Investment Thesis
Lancaster (LANC) is an emerging leader in the specialty food sector. The firm holds fourteen leading brands under frozen breads, dressings, dips, croutons and has a number of brand licensing agreements with external licensors. In the last five years Lancaster’s bottom line shot up by more than 7%, averaging about 10.4% in profit margin and just above 1% in margin volatility. With less than 5% in non-current liability, this features a strong capital structure at its core. Although dividend yield is not much, the amount is steadily increasing. However, my analysis