(LW) Lamb Weston Holdings - Ratings and Ratios
Frozen Potatoes, Fries, Wedges, Diced, Appetizers
LW EPS (Earnings per Share)
LW Revenue
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 | 8,884m |
Sub-Industry | Packaged Foods & Meats |
IPO / Inception | 2016-11-10 |
LW Stock Ratings
Growth Rating | -30.9% |
Fundamental | 53.5% |
Dividend Rating | 67.3% |
Return 12m vs S&P 500 | -20.7% |
Analyst Rating | 3.50 of 5 |
LW Dividends
Dividend Yield 12m | 2.29% |
Yield on Cost 5y | 2.19% |
Annual Growth 5y | 11.85% |
Payout Consistency | 100.0% |
Payout Ratio | 43.9% |
LW Growth Ratios
Growth Correlation 3m | 50.5% |
Growth Correlation 12m | -49.3% |
Growth Correlation 5y | -4.9% |
CAGR 5y | -7.52% |
CAGR/Max DD 3y (Calmar Ratio) | -0.13 |
CAGR/Mean DD 3y (Pain Ratio) | -0.30 |
Sharpe Ratio 12m | -0.42 |
Alpha | -17.72 |
Beta | 0.506 |
Volatility | 28.91% |
Current Volume | 1389.8k |
Average Volume 20d | 1834.5k |
Stop Loss | 62.2 (-3.1%) |
Signal | 0.46 |
Piotroski VR‑10 (Strict, 0-10) 4.5
Net Income (294.1m TTM) > 0 and > 6% of Revenue (6% = 387.4m TTM) |
FCFTA 0.07 (>2.0%) and ΔFCFTA 9.58pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
NWC/Revenue 9.53% (prev 5.16%; Δ 4.37pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
CFO/TA 0.12 (>3.0%) and CFO 890.1m > Net Income 294.1m (YES >=105%, WARN >=100%) |
Net Debt (3.89b) to EBITDA (1.02b) ratio: 3.81 <= 3.0 (WARN <= 3.5) |
Current Ratio 1.49 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
Outstanding Shares last Quarter (139.8m) change vs 12m ago -3.05% (target <= -2.0% for YES) |
Gross Margin 21.06% (prev 25.40%; Δ -4.34pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
Asset Turnover 87.55% (prev 85.94%; Δ 1.61pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
Interest Coverage Ratio 3.42 (EBITDA TTM 1.02b / Interest Expense TTM 178.5m) >= 6 (WARN >= 3) |
Altman Z'' 3.00
(A) 0.09 = (Total Current Assets 1.87b - Total Current Liabilities 1.26b) / Total Assets 7.24b |
(B) 0.40 = Retained Earnings (Balance) 2.86b / Total Assets 7.24b |
(C) 0.08 = EBIT TTM 610.7m / Avg Total Assets 7.37b |
(D) 0.57 = Book Value of Equity 3.11b / Total Liabilities 5.45b |
Total Rating: 3.00 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 53.52
1. Piotroski 4.50pt = -0.50 |
2. FCF Yield 3.91% = 1.96 |
3. FCF Margin 7.75% = 1.94 |
4. Debt/Equity 2.23 = 0.42 |
5. Debt/Ebitda 3.81 = -2.47 |
6. ROIC - WACC (= 0.40)% = 0.50 |
7. RoE 17.32% = 1.44 |
8. Rev. Trend 52.32% = 3.92 |
9. EPS Trend -73.77% = -3.69 |
What is the price of LW shares?
Over the past week, the price has changed by +1.34%, over one month by +14.39%, over three months by +26.45% and over the past year by -9.08%.
Is Lamb Weston Holdings a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LW is around 59.87 USD . This means that LW is currently overvalued and has a potential downside of -6.69%.
Is LW a buy, sell or hold?
- 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 | 66 | 2.9% |
Analysts Target Price | 66 | 2.9% |
ValueRay Target Price | 65 | 1.4% |
Last update: 2025-10-12 02:01
LW Fundamental Data Overview
P/E Trailing = 30.649
P/E Forward = 25.7732
P/S = 1.3759
P/B = 4.8382
P/EG = 1.2043
Beta = 0.506
Revenue TTM = 6.46b USD
EBIT TTM = 610.7m USD
EBITDA TTM = 1.02b USD
Long Term Debt = 3.67b USD (from longTermDebt, last quarter)
Short Term Debt = 320.7m USD (from shortTermDebt, last quarter)
Debt = 3.99b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.89b USD (from netDebt column, last quarter)
Enterprise Value = 12.78b USD (8.88b + Debt 3.99b - CCE 98.6m)
Interest Coverage Ratio = 3.42 (Ebit TTM 610.7m / Interest Expense TTM 178.5m)
FCF Yield = 3.91% (FCF TTM 500.2m / Enterprise Value 12.78b)
FCF Margin = 7.75% (FCF TTM 500.2m / Revenue TTM 6.46b)
Net Margin = 4.56% (Net Income TTM 294.1m / Revenue TTM 6.46b)
Gross Margin = 21.06% ((Revenue TTM 6.46b - Cost of Revenue TTM 5.10b) / Revenue TTM)
Gross Margin QoQ = 20.64% (prev 19.58%)
Tobins Q-Ratio = 1.77 (Enterprise Value 12.78b / Total Assets 7.24b)
Interest Expense / Debt = 1.09% (Interest Expense 43.7m / Debt 3.99b)
Taxrate = 42.69% (47.9m / 112.2m)
NOPAT = 350.0m (EBIT 610.7m * (1 - 42.69%))
Current Ratio = 1.49 (Total Current Assets 1.87b / Total Current Liabilities 1.26b)
Debt / Equity = 2.23 (Debt 3.99b / totalStockholderEquity, last quarter 1.79b)
Debt / EBITDA = 3.81 (Net Debt 3.89b / EBITDA 1.02b)
Debt / FCF = 7.78 (Net Debt 3.89b / FCF TTM 500.2m)
Total Stockholder Equity = 1.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.06% (Net Income 294.1m / Total Assets 7.24b)
RoE = 17.32% (Net Income TTM 294.1m / Total Stockholder Equity 1.70b)
RoCE = 11.37% (EBIT 610.7m / Capital Employed (Equity 1.70b + L.T.Debt 3.67b))
RoIC = 6.03% (NOPAT 350.0m / Invested Capital 5.81b)
WACC = 5.63% (E(8.88b)/V(12.88b) * Re(7.88%) + D(3.99b)/V(12.88b) * Rd(1.09%) * (1-Tc(0.43)))
Discount Rate = 7.88% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -33.33 | Cagr: -0.69%
[DCF Debug] Terminal Value 70.46% ; FCFE base≈500.2m ; Y1≈328.4m ; Y5≈150.2m
Fair Price DCF = 21.18 (DCF Value 2.95b / Shares Outstanding 139.4m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -73.77 | EPS CAGR: -18.07% | SUE: -0.08 | # QB: 0
Revenue Correlation: 52.32 | Revenue CAGR: 10.01% | SUE: 0.44 | # QB: 0
Additional Sources for LW Stock
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