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

1.5%

NasdaqGS:LANC

0.8%

US Food

-1.2%

US Market


1 Year Return

3.9%

NasdaqGS:LANC

1.2%

US Food

3.4%

US Market

LANC outperformed the Food industry which returned 1.6% over the past year.

LANC matched the United States of America Market (3.9%) over the past year.


Share holder returns

LANCIndustryMarket
7 Day1.5%0.8%-1.2%
30 Day0.03%0.8%1.2%
90 Day-3.3%2.8%1.7%
1 Year5.6%3.9%4.1%1.2%5.7%3.4%
3 Year22.3%16.2%-8.0%-15.8%45.0%35.5%
5 Year89.3%65.8%38.4%22.1%59.3%41.6%

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?

27.53x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Lancaster Colony's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Lancaster Colony's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Lancaster Colony is overvalued based on earnings compared to the US Food industry average.

Lancaster Colony is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Lancaster Colony is poor value based on expected growth next year.


Price Based on Value of Assets

Lancaster Colony is overvalued based on assets compared to the US Food industry average.


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lancaster Colony's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Lancaster Colony's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

Lancaster Colony's revenue growth is positive but not above the United States of America market average.

Lancaster Colony's earnings growth is positive but not above the United States of America market average.

Lancaster Colony's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Lancaster Colony is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Lancaster Colony performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lancaster Colony's year on year earnings growth rate has been positive over the past 5 years.

Lancaster Colony's 1-year earnings growth exceeds its 5-year average (14.1% vs 8.1%)

Lancaster Colony's earnings growth has exceeded the US Food industry average in the past year (14.1% vs -17.8%).


Return on Equity

Lancaster Colony has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Lancaster Colony used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Lancaster Colony's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Lancaster Colony's financial position?


Financial Position Analysis

Lancaster Colony is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lancaster Colony's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Lancaster Colony has no debt.

Lancaster Colony has not taken on any debt in the past 5 years.

Lancaster Colony has no debt, it does not need to be covered by operating cash flow.

Lancaster Colony has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Lancaster Colony has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Lancaster Colony's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Lancaster Colony's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Dave Ciesinski (53yo)

2.0yrs

Tenure

US$2,731,617

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

Dave's remuneration is lower than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

The tenure for the Lancaster Colony management team is about average.


Board Age and Tenure

7.1yrs

Average Tenure

64.5yo

Average Age

The tenure for the Lancaster Colony board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$131,47909 Nov 18
Timothy Tate
EntityIndividual
Role
Senior Vice President of Foodservice Sales of T. Marzetti Company
Shares747
Max PriceUS$176.01
SellUS$77,45206 Sep 18
Douglas Fell
EntityIndividual
Role
Transformation Program Officer
Shares500
Max PriceUS$154.90

Ownership Breakdown


Management Team

  • Matthew Shurte (51yo)

    General Counsel

  • Dale Ganobsik

    VP of Investor Relations & Treasurer

  • Jay Gerlach (64yo)

    Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: $717.40k
  • Timothy Tate (64yo)

    Senior Vice President of Foodservice Sales of T. Marzetti Company

  • David Segal

    Senior Corporate Counsel and Assistant Secretary

  • Tom Pigott (54yo)

    VP, Assistant Secretary & CFO

    • Tenure: 0.3yrs
  • David Nagle (54yo)

    Senior Vice President of Supply Chain - T. Marzetti Company

    • Tenure: 2.5yrs
    • Compensation: $768.04k
  • Dave Ciesinski (53yo)

    President

    • Tenure: 2.0yrs
    • Compensation: $2.73m
  • Doug Fell (57yo)

    Transformation Program Officer

    • Tenure: 0.3yrs
    • Compensation: $996.79k

Board Members

  • Bill Carter (65yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: $190.17k
  • Robert Fox (70yo)

    Independent Director

    • Tenure: 28.5yrs
    • Compensation: $188.92k
  • Ken Cooke (70yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: $203.30k
  • Alan Harris (65yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: $193.92k
  • Jay Gerlach (64yo)

    Executive Chairman

    • Tenure: 22.5yrs
    • Compensation: $717.40k
  • Bob Ostryniec (58yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: $182.67k
  • Mike Keown (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • Zuheir Sofia (74yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: $198.92k
  • Neeli Bendapudi (56yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: $190.17k
  • Dave Ciesinski (53yo)

    President

    • Tenure: 2.0yrs
    • Compensation: $2.73m

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$4.130b
  • Shares outstanding: 27.51m
  • Website: Click here

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 through two segments, Retail and Foodservice. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 23:44
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.