July 1, 2017. Mr. Ciesinski has been President of Lancaster Colony Corporation since April...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD3.94M) is below average for companies of similar size in the US market ($USD6.21M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 24.08yrs | US$716.95k | 6.1% $ 296.6m | |
| President | 3.58yrs | US$3.94m | 0.14% $ 6.8m | |
| VP, Assistant Secretary & CFO | 1.83yrs | US$1.39m | 0.0070% $ 341.8k | |
| Chief Supply Chain Officer of T. Marzetti Company | 4.08yrs | US$1.00m | 0.0086% $ 418.6k | |
| President of Retail Division at T. Marzetti Company | 2.33yrs | US$1.07m | 0.0056% $ 274.7k | |
| President of Foodservice Division of T. Marzetti Company | 1.42yrs | US$1.31m | 0.0033% $ 160.4k | |
| VP of Investor Relations & Treasurer | no data | no data | no data | |
| General Counsel | no data | no data | no data | |
| Transformation Program Officer | 1.83yrs | US$1.34m | no data | |
| Senior Corporate Counsel and Assistant Secretary | no data | no data | no data |
2.3yrs
Average Tenure
54.5yo
Average Age
Experienced Management: LANC's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 24.08yrs | US$716.95k | 6.1% $ 296.6m | |
| President | 3.58yrs | US$3.94m | 0.14% $ 6.8m | |
| Independent Director | 5.25yrs | US$205.10k | 0.014% $ 685.0k | |
| Lead Independent Director | 2.25yrs | US$206.35k | 0.068% $ 3.3m | |
| Independent Director | 30.08yrs | US$194.47k | 1.4% $ 68.1m | |
| Independent Director | 1.25yrs | US$151.23k | 0.0043% $ 210.0k | |
| Independent Director | 2.25yrs | US$182.60k | 0.0062% $ 302.9k | |
| Independent Director | 15.5yrs | US$193.85k | 0.035% $ 1.7m | |
| Independent Director | 6.25yrs | US$193.85k | 0.019% $ 925.2k |
5.3yrs
Average Tenure
61yo
Average Age
Experienced Board: LANC's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LANC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Lancaster Colony Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lancaster Colony Corporation
- Ticker: LANC
- Exchange: NasdaqGS
- Founded: 1961
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$4.862b
- Shares outstanding: 27.55m
- Website: https://www.lancastercolony.com
Number of Employees
Location
- Lancaster Colony Corporation
- 380 Polaris Parkway
- Suite 400
- Westerville
- Ohio
- 43082
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LANC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 1969 |
| LC1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
Biography
Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States. The company operates in two segments, Retail and Foodservice. It o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/23 23:23 |
| End of Day Share Price | 2021/02/23 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.