Lancaster Colony Stock Analysis, Valuation (NASDAQ:LANC)
Take a look at Amigobulls Lancaster Colony stock analysis video. This is our analyst opinion covering the buy and sell arguments for LANC stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Lancaster Colony Corp. Stock Rating 3.3/5
Amigobulls LANC stock analysis takes into account various financial ratios like relative valuation, Lancaster Colony revenue, growth and return on equity based on latest quarter 2018 Q4 financial statements. We also check Lancaster Colony dividend performance. Lancaster Colony valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Lancaster Colony stock rating which is indicative of the company's financial performance.
Should you buy LANC stock?
- Lancaster Colony's average operating margin of 14.27 was exceptional.
- LTM Net margins were good at 10.9% for Lancaster Colony.
- Lancaster Colony generates a high return on invested capital of 27.2.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Lancaster Colony at 22.1.
- The company has a good Free Cash Flow (FCF) margin of 8.6.
Should you sell LANC stock?
- 2018-03 revenue growth of 0.8% YoY was meagre.
- Trading at a PE ratio of 34.8, LANC stock is overvalued in comparison to sector average multiple of 21.8.
- The company is trading at a price to sales multiple of 3.4, which is overvalued in comparison to the Consumer Staples sector average multiple of 1.6.
Amigobulls Lancaster Colony stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of LANC stock. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, Lancaster Colony revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.