| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
LANC Stock Overview
Lancaster Colony Corporation manufactures and markets food products for the retail and foodservice markets in the United States.
Lancaster Colony Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$121.72 |
| 52 Week High | US$201.31 |
| 52 Week Low | US$118.99 |
| Beta | 0.17 |
| 1 Month Change | -23.39% |
| 3 Month Change | -24.74% |
| 1 Year Change | -34.91% |
| 3 Year Change | -16.63% |
| 5 Year Change | -3.02% |
| Change since IPO | 1,847.51% |
Recent News & Updates
Lancaster Colony (NASDAQ:LANC) Is Reinvesting At Lower Rates Of Return
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...
Continue To Avoid Lancaster Colony
While the shares are cheaper than last time I checked them out, "cheaper" is not the same as "cheap." I do a back of the envelope comparison between cash received from dividends and a 10-year Treasury. It doesn't look good for shareholders. While I normally like to sell deep out of the money puts, the premia on offer for reasonable strike prices are too thin, so the exercise is pointless.
Shareholder Returns
| LANC | US Food | US Market | |
|---|---|---|---|
| 7D | -12.5% | -7.1% | -2.7% |
| 1Y | -34.9% | -5.2% | -12.9% |
Return vs Industry: LANC underperformed the US Food industry which returned -5.2% over the past year.
Return vs Market: LANC underperformed the US Market which returned -12.9% over the past year.
Price Volatility
| LANC volatility | |
|---|---|
| LANC Average Weekly Movement | 5.0% |
| Food Industry Average Movement | 6.6% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 2.9% |
Stable Share Price: LANC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LANC's weekly volatility (5%) 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$3.35b |
| Earnings (TTM) | US$92.04m |
| Revenue (TTM) | US$1.61b |
36.4x
P/E Ratio2.1x
P/S RatioIs LANC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LANC income statement (TTM) | |
|---|---|
| Revenue | US$1.61b |
| Cost of Revenue | US$1.26b |
| Gross Profit | US$353.98m |
| Other Expenses | US$261.94m |
| Earnings | US$92.04m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.34 |
| Gross Margin | 21.99% |
| Net Profit Margin | 5.72% |
| Debt/Equity Ratio | 0% |
How did LANC perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield92%
Payout RatioDoes LANC pay a reliable dividends?
See LANC dividend history and benchmarks| Lancaster Colony dividend dates | |
|---|---|
| Ex Dividend Date | Jun 08 2022 |
| Dividend Pay Date | Jun 30 2022 |
| Days until Ex dividend | 17 days |
| Days until Dividend pay date | 39 days |
Does LANC pay a reliable dividends?
See LANC dividend history and benchmarksValuation
Is Lancaster Colony undervalued compared to its fair value and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
36.4x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LANC ($121.72) is trading above our estimate of fair value ($94.34)
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 (18.5x).
PE vs Market: LANC is poor value based on its PE Ratio (36.4x) compared to the US market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: LANC is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: LANC is overvalued based on its PB Ratio (4x) compared to the US Food industry average (1.9x).
Future Growth
How is Lancaster Colony forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
39.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LANC's forecast earnings growth (39.2% per year) is above the savings rate (1.9%).
Earnings vs Market: LANC's earnings (39.2% per year) are forecast to grow faster than the US market (12.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LANC's revenue (7.1% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: LANC's revenue (7.1% 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
Past Performance
How has Lancaster Colony performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LANC has high quality earnings.
Growing Profit Margin: LANC's current net profit margins (5.7%) are lower than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: LANC's earnings have grown by 0.6% 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 (-34.6%) over the past year, making it difficult to compare to the Food industry average (13%).
Return on Equity
High ROE: LANC's Return on Equity (11%) is considered low.
Financial Health
How is Lancaster Colony's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: LANC's short term assets ($361.6M) exceed its short term liabilities ($179.5M).
Long Term Liabilities: LANC's short term assets ($361.6M) exceed its long term liabilities ($85.5M).
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?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.63%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LANC's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: LANC's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (4.11%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (92.5%), LANC's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: LANC is paying a dividend but the company has no free cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Dave Ciesinski (55 yo)
6.08yrs
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 below average for companies of similar size in the US market ($USD6.86M).
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 (3.6 years average tenure).
Board Members
Experienced Board: LANC's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LANC 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
- Implied Market Cap: US$3.350b
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| 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.