NasdaqGS:LANC

Stock Analysis Report

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Executive Summary

Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States.

Rewards

Earnings are forecast to grow 5.85% per year

Pays a reliable dividend of 1.82%

Risk Analysis

No risks detected for LANC from our risk checks.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

LANC

4.0%

US Food

3.0%

US Market


1 Year Return

5.2%

LANC

5.7%

US Food

9.9%

US Market

Return vs Industry: LANC matched the US Food industry which returned 5.7% over the past year.

Return vs Market: LANC underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

LANCIndustryMarket
7 Day7.5%4.0%3.0%
30 Day13.6%4.1%8.2%
90 Day3.1%2.8%0.4%
1 Year7.1%5.2%8.4%5.7%12.4%9.9%
3 Year27.2%20.7%-4.8%-12.8%31.0%22.3%
5 Year97.3%73.9%31.3%15.7%58.1%40.3%

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

Valuation

Is Lancaster Colony undervalued compared to its fair value and its price relative to the market?

30.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LANC ($153.46) is trading above our estimate of fair value ($61.03)

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 (30.2x) compared to the Food industry average (21.4x).

PE vs Market: LANC is poor value based on its PE Ratio (30.2x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: LANC is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: LANC is overvalued based on its PB Ratio (5.5x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Lancaster Colony forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LANC's forecast earnings growth (5.8% per year) is above the savings rate (2.2%).

Earnings vs Market: LANC's earnings (5.8% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: LANC's earnings are forecast to grow, but not significantly.

Revenue vs Market: LANC's revenue (2.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: LANC's revenue (2.9% 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?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LANC has high quality earnings.

Growing Profit Margin: LANC's current net profit margins (10.4%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: LANC's earnings have grown by 7.9% 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 (-6.9%) over the past year, making it difficult to compare to the Food industry average (-1%).


Return on Equity

High ROE: LANC's Return on Equity (18.1%) 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 ($382.0M) exceed its short term liabilities ($137.1M).

Long Term Liabilities: LANC's short term assets ($382.0M) exceed its long term liabilities ($82.6M).


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's current dividend yield, its reliability and sustainability?

1.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LANC's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: LANC's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.54%).


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 (53.2%), 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?

1.7yrs

Average management tenure


CEO

Dave Ciesinski (53yo)

2.92yrs

Tenure

US$3,550,532

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 ($USD3.55M) is below average for companies of similar size in the US market ($USD5.91M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Gerlach
Executive Chairman of the Board23.42yrsUS$720.05k26.71% $1.1b
David Ciesinski
President2.92yrsUS$3.55m0.093% $3.9m
Thomas Pigott
VP, Assistant Secretary & CFO1.17yrsUS$749.22k0.0070% $297.3k
Douglas Fell
Transformation Program Officer1.17yrsUS$1.34m0.051% $2.1m
David Nagle
Chief Supply Chain Officer of T. Marzetti Company3.42yrsUS$916.86k0.0086% $364.0k
Carl Stealey
President of Retail Division at T. Marzetti Company1.67yrsUS$995.92k0.0057% $239.0k
Dale Ganobsik
VP of Investor Relations & Treasurerno datano datano data
Matthew Shurte
General Counselno datano datano data
Kristin Bird
President of Foodservice Division of T. Marzetti Company1.42yrsno data0.0033% $139.8k
David Segal
Senior Corporate Counsel and Assistant Secretaryno datano datano data

1.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LANC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Gerlach
Executive Chairman of the Board23.42yrsUS$720.05k26.71% $1.1b
David Ciesinski
President2.92yrsUS$3.55m0.093% $3.9m
William Carter
Independent Director4.58yrsUS$203.67k0.012% $507.1k
Alan Harris
Lead Independent Director1.58yrsUS$203.67k0.066% $2.8m
Robert Fox
Independent Director29.42yrsUS$189.29k1.4% $59.3m
Barbara Brasier
Independent Director0.58yrno data0.0022% $93.7k
Michael Keown
Independent Director1.58yrsUS$151.19k0.0041% $174.4k
Neeli Bendapudi
Independent Director14.83yrsUS$198.04k0.033% $1.4m
Kenneth Cooke
Independent Director10.42yrsUS$213.04k0.039% $1.6m
Robert Ostryniec
Independent Director5.58yrsUS$196.17k0.017% $715.7k

5.1yrs

Average Tenure

62yo

Average Age

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.


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$4.223b
  • Shares outstanding: 27.52m
  • Website: https://www.lancastercolony.com

Number of Employees


Location

  • Lancaster Colony Corporation
  • 380 Polaris Parkway
  • Suite 400
  • Westerville
  • Ohio
  • 43082
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LANCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
LC1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 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 offers frozen garlic breads under the New York BRAND Bakery; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert’s; frozen mini stuffed bagels under the Bantam Bagels; salad dressings under the Marzetti, Simply Dressed, Simply 60, Cardini’s, and Girard’s; and vegetable and fruit dips under the Marzetti brand names. The company also provides flatbread wraps and pizza crusts under the Flatout; sprouted grain bakery products under the Angelic Bakehouse; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti; and frozen pasta under the Marzetti Frozen Pasta brand names. In addition, it manufactures and sells other products to brand license agreements, including Olive Garden’s dressings and Buffalo Wild Wings sauces. The company sells its products through sales personnel, food brokers, and distributors to retailers and restaurants. Lancaster Colony Corporation was founded in 1961 and is based in Westerville, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 10:02
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.