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Lancaster Colony

Nasdaq:LANC
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LANC
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States. The last earnings update was 77 days ago. More info.


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LANC Share Price and Events
7 Day Returns
0.1%
NasdaqGS:LANC
-0.8%
US Food
1.1%
US Market
1 Year Returns
3.9%
NasdaqGS:LANC
-0.3%
US Food
4.7%
US Market
LANC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lancaster Colony (LANC) 0.1% -1.5% -4.1% 3.9% 16% 60.2%
US Food -0.8% -0.3% 2.5% -0.3% -16.7% 21.6%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • LANC outperformed the Food industry which returned -0.3% over the past year.
  • LANC matched the United States of America Market (4.7%) over the past year.
Price Volatility
LANC
Industry
5yr Volatility vs Market

LANC Value

 Is Lancaster Colony undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lancaster Colony to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lancaster Colony.

NasdaqGS:LANC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LANC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.564 (1 + (1- 21%) (0%))
0.708
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:LANC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lancaster Colony is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:LANC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 119.34 Analyst x1 111.01
2021 147.52 Analyst x1 127.65
2022 154.11 Est @ 4.47% 124.06
2023 160.20 Est @ 3.95% 119.97
2024 165.95 Est @ 3.58% 115.60
2025 171.47 Est @ 3.33% 111.12
2026 176.87 Est @ 3.15% 106.62
2027 182.21 Est @ 3.02% 102.18
2028 187.56 Est @ 2.94% 97.85
2029 192.95 Est @ 2.87% 93.64
Present value of next 10 years cash flows $1,109.70
NasdaqGS:LANC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $192.95 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$4,157.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,157.29 ÷ (1 + 7.5%)10
$2,017.47
NasdaqGS:LANC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,109.70 + $2,017.47
$3,127.17
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,127.17 / 27.51
$113.69
NasdaqGS:LANC Discount to Share Price
Calculation Result
Value per share (USD) From above. $113.69
Current discount Discount to share price of $147.99
= -1 x ($147.99 - $113.69) / $113.69
-30.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lancaster Colony is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lancaster Colony's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lancaster Colony's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LANC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.46
NasdaqGS:LANC Share Price ** NasdaqGS (2019-07-16) in USD $147.99
United States of America Food Industry PE Ratio Median Figure of 42 Publicly-Listed Food Companies 25.55x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lancaster Colony.

NasdaqGS:LANC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LANC Share Price ÷ EPS (both in USD)

= 147.99 ÷ 5.46

27.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Lancaster Colony's expected growth come at a high price?
Raw Data
NasdaqGS:LANC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.1%per year
United States of America Food Industry PEG Ratio Median Figure of 31 Publicly-Listed Food Companies 1.58x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:LANC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.13x ÷ 5.1%

5.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lancaster Colony is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lancaster Colony's assets?
Raw Data
NasdaqGS:LANC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.00
NasdaqGS:LANC Share Price * NasdaqGS (2019-07-16) in USD $147.99
United States of America Food Industry PB Ratio Median Figure of 68 Publicly-Listed Food Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:LANC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LANC Share Price ÷ Book Value per Share (both in USD)

= 147.99 ÷ 26.00

5.69x

* Primary Listing of Lancaster Colony.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lancaster Colony is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Lancaster Colony's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Lancaster Colony has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LANC Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lancaster Colony expected to grow at an attractive rate?
  • Lancaster Colony's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lancaster Colony's earnings growth is positive but not above the United States of America market average.
  • Lancaster Colony's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LANC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LANC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 5.1%
NasdaqGS:LANC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LANC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LANC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 1,415 190 171 1
2020-06-30 1,372 174 157 3
2019-06-30 1,316 170 153 3
NasdaqGS:LANC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,292 187 150
2018-12-31 1,271 190 147
2018-09-30 1,241 163 145
2018-06-30 1,223 161 135
2018-03-31 1,205 156 131
2017-12-31 1,202 154 118
2017-09-30 1,209 140 111
2017-06-30 1,202 146 115
2017-03-31 1,196 149 117
2016-12-31 1,190 144 132
2016-09-30 1,188 155 127
2016-06-30 1,191 146 122

