Lancaster Story

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LANC -- USA Stock  

USD 171.66  2.72  1.61%

It looks like Lamb Weston will be up for a correction faster as its share price went up 0.03% today to Lancaster Colony's 4.11%While some baby boomers are getting worried about consumer defensive space, we are going to go over both, Lancaster Colony and Lamb Weston as potential short-term investments. We are going to analyze some of the competitive aspects of both Lancaster and Lamb Weston.
Published over three weeks ago
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Is Lancaster riskier than Lamb Weston Holdings (NYSE:LW)?
By analyzing existing basic indicators between Lancaster Colony and Lamb Weston, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Lamb Weston with a short position in Lancaster Colony. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lancaster Colony has an asset utilization ratio of 209.54 percent. This suggests that the company is making $2.1 for each dollar of assets. An increasing asset utilization means that Lancaster Colony is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Lancaster or Lamb Weston is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Lancaster Colony dividends

A dividend is the distribution of a portion of Lancaster Colony earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Lancaster Colony dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Lancaster one year expected dividend income is about $1.8 per share.
Lancaster Colony Dividend Yield is projected to slightly decrease based on the last few years of reporting. The past year's Dividend Yield was at 0.018. The current year Dividends per Basic Common Share is expected to grow to 3.06, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (81.6 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-75.6 M-81.6 M
Dividend Yield 0.018  0.0214 
Dividends per Basic Common Share 2.75  3.06 
Investing in dividend-paying stocks, such as Lancaster Colony is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Lancaster Colony must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Lancaster Colony. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Lancaster Colony's Liquidity

Lancaster Colony financial leverage refers to using borrowed capital as a funding source to finance Lancaster Colony ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lancaster Colony financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lancaster Colony's total debt and its cash.

Correlation Between Lancaster and Lamb Weston Holdings

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Lancaster Colony together with similar or unrelated positions with a negative correlation. For example, you can also add Lamb Weston to your portfolio. If Lamb Weston is not perfectly correlated to Lancaster Colony it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Lancaster Colony for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between LANC and LW for more information.

Acquisition by Robert Ostryniec of 579 shares of Lancaster Colony subject to Rule 16b-3

Legal trades by Lancaster Colony insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lancaster insider trading alert for grant of common stock by Robert Ostryniec, the corporate stakeholder, on 13th of November 2020. This event was filed by Lancaster Colony Corp with SEC on 2020-11-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Lancaster Colony Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Lancaster Colony revenue. Based on the latest financial disclosure, Lancaster Colony reported 1.33 B of revenue. This is 91.05% lower than that of the Consumer Defensive sector and 84.01% lower than that of the Packaged Foods industry. The revenue for all United States stocks is 85.9% higher than that of Lancaster Colony. As for Lamb Weston we see revenue of 3.67 B, which is 55.87% lower than that of the Packaged Foods

Sector
8.3 B
LW
3.7 B
LANC1.33 Billion9.99
Sector8.32 Billion62.45
LW3.67 Billion27.56

A growth case for Lancaster Colony

Current Total Risk Alpha is up to 0.06. Price may slip again. Lancaster Colony has relatively low volatility with skewness of -1.07 and kurtosis of 2.92. However, we advise all investors to independently investigate Lancaster Colony to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Lancaster Colony Investment

Whereas many other companies in the packaged foods industry are either recovering or due for a correction, Lancaster Colony may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Lancaster Colony holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lancaster Colony.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Lancaster Colony. Please refer to our Terms of Use for any information regarding our disclosure principles.

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