Overview Dividends

(LW) Lamb Weston Holdings - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US5132721045

Frozen Potatoes, Fries, Wedges, Diced, Appetizers

LW EPS (Earnings per Share)

EPS Growth (3Y CAGR): 5.55%
EPS Trend (3Y Correlation): -41.1%

LW Revenue

Revenue Growth (3Y CAGR): 15.57%
Revenue Trend (3Y Correlation): 65.0%

Description: LW Lamb Weston Holdings

Lamb Weston Holdings Inc (NYSE:LW) is a leading producer, distributor, and marketer of frozen potato products globally. The company operates under a robust brand portfolio, including Lamb Weston, Grown in Idaho, and Alexia, as well as producing products under various customer labels and retailer brands. Its diverse product offerings cater to a wide range of customers, including quick-service and full-service restaurants, grocery stores, mass merchants, and foodservice distributors.

From a business perspective, Lamb Weston Holdings has demonstrated a strong presence in the packaged foods industry, with a significant market capitalization of $6.78 billion. The companys return on equity (ROE) stands at 21.30%, indicating efficient use of shareholder capital. Additionally, its forward price-to-earnings ratio of 13.53 suggests a relatively attractive valuation compared to its current earnings. The companys ability to maintain a strong brand presence and expand its customer base across various channels is crucial to its future growth.

Key performance indicators (KPIs) to monitor for Lamb Weston Holdings include revenue growth, gross margin expansion, and operating cash flow generation. The companys ability to maintain its pricing power, manage raw material costs, and optimize its distribution network will be critical in driving its profitability. Furthermore, the trend in the frozen potato products market, competitive landscape, and the companys innovation pipeline will also be important factors to watch.

From a valuation perspective, analyzing Lamb Westons enterprise value-to-EBITDA (EV/EBITDA) ratio, dividend yield, and payout ratio can provide additional insights into its financial health and attractiveness to investors. A comprehensive analysis of these metrics will help investors make informed decisions about the companys potential for long-term growth and returns.

LW Stock Overview

Market Cap in USD	7,862m
Sub-Industry	Packaged Foods & Meats
IPO / Inception	2016-11-10

LW Stock Ratings

Growth Rating	-38.8%
Fundamental	58.3%
Dividend Rating	67.3%
Return 12m vs S&P 500	-24.5%
Analyst Rating	3.50 of 5

LW Dividends

Dividend Yield 12m	2.61%
Yield on Cost 5y	2.43%
Annual Growth 5y	9.37%
Payout Consistency	100.0%
Payout Ratio	43.8%

LW Growth Ratios

Growth Correlation 3m	54.8%
Growth Correlation 12m	-68.7%
Growth Correlation 5y	-0.3%
CAGR 5y	-8.16%
CAGR/Max DD 3y	-0.14
CAGR/Mean DD 3y	-0.37
Sharpe Ratio 12m	0.01
Alpha	-21.48
Beta	0.557
Volatility	37.42%
Current Volume	1009.5k
Average Volume 20d	1203.6k
Stop Loss	54.4 (-3.6%)
Signal	-0.36

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (357.2m TTM) > 0 and > 6% of Revenue (6% = 387.1m TTM)

FCFTA 0.03 (>2.0%) and ΔFCFTA 4.89pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 8.63% (prev 7.20%; Δ 1.43pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.12 (>3.0%) and CFO 868.3m > Net Income 357.2m (YES >=105%, WARN >=100%)

Net Debt (4.08b) to EBITDA (1.07b) ratio: 3.81 <= 3.0 (WARN <= 3.5)

Current Ratio 1.38 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (141.0m) change vs 12m ago -2.76% (target <= -2.0% for YES)

Gross Margin 21.17% (prev 27.70%; Δ -6.53pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 87.42% (prev 87.79%; Δ -0.37pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 3.70 (EBITDA TTM 1.07b / Interest Expense TTM 180.0m) >= 6 (WARN >= 3)

Altman Z'' 2.92

(A) 0.08 = (Total Current Assets 2.03b - Total Current Liabilities 1.48b) / Total Assets 7.39b

(B) 0.39 = Retained Earnings (Balance) 2.85b / Total Assets 7.39b

(D) 0.54 = Book Value of Equity 3.05b / Total Liabilities 5.65b

Total Rating: 2.92 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 58.27

1. Piotroski 4.0pt = -1.0

2. FCF Yield 1.93% = 0.96

3. FCF Margin 3.57% = 0.89

4. Debt/Equity 2.39 = 0.17

5. Debt/Ebitda 3.87 = -2.49

6. ROIC - WACC 2.61% = 3.27

7. RoE 20.89% = 1.74

8. Rev. Trend 64.97% = 3.25

9. Rev. CAGR 15.57% = 1.95

10. EPS Trend -41.08% = -1.03

11. EPS CAGR 5.55% = 0.55

What is the price of LW shares?