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LANC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Lancaster Colony Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LANC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 6.21 6.21 6.21 1.00
2020-06-30 5.69 5.74 5.63 2.00
2019-06-30 5.57 5.59 5.55 2.00
NasdaqGS:LANC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.46
2018-12-31 5.35
2018-09-30 5.28
2018-06-30 4.93
2018-03-31 4.79
2017-12-31 4.31
2017-09-30 4.06
2017-06-30 4.21
2017-03-31 4.29
2016-12-31 4.82
2016-09-30 4.65
2016-06-30 4.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lancaster Colony is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lancaster Colony's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lancaster Colony has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LANC Past Performance

  How has Lancaster Colony performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lancaster Colony's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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%).
Earnings and Revenue History
Lancaster Colony's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lancaster Colony Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LANC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,292.29 149.65 137.92
2018-12-31 1,270.58 146.62 130.08
2018-09-30 1,240.66 144.65 126.64
2018-06-30 1,222.93 135.04 125.37
2018-03-31 1,204.63 131.16 122.50
2017-12-31 1,202.29 118.09 124.43
2017-09-30 1,209.40 111.12 122.43
2017-06-30 1,201.84 115.12 121.77
2017-03-31 1,196.46 117.27 121.12
2016-12-31 1,190.39 131.79 118.62
2016-09-30 1,188.39 127.26 116.01
2016-06-30 1,191.11 121.52 112.15
2016-03-31 1,184.34 116.47 109.66
2015-12-31 1,159.97 107.87 106.48
2015-09-30 1,138.61 106.41 103.98
2015-06-30 1,104.51 101.54 101.23
2015-03-31 1,085.61 96.88 100.50
2014-12-31 1,064.06 95.33 98.46
2014-09-30 1,052.93 99.51 95.70
2014-06-30 1,041.08 100.81 93.86
2014-03-31 1,027.46 105.33 90.73
2013-12-31 1,032.71 107.19 90.77
2013-09-30 970.96 100.95 86.38
2013-06-30 1,013.80 103.53 89.84
2013-03-31 1,042.57 104.05 91.21
2012-12-31 1,066.57 101.51 93.95
2012-09-30 1,147.82 101.01 99.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lancaster Colony has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Lancaster Colony used its assets more efficiently than the US Food industry average last year based on Return on Assets.
  • Lancaster Colony's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lancaster Colony's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lancaster Colony has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LANC Health

 How is Lancaster Colony's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lancaster Colony's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Lancaster Colony's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Lancaster Colony has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lancaster Colony Company Filings, last reported 3 months ago.

