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LANC

Lancaster Colony NasdaqGS:LANC Stock Report

Last Price

US$121.72

Market Cap

US$3.3b

7D

-12.5%

1Y

-34.9%

Updated

21 May, 2022

Data

Company Financials +
LANC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Lancaster Colony
Historical stock prices
Current Share PriceUS$121.72
52 Week HighUS$201.31
52 Week LowUS$118.99
Beta0.17
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 IPO1,847.51%

Recent News & Updates

May 20
Lancaster Colony (NASDAQ:LANC) Is Reinvesting At Lower Rates Of Return

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...

May 03

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

LANCUS FoodUS 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

Is LANC's price volatile compared to industry and market?
LANC volatility
LANC Average Weekly Movement5.0%
Food Industry Average Movement6.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
19613,200Dave Ciesinskihttps://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

How do Lancaster Colony's earnings and revenue compare to its market cap?
LANC fundamental statistics
Market CapUS$3.35b
Earnings (TTM)US$92.04m
Revenue (TTM)US$1.61b

36.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LANC income statement (TTM)
RevenueUS$1.61b
Cost of RevenueUS$1.26b
Gross ProfitUS$353.98m
Other ExpensesUS$261.94m
EarningsUS$92.04m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.34
Gross Margin21.99%
Net Profit Margin5.72%
Debt/Equity Ratio0%

How did LANC perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

92%

Payout Ratio

Does LANC pay a reliable dividends?

See LANC dividend history and benchmarks
When do you need to buy LANC by to receive an upcoming dividend?
Lancaster Colony dividend dates
Ex Dividend DateJun 08 2022
Dividend Pay DateJun 30 2022
Days until Ex dividend16 days
Days until Dividend pay date38 days

Does LANC pay a reliable dividends?

See LANC dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation 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

3/6

Future 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

2/6

Past 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

6/6

Financial 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

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.63%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 22 2022Ex Dividend DateJun 08 2022Dividend Pay DateJun 30 202222 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.