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Lancaster Colony Corporation (NASDAQ:LANC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of LANC, it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Lancaster Colony here.
Flawless balance sheet with solid track record and pays a dividend
LANC delivered a bottom-line expansion of 24% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future. LANC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that LANC manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about LANC’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$4.4b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Income investors would also be happy to know that LANC is a great dividend company, with a current yield standing at 1.6%. LANC has also been regularly increasing its dividend payments to shareholders over the past decade.
For Lancaster Colony, there are three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for LANC’s future growth? Take a look at our free research report of analyst consensus for LANC’s outlook.
- Valuation: What is LANC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LANC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LANC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.