As of September 15, 2025, the stock is trading at USD 56.42 with a total of 1,009,500 shares traded.
Over the past week, the price has changed by -2.00%, over one month by +2.90%, over three months by +2.71% and over the past year by -10.74%.

Is Lamb Weston Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Lamb Weston Holdings is currently (September 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 58.27 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LW is around 52.69 USD . This means that LW is currently overvalued and has a potential downside of -6.61%.

Is LW a buy, sell or hold?

Lamb Weston Holdings has received a consensus analysts rating of 3.50. Therefor, it is recommend to hold LW.

Strong Buy: 2
Buy: 3
Hold: 9
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the LW price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	63.7	13%
Analysts Target Price	63.7	13%
ValueRay Target Price	57.2	1.3%

Last update: 2025-09-15 04:39

LW Fundamental Data Overview

Market Cap USD = 7.86b (7.86b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 70.7m USD (last quarter)
P/E Trailing = 22.568
P/E Forward = 17.9211
P/S = 1.2187
P/B = 4.5246
P/EG = 2.5298
Beta = 0.476
Revenue TTM = 6.45b USD
EBIT TTM = 666.3m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 3.68b USD (from longTermDebt, last quarter)
Short Term Debt = 472.5m USD (from shortTermDebt, last quarter)
Debt = 4.16b USD (Calculated: Short Term 472.5m + Long Term 3.68b)
Net Debt = 4.08b USD (from netDebt column, last quarter)
Enterprise Value = 11.95b USD (7.86b + Debt 4.16b - CCE 70.7m)
Interest Coverage Ratio = 3.70 (Ebit TTM 666.3m / Interest Expense TTM 180.0m)
FCF Yield = 1.93% (FCF TTM 230.1m / Enterprise Value 11.95b)
FCF Margin = 3.57% (FCF TTM 230.1m / Revenue TTM 6.45b)
Net Margin = 5.54% (Net Income TTM 357.2m / Revenue TTM 6.45b)
Gross Margin = 21.17% ((Revenue TTM 6.45b - Cost of Revenue TTM 5.09b) / Revenue TTM)
Tobins Q-Ratio = 3.91 (Enterprise Value 11.95b / Book Value Of Equity 3.05b)
Interest Expense / Debt = 1.06% (Interest Expense 44.2m / Debt 4.16b)
Taxrate = 28.60% (143.1m / 500.3m)
NOPAT = 475.7m (EBIT 666.3m * (1 - 28.60%))
Current Ratio = 1.38 (Total Current Assets 2.03b / Total Current Liabilities 1.48b)
Debt / Equity = 2.39 (Debt 4.16b / last Quarter total Stockholder Equity 1.74b)
Debt / EBITDA = 3.87 (Net Debt 4.08b / EBITDA 1.07b)
Debt / FCF = 18.06 (Debt 4.16b / FCF TTM 230.1m)
Total Stockholder Equity = 1.71b (last 4 quarters mean)
RoA = 4.83% (Net Income 357.2m, Total Assets 7.39b )
RoE = 20.89% (Net Income TTM 357.2m / Total Stockholder Equity 1.71b)
RoCE = 12.35% (Ebit 666.3m / (Equity 1.71b + L.T.Debt 3.68b))
RoIC = 8.16% (NOPAT 475.7m / Invested Capital 5.83b)
WACC = 5.54% (E(7.86b)/V(12.02b) * Re(8.07%)) + (D(4.16b)/V(12.02b) * Rd(1.06%) * (1-Tc(0.29)))
Shares Correlation 3-Years: -47.33 | Cagr: -0.23%
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 70.37% ; FCFE base≈230.1m ; Y1≈151.1m ; Y5≈69.1m
Fair Price DCF = 9.71 (DCF Value 1.35b / Shares Outstanding 139.4m; 5y FCF grow -40.0% → 3.0% )
Revenue Correlation: 64.97 | Revenue CAGR: 15.57%
Rev Growth-of-Growth: -20.89
EPS Correlation: -41.08 | EPS CAGR: 5.55%
EPS Growth-of-Growth: -35.78

Additional Sources for LW Stock

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