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Lancaster Colony Corporation (NASDAQ:LANC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of LANC, it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Lancaster Colony here.
Flawless balance sheet with solid track record and pays a dividend
Over the past year, LANC has grown its earnings by 14%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 21% return to shareholders, which is an notable feat for the company. LANC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that LANC has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at LANC’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$4.1b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For those seeking income streams from their portfolio, LANC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.7%.
For Lancaster Colony, I’ve compiled three relevant aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for LANC’s future growth? Take a look at our free research report of analyst consensus for LANC’s outlook.
- Valuation: What is LANC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LANC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LANC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.