NasdaqGS:LANC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 715.01 0.00 187.39
2018-12-31 704.77 0.00 194.53
2018-09-30 674.02 0.00 217.94
2018-06-30 652.28 0.00 205.75
2018-03-31 632.86 0.00 187.33
2017-12-31 621.01 0.00 178.77
2017-09-30 590.55 0.00 157.18
2017-06-30 575.98 0.00 143.10
2017-03-31 559.18 0.00 124.75
2016-12-31 559.48 0.00 118.51
2016-09-30 534.51 0.00 145.75
2016-06-30 513.60 0.00 118.08
2016-03-31 498.49 0.00 94.43
2015-12-31 482.61 0.00 87.14
2015-09-30 596.72 0.00 199.41
2015-06-30 580.92 0.00 182.20
2015-03-31 569.37 0.00 161.42
2014-12-31 561.27 0.00 256.15
2014-09-30 540.13 0.00 227.56
2014-06-30 528.60 0.00 211.54
2014-03-31 518.51 0.00 201.33
2013-12-31 540.71 0.00 176.26
2013-09-30 512.87 0.00 133.08
2013-06-30 501.22 0.00 123.39
2013-03-31 482.70 0.00 100.61
2012-12-31 471.16 0.00 92.52
2012-09-30 581.96 0.00 192.68
  • 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.
X
Financial health checks
We assess Lancaster Colony's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lancaster Colony has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LANC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.76%
Current annual income from Lancaster Colony dividends. Estimated to be 1.76% next year.
If you bought $2,000 of Lancaster Colony shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lancaster Colony's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Lancaster Colony's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LANC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LANC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 2.60 1.00
2020-06-30 2.60 1.00
2019-06-30 2.55 1.00
NasdaqGS:LANC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-23 2.600 1.762
2019-02-27 2.600 1.704
2018-11-14 2.600 1.520
2018-08-22 2.400 1.526
2018-05-24 2.400 1.722
2018-02-28 2.400 1.941
2017-11-15 2.400 1.893
2017-08-16 2.200 1.831
2017-02-22 2.200 1.745
2016-11-21 2.200 1.603
2016-08-17 2.000 1.507
2016-05-25 2.000 1.587
2016-02-24 2.000 1.797
2015-11-16 2.000 1.813
2015-08-19 1.840 1.817
2015-05-27 1.840 2.008
2015-02-25 1.840 1.996
2014-11-17 1.840 1.986
2014-08-19 1.760 2.005
2014-05-28 1.760 1.908
2014-02-26 1.760 1.887
2013-11-18 1.760 2.039
2013-08-21 1.600 2.017
2013-05-22 1.600 1.954
2013-02-27 1.520 1.965
2012-11-19 1.520 2.114
2012-08-22 1.440 1.974
2012-05-23 1.440 2.086
2012-02-22 1.440 2.210
2011-11-21 1.440 2.086
2011-08-17 1.320 2.130
2011-05-25 1.320 2.209
2011-02-22 1.320 2.216
2010-11-15 1.320 2.391
2010-08-18 1.200 2.499
2010-05-26 1.200 2.266
2010-02-24 1.200 2.079
2009-11-16 1.200 2.336
2009-08-19 1.140 2.264
2009-05-27 1.140 2.538
2009-02-25 1.140 2.670
2008-11-17 1.140 3.370
2008-08-20 1.120 3.314

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Lancaster Colony's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Lancaster Colony's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lancaster Colony afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lancaster Colony has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LANC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Ciesinski
COMPENSATION $2,731,617
AGE 53
TENURE AS CEO 2 years
CEO Bio

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 18, 2016. He has been the President of T. Marzetti since April 18, 2016. He serves as the Chief Commercial Officer and Executive Vice President of Forever, Inc. Mr. Ciesinski served as Chief Operating Officer at Lancaster Colony Corporation from April 18, 2016 to July 1, 2017. He served as Vice President of Transition at The Kraft Heinz Foods Company until June 7, 2013. He served as the President of Meal Solutions Division at Kraft Foods Group, Inc., and served as its Executive Vice President and President of Meals & Desserts. He was responsible for leading Kraft’s Meals & Desserts business unit, which includes iconic brands like Kraft Macaroni & Cheese, Velveeta dinners, Cool Whip whipped topping and Jell-O dry packaged and ready-to-eat desserts. He joined Kraft in July 2014. He served as Group Vice President and Chief Marketing Officer of the U.S. Ketchup’s U.S. Consumer Products division. He served as Vice President of Office of the Chairman & Strategy at Kraft Heinz Intermediate Corporation II from February 2006 to June 20, 2013 and served as its Vice President of Strategic Planning. He served as Vice President of its U.S. Ketchup franchise from 2006 to 2011. He has been Director of Lancaster Colony Corporation since July 1, 2017. He served as Fire Support Officer in a front line mechanized infantry unit during the First Gulf War. He was awarded the Bronze Star for his leadership in combat. Mr. Ciesinski later earned his MBA from the Tepper School of Business at Carnegie Mellon University and a Graduate of the United States Military Academy at West Point. From 2012 to 2013, Mr. Ciesinski served as the Vice President of Global Business Development at H.J. Heinz Company, in which capacity he was responsible for leading the corporate business development activities of H.J. Heinz Company.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lancaster Colony management team in years:

