| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
LANC Overview
Lancaster Colony Corporation manufactures and markets food products for the retail and foodservice markets in the United States.
Rewards
Risk Analysis
No risks detected for LANC from our risk checks.
Lancaster Colony Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$172.55 |
| 52 Week High | US$162.53 |
| 52 Week Low | US$201.31 |
| Beta | 0.19 |
| 1 Month Change | 2.01% |
| 3 Month Change | -13.76% |
| 1 Year Change | -1.18% |
| 3 Year Change | 11.86% |
| 5 Year Change | 28.63% |
| Change since IPO | 2,660.79% |
Recent News & Updates
An Intrinsic Calculation For Lancaster Colony Corporation (NASDAQ:LANC) Suggests It's 20% Undervalued
How far off is Lancaster Colony Corporation ( NASDAQ:LANC ) from its intrinsic value? Using the most recent financial...
Lancaster Colony: Excellent Dividend Growth Stock With Nuances
Established in 1961, Ohio-based LANC is a mid-cap specialty food manufacturer with a market value of around $4.95 billion. With 58 years of consistent DPS increases, LANC is one of the U.S. dividend kings. FY21 revenues rose by almost 10%, but gross profit was up by only 8% as inflation percolated into the cost of sales. In FY19-21, LANC's dividend coverage and FCF conversion weakened due to higher capex. Valuation is lofty. So, while appreciating the company's tremendously long dividend growth history, I give it a neutral rating.
Here's What's Concerning About Lancaster Colony's (NASDAQ:LANC) Returns On Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...
Calculating The Fair Value Of Lancaster Colony Corporation (NASDAQ:LANC)
Does the June share price for Lancaster Colony Corporation ( NASDAQ:LANC ) reflect what it's really worth? Today, we...
Shareholder Returns
| LANC | US Food | US Market | |
|---|---|---|---|
| 7D | -0.5% | 0.8% | 2.0% |
| 1Y | -1.2% | 5.9% | 27.6% |
Return vs Industry: LANC underperformed the US Food industry which returned 5.9% over the past year.
Return vs Market: LANC underperformed the US Market which returned 27.6% over the past year.
Price Volatility
| LANC volatility | |
|---|---|
| LANC Beta | 0.19 |
| Industry Beta | 0.71 |
| Market Beta | 1 |
Stable Share Price: LANC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: LANC's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1961 | 3,200 | Dave Ciesinski | https://www.lancastercolony.com |
Lancaster Colony Corporation manufactures and markets food products for the retail and foodservice markets in the United States. The company operates in two segments, Retail and Foodservice. It offers frozen garlic bread under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert’s brand; salad dressings under the Marzetti, Cardini’s, and Girard’s; flatbread wraps and pizza crusts under the Flatout brand; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti; frozen pasta under the Marzetti Frozen Pasta brand; and vegetable and fruit dips under the Marzetti brand.
Lancaster Colony Fundamentals Summary
| LANC fundamental statistics | |
|---|---|
| Market Cap | US$4.79b |
| Earnings (TTM) | US$142.05m |
| Revenue (TTM) | US$1.47b |
33.4x
P/E Ratio3.2x
P/S RatioIs LANC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LANC income statement (TTM) | |
|---|---|
| Revenue | US$1.47b |
| Cost of Revenue | US$1.08b |
| Gross Profit | US$386.72m |
| Expenses | US$244.68m |
| Earnings | US$142.05m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.16 |
| Gross Margin | 26.36% |
| Net Profit Margin | 9.68% |
| Debt/Equity Ratio | 0% |
How did LANC perform over the long term?
See historical performance and comparisonDividends
1.7%
Current Dividend Yield57%
Payout RatioValuation
Is Lancaster Colony undervalued compared to its fair value and its price relative to the market?
25.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LANC ($172.55) is trading below our estimate of fair value ($232.18)
Significantly Below Fair Value: LANC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LANC is poor value based on its PE Ratio (33.4x) compared to the US Food industry average (23x).
PE vs Market: LANC is poor value based on its PE Ratio (33.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: LANC is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: LANC is overvalued based on its PB Ratio (5.6x) compared to the US Food industry average (2.3x).
Future Growth
How is Lancaster Colony forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LANC's forecast earnings growth (11.6% per year) is above the savings rate (2%).
Earnings vs Market: LANC's earnings (11.6% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: LANC's earnings are forecast to grow, but not significantly.
Revenue vs Market: LANC's revenue (6.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: LANC's revenue (6.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LANC's Return on Equity is forecast to be low in 3 years time (19.7%).
Past Performance
How has Lancaster Colony performed over the past 5 years?
3.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LANC has high quality earnings.
Growing Profit Margin: LANC's current net profit margins (9.7%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: LANC's earnings have grown by 3.6% per year over the past 5 years.
Accelerating Growth: LANC's earnings growth over the past year (3.9%) exceeds its 5-year average (3.6% per year).
Earnings vs Industry: LANC earnings growth over the past year (3.9%) underperformed the Food industry 28%.
Return on Equity
High ROE: LANC's Return on Equity (16.9%) is considered low.
Financial Health
How is Lancaster Colony's financial position?
Financial Position Analysis
Short Term Liabilities: LANC's short term assets ($423.5M) exceed its short term liabilities ($173.9M).
Long Term Liabilities: LANC's short term assets ($423.5M) exceed its long term liabilities ($84.2M).
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
Dividend
What is Lancaster Colony current dividend yield, its reliability and sustainability?
1.74%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LANC's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: LANC's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 (57.1%), LANC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LANC's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Dave Ciesinski (55 yo)
4.25yrs
Tenure
US$4,340,852
Compensation
Mr. David A. Ciesinski, also known as Dave, serves as Independent Director at Essential Utilities, Inc. since July 2, 2021. Mr. Ciesinski has been Chief Executive Officer of Lancaster Colony Corporation si...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD4.34M) is about average for companies of similar size in the US market ($USD5.19M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: LANC's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: LANC's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$4.785b
- Shares outstanding: 27.53m
- Website: https://www.lancastercolony.com
Number of Employees
Location
- Lancaster Colony Corporation
- 380 Polaris Parkway
- Suite 400
- Westerville
- Ohio
- 43082
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/15 23:19 |
| End of Day Share Price | 2021/10/15 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.