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.

Rewards

Earnings are forecast to grow 4.39% per year

Earnings grew by 5.1% over the past year

Pays a reliable dividend of 1.78%

Risk Analysis

No risks detected for LANC from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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

Stable Share Price: LANC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

LANC

1.4%

US Food

0.7%

US Market


1 Year Return

-11.4%

LANC

11.1%

US Food

18.2%

US Market

Return vs Industry: LANC underperformed the US Food industry which returned 11.1% over the past year.

Return vs Market: LANC underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

LANCIndustryMarket
7 Day-0.2%1.4%0.7%
30 Day0.5%3.5%1.5%
90 Day8.5%1.8%5.0%
1 Year-9.8%-11.4%14.3%11.1%20.8%18.2%
3 Year19.0%12.9%2.1%-6.0%45.2%35.8%
5 Year97.9%73.5%43.5%26.1%71.6%52.7%

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 compared to its fair value and its price relative to the market?

28.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LANC ($157.26) is trading above our estimate of fair value ($143.44)

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 (28.4x) compared to the Food industry average (24.8x).

PE vs Market: LANC is poor value based on its PE Ratio (28.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LANC is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: LANC is overvalued based on its PB Ratio (5.8x) compared to the US Food industry average (2.3x).


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LANC's forecast earnings growth (4.4% per year) is above the savings rate (1.7%).

Earnings vs Market: LANC's earnings (4.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: LANC's revenue (2.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: LANC's revenue (2.9% 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


Next Steps

Past Performance

How has Lancaster Colony performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LANC has high quality earnings.

Growing Profit Margin: LANC's current net profit margins (11.4%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: LANC's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: LANC's earnings growth over the past year (5.1%) is below its 5-year average (9% per year).

Earnings vs Industry: LANC earnings growth over the past year (5.1%) exceeded the Food industry -17.5%.


Return on Equity

High ROE: LANC's Return on Equity (20.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lancaster Colony's financial position?


Financial Position Analysis

Short Term Liabilities: LANC's short term assets ($368.7M) exceed its short term liabilities ($136.6M).

Long Term Liabilities: LANC's short term assets ($368.7M) exceed its long term liabilities ($76.1M).


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?

1.78%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: LANC's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LANC's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.9%), LANC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Dave Ciesinski (53yo)

2.4yrs

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's total compensation ($USD3.55M) is below average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

1.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: LANC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: LANC's board of directors are considered experienced (4.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jay Gerlach (64yo)

    Executive Chairman of the Board

    • Tenure: 22.9yrs
    • Compensation: US$720.05k
  • David Segal

    Senior Corporate Counsel and Assistant Secretary

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

    President

    • Tenure: 2.4yrs
    • Compensation: US$3.55m
  • Matthew Shurte (51yo)

    General Counsel

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

    Chief Supply Chain Officer of T. Marzetti Company

    • Tenure: 2.9yrs
    • Compensation: US$916.86k
  • Doug Fell (57yo)

    Transformation Program Officer

    • Tenure: 0.7yrs
    • Compensation: US$1.34m
  • Dale Ganobsik

    VP of Investor Relations & Treasurer

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

    VP, Assistant Secretary & CFO

    • Tenure: 0.7yrs
    • Compensation: US$749.22k
  • Carl Stealey (48yo)

    President of Retail Division at T. Marzetti Company

    • Tenure: 1.2yrs
  • Kristin Bird (48yo)

    President of Foodservice Division of T. Marzetti Company

    • Tenure: 0.9yrs

Board Members

  • Bill Carter (65yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$203.67k
  • Alan Harris (65yo)

    Lead Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$203.67k
  • Jay Gerlach (64yo)

    Executive Chairman of the Board

    • Tenure: 22.9yrs
    • Compensation: US$720.05k
  • Robert Fox (70yo)

    Independent Director

    • Tenure: 28.9yrs
    • Compensation: US$189.29k
  • Barb Braiser (60yo)

    Independent Director

    • Tenure: 0.08yrs
  • Mike Keown (57yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$151.19k
  • Neeli Bendapudi (56yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$198.04k
  • Dave Ciesinski (53yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$3.55m
  • Ken Cooke (70yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$213.04k
  • Bob Ostryniec (58yo)

    Independent Director

    • Tenure: 5.1yrs
    • 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$4.322b
  • 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 Analysis2019/12/09 23:39
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.