2
Average Tenure
54
Average Age
  • The tenure for the Lancaster Colony management team is about average.
Management Team

Jay Gerlach

TITLE
Executive Chairman
COMPENSATION
$717K
AGE
64
TENURE
2.5 yrs

Dave Ciesinski

TITLE
President
COMPENSATION
$3M
AGE
53
TENURE
2 yrs

Doug Fell

TITLE
Transformation Program Officer
COMPENSATION
$997K
AGE
57
TENURE
0.3 yrs

David Nagle

TITLE
Senior Vice President of Supply Chain - T. Marzetti Company
COMPENSATION
$768K
AGE
54
TENURE
2.5 yrs

Tom Pigott

TITLE
VP, Assistant Secretary & CFO
AGE
54
TENURE
0.3 yrs

Dale Ganobsik

TITLE
VP of Investor Relations & Treasurer

Matthew Shurte

TITLE
General Counsel
AGE
51

Timothy Tate

TITLE
Senior Vice President of Foodservice Sales of T. Marzetti Company
AGE
64

David Segal

TITLE
Senior Corporate Counsel and Assistant Secretary
Board of Directors Tenure

Average tenure and age of the Lancaster Colony board of directors in years:

7.1
Average Tenure
64.5
Average Age
  • The tenure for the Lancaster Colony board of directors is about average.
Board of Directors

Dave Ciesinski

TITLE
President
COMPENSATION
$3M
AGE
53
TENURE
2 yrs

Robert Fox

TITLE
Independent Director
COMPENSATION
$189K
AGE
70
TENURE
28.5 yrs

Jay Gerlach

TITLE
Executive Chairman
COMPENSATION
$717K
AGE
64
TENURE
22.5 yrs

Zuheir Sofia

TITLE
Independent Director
COMPENSATION
$199K
AGE
74
TENURE
21.5 yrs

Ken Cooke

TITLE
Director
COMPENSATION
$203K
AGE
70
TENURE
9.5 yrs

Alan Harris

TITLE
Lead Independent Director
COMPENSATION
$194K
AGE
65
TENURE
0.7 yrs

Neeli Bendapudi

TITLE
Independent Director
COMPENSATION
$190K
AGE
56
TENURE
13.9 yrs

Bob Ostryniec

TITLE
Independent Director
COMPENSATION
$183K
AGE
58
TENURE
4.7 yrs

Bill Carter

TITLE
Director
COMPENSATION
$190K
AGE
65
TENURE
3.7 yrs

Mike Keown

TITLE
Independent Director
AGE
57
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Nov 18 Sell Timothy Tate Individual 07. Nov 18 07. Nov 18 -747 $176.01 $-131,479
06. Sep 18 Sell Douglas Fell Individual 04. Sep 18 04. Sep 18 -500 $154.90 $-77,452
X
Management checks
We assess Lancaster Colony's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lancaster Colony has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LANC News

Simply Wall St News

Should You Be Impressed By Lancaster Colony Corporation's (NASDAQ:LANC) ROE?

View our latest analysis for Lancaster Colony How Do You Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Lancaster Colony: 21% = US$150m ÷ US$715m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Lancaster Colony's Debt And Its 21% Return On Equity Shareholders will be pleased to learn that Lancaster Colony has not one iota of net debt!

Simply Wall St -

Should Lancaster Colony (NASDAQ:LANC) Be Disappointed With Their 57% Profit?

For example, the Lancaster Colony Corporation (NASDAQ:LANC) share price is up 57% in the last 5 years, clearly besting than the market return of around 42% (ignoring dividends). … Over half a decade, Lancaster Colony managed to grow its earnings per share at 7.1% a year. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Does Lancaster Colony's (NASDAQ:LANC) Share Price Gain of 57% Match Its Business Performance?

