NasdaqGS:LANC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

2.3%

LANC

-0.4%

US Food

1.0%

US Market


1 Year Return

-5.0%

LANC

3.5%

US Food

6.7%

US Market

Return vs Industry: LANC underperformed the US Food industry which returned 3.5% over the past year.

Return vs Market: LANC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

LANCIndustryMarket
7 Day2.3%-0.4%1.0%
30 Day-4.5%-1.6%-1.8%
90 Day-5.8%0.9%-1.8%
1 Year-3.5%-5.0%6.5%3.5%9.1%6.7%
3 Year9.8%4.3%-1.4%-10.1%46.0%36.6%
5 Year85.1%62.2%47.5%29.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

25.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: LANC ($139.39) is trading above our estimate of fair value ($110.53)

Significantly Undervalued: LANC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: LANC is good value based on its PE Ratio (25.4x) compared to the Food industry average (25.4x).

PE vs Market: LANC is poor value based on its PE Ratio (25.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: LANC is poor value based on its PEG Ratio (7.9x)


Price Based on Value of Assets

PB vs Industry: LANC is overvalued based on its PB Ratio (5.3x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: LANC's forecast earnings growth (3.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LANC's earnings (3.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: LANC's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LANC's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: LANC's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

How has Lancaster Colony performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LANC's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: LANC's earnings growth over the past year (11.3%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: LANC earnings growth over the past year (11.3%) exceeded the Food industry -22.7%.


Return on Equity

High ROE: LANC's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: LANC has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: LANC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lancaster Colony's financial position?


Financial Position Analysis

Short Term Liabilities: LANC's short term assets ($368.6M) exceeds its short term liabilities ($119.7M)

Long Term Liabilities: LANC's short term assets ($368.6M) exceeds its long term liabilities ($58.8M)


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

Inventory Level: LANC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LANC's debt is covered by short term assets.


Next Steps

Dividend

What is Lancaster Colony's current dividend yield, its reliability and sustainability?

1.87%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years1.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: LANC's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: LANC's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonably low payout ratio (46.6%), LANC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LANC's dividends in 3 years are forecast to be well covered by earnings (47.2% payout ratio).


Next Steps

Management

What is the CEO of Lancaster Colony's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Dave Ciesinski (53yo)

2.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LANC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LANC's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$131,47909 Nov 18
Timothy Tate
EntityIndividual
Shares747
Max PriceUS$176.01

Ownership Breakdown


Management Team

  • Jay Gerlach (64yo)

    Executive Chairman of the Board

    • Tenure: 22.8yrs
    • Compensation: US$720.05k
  • David Segal

    Senior Corporate Counsel and Assistant Secretary

    • Tenure: 0yrs
  • Dave Ciesinski (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$3.55m
  • Matthew Shurte (51yo)

    General Counsel

    • Tenure: 0yrs
  • David Nagle (54yo)

    Chief Supply Chain Officer of T. Marzetti Company

    • Tenure: 2.8yrs
    • Compensation: US$916.86k
  • Doug Fell (57yo)

    Transformation Program Officer

    • Tenure: 0.5yrs
    • Compensation: US$1.34m
  • Dale Ganobsik

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Tom Pigott (54yo)

    VP, Assistant Secretary & CFO

    • Tenure: 0.5yrs
    • Compensation: US$749.22k
  • Carl Stealey (48yo)

    President of Retail Division at T. Marzetti Company

    • Tenure: 1yrs
  • Kristin Bird (48yo)

    President of Foodservice Division of T. Marzetti Company

    • Tenure: 0.8yrs

Board Members

  • Bill Carter (65yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$203.67k
  • Alan Harris (65yo)

    Lead Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$203.67k
  • Jay Gerlach (64yo)

    Executive Chairman of the Board

    • Tenure: 22.8yrs
    • Compensation: US$720.05k
  • Robert Fox (70yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$189.29k
  • Zuheir Sofia (74yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$199.29k
  • Mike Keown (57yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$151.19k
  • Neeli Bendapudi (56yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$198.04k
  • Dave Ciesinski (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$3.55m
  • Ken Cooke (70yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$213.04k
  • Bob Ostryniec (58yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$196.17k

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$3.832b
  • Shares outstanding: 27.49m
  • 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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:11
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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