Lancaster Colony (LANC) AI Stock Analysis

• Market Cap: $4.97B
• Dividend Yield: 2.11%
• Average Volume (3M): 151.67K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.32
• Revenue Growth: 0.69%
• EPS Growth: 27.48%
• Country: US
• Employees: 3,400
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 1.54
• Shares Outstanding: 27,569,000
• 10 Day Avg. Volume: 202,374
• 30 Day Avg. Volume: 151,667
• PEG Ratio: 2.41
• Price to Book (P/B): 5.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.88
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 8.60
• Enterprise Value/Ebitda: 3.48
• 1Y Price Target: $198.00
• Price Target Upside: 9.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $194.00 ▲(7.58%Upside)

Lancaster Colony demonstrates strong financial performance and a solid cash flow position, which are the most significant factors in its score. While its valuation is slightly high, the company's strategic initiatives and robust financial health support a positive outlook.

Positive Factors

Acquisition Benefits

The acquisition of a new production facility in Atlanta has been smoother than anticipated, providing additional capacity and reducing costs for Southeastern customers, which boosts confidence in potential future acquisitions.

Financial Performance

Despite the topline shortfall, gross and operating profits reached record levels.

Product Innovation

Lancaster Colony's licensed branded product portfolio, including successful new product introductions and expanded distribution channels, is expected to generate significant revenue growth and establish new brand platforms.

Negative Factors

Revenue Shortfall

LANC reported F3Q25 operating results with a material revenue shortfall that outweighed continued margin improvement.

Valuation Concerns

LANC's current stock is trading below historical valuation range.

Lancaster Colony Business Overview & Revenue Model

Company Description

Lancaster Colony Corporation is a leading manufacturer and marketer of specialty food products. It operates primarily in the food sector, focusing on the production and distribution of a wide array of dressings, sauces, dips, and bakery products. The company is renowned for its high-quality offerings under well-known brand names such as Marzetti, New York Brand, and Sister Schubert's.

How the Company Makes Money

Lancaster Colony makes money through the sale of its specialty food products to retail and foodservice customers. Key revenue streams include the retail channel, where it sells its branded products through grocery stores, supermarkets, and online platforms, and the foodservice channel, supplying products to restaurants, schools, and other institutions. The company leverages strong brand recognition, product innovation, and strategic partnerships with retailers and distributors to drive sales and maintain a competitive edge in the market.

Lancaster Colony Financial Statement Overview

Summary

Lancaster Colony demonstrates strong financial health with solid revenue growth and profitability. The income statement shows efficient operational management with stable margins and a positive growth trajectory. The balance sheet reflects low leverage and effective equity utilization, although asset efficiency could improve. Cash flow is robust, with consistent free cash flow generation, highlighting effective cash conversion.

Income Statement

Lancaster Colony's income statement shows strong financial performance with a consistent increase in revenue over the years, reflected in a TTM revenue of $1.89 billion. The gross profit margin stands at 23.7%, and the net profit margin is 9.0% for TTM, indicating solid profitability. Notably, there is a healthy revenue growth rate of approximately 0.8% from the previous annual period. The EBIT margin of 11.8% and EBITDA margin of 14.3% demonstrate efficient operational management. The company exhibits a strong trajectory in revenue and profit growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.04, indicating low leverage and conservative financial management. The return on equity (ROE) is 17.0%, showing effective use of equity capital to generate profits. The equity ratio is 59.1%, highlighting a robust capital structure. While the company has maintained low debt levels, there is potential for improvement in asset utilization.

Cash Flow

Lancaster Colony's cash flow statement indicates strong cash generation capabilities with a TTM operating cash flow of $207.4 million. The free cash flow growth rate of 4.3% compared to the previous annual period signifies positive cash flow trends. The operating cash flow to net income ratio of 1.22 and free cash flow to net income ratio of 1.13 highlight efficient cash conversion. Overall, the cash flow position is solid, with consistent free cash flow generation.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.89B	1.87B	1.82B	1.68B	1.47B	1.33B
Gross Profit	447.17M	432.30M	388.57M	355.72M	386.72M	358.04M
EBITDA	284.88M	270.13M	217.69M	189.50M	225.87M	215.05M
Net Income	169.65M	158.61M	111.29M	89.59M	142.33M	136.98M
Balance Sheet
Total Assets	1.69B	1.21B	1.11B	1.09B	1.10B	993.35M
Cash, Cash Equivalents and Short-Term Investments	124.56M	163.44M	88.47M	60.28M	188.06M	198.27M
Total Debt	41.82M	57.67M	29.99M	36.23M	33.27M	26.81M
Total Liabilities	690.94M	281.16M	250.73M	245.69M	258.14M	210.05M
Stockholders Equity	996.25M	925.77M	862.27M	844.69M	843.15M	783.30M
Cash Flow
Free Cash Flow	191.85M	183.98M	135.72M	-30.16M	86.32M	88.13M
Operating Cash Flow	207.42M	251.55M	225.90M	101.81M	174.19M	170.77M
Investing Cash Flow	-140.33M	-67.43M	-90.78M	-132.24M	-88.98M	-83.27M
Financing Cash Flow	-107.28M	-109.15M	-106.93M	-97.34M	-95.43M	-85.52M

Lancaster Colony Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 180.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LANC, the sentiment is Positive. The current price of 180.33 is above the 20-day moving average (MA) of 170.57, above the 50-day MA of 169.92, and above the 200-day MA of 176.99, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LANC.

Lancaster Colony Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRFS	77 Outperform	$6.15B	8.61	23.47%	2.43%	3.82%	―
SMPL	76 Outperform	$3.28B	22.35	8.40%	―	11.47%	2.59%
LANC	75 Outperform	$4.97B	29.30	17.73%	2.11%	0.69%	27.48%
POST	71 Outperform	$6.21B	20.09	9.15%	―	1.48%	9.36%
LW	68 Neutral	$7.39B	20.54	21.63%	2.83%	-2.49%	-65.96%
FLO	65 Neutral	$3.42B	15.09	16.34%	6.10%	-1.02%	81.53%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%

Lancaster Colony Corporate Events

Lancaster Colony Rebrands to The Marzetti Company

On June 27, 2025, Lancaster Colony Corporation officially changed its name to The Marzetti Company. This change was made without requiring a shareholder vote and involved amending the company’s articles of incorporation and regulations. The company’s stock will begin trading under the new symbol ‘MZTI’ on the Nasdaq Global Select Market starting July 1, 2025. The name change does not affect the rights of security holders, and existing stock certificates remain valid.

The most recent analyst rating on (LANC) stock is a Hold with a $198.00 price target. To see the full list of analyst forecasts on Lancaster Colony stock, see the LANC Stock Forecast page.

Lancaster Colony Appoints New Retail Business President

On April 7, 2025, T. Marzetti Company, a subsidiary of Lancaster Colony Corporation, announced the appointment of Tanya Berman as President of its Retail business unit, effective April 21, 2025. With extensive experience in management and marketing from companies like Mondelez and Mars Wrigley, Berman’s leadership is expected to enhance the company’s market position and operational efficiency.