To wit, the Lancaster Colony share price has climbed 57% in five years, easily topping the market return of 42% (ignoring dividends). … Over half a decade, Lancaster Colony managed to grow its earnings per share at 7.1% a year. … We note that for Lancaster Colony the TSR over the last 5 years was 79%, which is better than the share price return mentioned above.

Simply Wall St -

Why Lancaster Colony Corporation’s (NASDAQ:LANC) Return On Capital Employed Is Impressive

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Lancaster Colony: 0.23 = US$182m ÷ (US$886m - US$109m) (Based on the trailing twelve months to March 2019.) So, Lancaster Colony has an ROCE of 23%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … The Bottom Line On Lancaster Colony's ROCE With low current liabilities and a high ROCE, Lancaster Colony could be worthy of further investigation.

Simply Wall St -

Lancaster Colony Corporation (NASDAQ:LANC): Has Recent Earnings Growth Beaten Long-Term Trend?

In this commentary, I will examine Lancaster Colony Corporation's (NASDAQ:LANC) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the food industry performed. … Check out our latest analysis for Lancaster Colony How LANC fared against its long-term earnings performance and its industry LANC's trailing twelve-month earnings (from 31 March 2019) of US$150m has jumped 14% compared to the previous year. … You should continue to research Lancaster Colony to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LANC’s future growth?

Simply Wall St -

Shareholders Are Loving Lancaster Colony Corporation's (NASDAQ:LANC) 1.8% Yield

Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … Conclusion To summarise, shareholders should always check that Lancaster Colony's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Why Lancaster Colony Corporation (NASDAQ:LANC) Could Be Your Next Investment

For those interested in digger a bit deeper into my commentary, take a look at the report on Lancaster Colony here. … Take a look at our free research report of analyst consensus for LANC’s outlook. … The intrinsic value infographic in our free research report helps visualize whether LANC is currently mispriced by the market.

Simply Wall St -

Is Lancaster Colony Corporation (NASDAQ:LANC) Worth US$150 Based On Its Intrinsic Value?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Lancaster Colony Corporation (NASDAQ:LANC) as an investment opportunity. … by estimating the company's future cash flows and discounting them to their present value. … See our latest analysis for Lancaster Colony

Simply Wall St -

Has Lancaster Colony Corporation (NASDAQ:LANC) Got Enough Cash?

This article will examine LANC’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … Check out our latest analysis for Lancaster Colony

Simply Wall St -

Have Insiders Been Selling Lancaster Colony Corporation (NASDAQ:LANC) Shares?

So before you buy or sell Lancaster Colony Corporation (NASDAQ:LANC), you may well want to know whether insiders have been buying or selling. … Lancaster Colony Insider Transactions Over The Last Year. … Insiders in Lancaster Colony didn't buy any shares in the last year

Simply Wall St -

LANC Company Info

Description

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. It offers frozen garlic breads under the New York BRAND Bakery brand; frozen Parkerhouse style yeast and dinner rolls under the Sister Schubert’s brand name; salad dressings under the Marzetti, Simply Dressed, Simply 60, Cardini’s, and Girard’s brands; and vegetable dips and fruit dips under the Marzetti brand. The company also provides flatbread wraps and pizza crusts under the Flatout brand; sprouted grain bakery products under the Angelic Bakehouse brand name; croutons and salad toppings under the New York BRAND Bakery, Chatham Village, and Marzetti brands; and frozen pasta under the Marzetti Frozen Pasta brand name. 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.

Details
Name: Lancaster Colony Corporation
LANC
Exchange: NasdaqGS
Founded: 1961
$4,070,464,950
27,505,000
Website: http://www.lancastercolony.com
Address: Lancaster Colony Corporation
380 Polaris Parkway,
Suite 400,
Westerville,
Ohio, 43082,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LANC Common Stock Nasdaq Global Select US USD 02. Jan 1969
DB LC1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
2,900
Lancaster Colony employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:39
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.