LW Stock Analysis: Lamb Weston Holdings | NYSE
Packaged Foods | NYSE, USA | Market Cap: 6.815m USD | 12M Return: -18.9% | US5132721045 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 102M
EPS Trend: -89.6%
Qual. Beats: 0
Rev. Trend: 60.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 9.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products across the United States, Canada, Mexico, and international markets. Incorporated in 1950 and headquartered in Eagle, Idaho, the company sells its products under owned or licensed brands-including Lamb Weston, Grown in Idaho, and Alexia-as well as under customer and retailer private labels.
The company reaches customers through a hybrid sales model that combines internal sales personnel with independent brokers, agents, and distributors. Its customer base spans quick-service and full-service restaurant chains, wholesale and grocery channels, mass merchants, club retailers, non-commercial and institutional foodservice, and specialty retailers. As a supplier deeply embedded in global foodservice, Lamb Westons volumes are closely tied to quick-service restaurant demand for value-added potato products such as french fries.
Listed on the NYSE under the ticker LW, the company operates within the Consumer Staples sector (Packaged Foods & Meats sub-industry), a relatively concentrated category in which a small number of suppliers account for the majority of global frozen potato production.
- Global QSR traffic recovery drives frozen potato volume growth
- Potato and oil input costs pressure gross margins
- EMEA and Asia expansion lifts international segment revenue
| Net Income: 254.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 1.40 > 1.0 |
| NWC/Revenue: 9.67% < 20% (prev 9.53%; Δ 0.15% < -1%) |
| CFO/TA 0.15 > 3% & CFO 1.09b > Net Income 254.8m |
| Net Debt (3.79b) to EBITDA (913.5m): 4.15 < 3 |
| Current Ratio: 1.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.1m) vs 12m ago -1.22% < -2% |
| Gross Margin: 19.38% > 18% (prev 21.45%; Δ -2.07% > 0.5%) |
| Asset Turnover: 90.98% > 50% (prev 89.22%; Δ 1.76% > 0%) |
| Interest Coverage Ratio: 2.88 > 6 (EBIT TTM 516.8m / Interest Expense TTM 179.2m) |
| A: 0.09 (Total Current Assets 2.05b - Total Current Liabilities 1.41b) / Total Assets 7.32b |
| B: 0.40 (Retained Earnings 2.90b / Total Assets 7.32b) |
| C: 0.07 (EBIT TTM 516.8m / Avg Total Assets 7.28b) |
| D: 0.33 (Book Value of Equity 1.81b / Total Liabilities 5.52b) |
| Altman-Z'' = 2.69 = A |
| DSRI: 0.99 (Receivables 787.7m/772.7m, Revenue 6.62b/6.46b) |
| GMI: 1.11 (GM 21.45% / 19.38%) |
| AQI: 1.00 (AQ_t 0.21 / AQ_t-1 0.21) |
| SGI: 1.03 (Revenue 6.62b / 6.46b) |
| TATA: -0.11 (NI 254.8m - CFO 1.09b) / TA 7.32b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 13, 2026, the stock is trading at USD 50.18 with a total of 3,261,285 shares traded. Over the past week, the price has changed by +12.59%, over one month by +3.98%, over three months by +7.60% and over the past year by -18.93%.
Current recommended Stop Loss: 45.60 (which is 9.1% or 2.4 ATR below the current price).
Lamb Weston Holdings has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold LW.
- StrongBuy: 2
- Buy: 2
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 56.1 | 11.8% |
P/E Trailing = 27.0273
P/E Forward = 14.6628
P/S = 1.0289
P/B = 3.3932
P/EG = 0.7372
Revenue TTM = 6.62b USD
EBIT TTM = 516.8m USD
EBITDA TTM = 913.5m USD
Long Term Debt = 3.60b USD (from longTermDebt, last fiscal year)
Short Term Debt = 350.1m USD (from shortTermDebt, last quarter)
Debt = 3.96b USD (from shortLongTermDebtTotal, last quarter) + Leases 27.7m
Net Debt = 3.79b USD (calculated: Debt 3.96b - CCE 166.3m)
Enterprise Value = 10.6b USD (6.81b + Debt 3.96b - CCE 166.3m)
Interest Coverage Ratio = 2.88 (Ebit TTM 516.8m / Interest Expense TTM 179.2m)
EV/FCF = 17.42x (Enterprise Value 10.6b / FCF TTM 608.6m)
FCF Yield = 5.74% (FCF TTM 608.6m / Enterprise Value 10.6b)
FCF Margin = 9.19% (FCF TTM 608.6m / Revenue TTM 6.62b)
Net Margin = 3.85% (Net Income TTM 254.8m / Revenue TTM 6.62b)
Gross Margin = 19.38% ((Revenue TTM 6.62b - Cost of Revenue TTM 5.34b) / Revenue TTM)
Gross Margin QoQ = 15.96% (prev 20.42%)
Tobins Q-Ratio = 1.45 (Enterprise Value 10.6b / Total Assets 7.32b)
Interest Expense / Debt = 4.53% (Interest Expense 179.2m / Debt 3.96b)
Taxrate = 27.85% (94.9m / 340.8m)
NOPAT = 372.9m (EBIT 516.8m * (1 - 27.85%))
Current Ratio = 1.45 (Total Current Assets 2.05b / Total Current Liabilities 1.41b)
Debt / Equity = 2.19 (Debt 3.96b / totalStockholderEquity, last quarter 1.81b)
Debt / EBITDA = 4.15 (Net Debt 3.79b / EBITDA 913.5m)
Debt / FCF = 6.23 (Net Debt 3.79b / FCF TTM 608.6m)
Total Stockholder Equity = 1.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.50% (Net Income 254.8m / Total Assets 7.32b)
RoE = 14.13% (Net Income TTM 254.8m / Total Stockholder Equity 1.80b)
RoCE = 9.57% (EBIT 516.8m / Capital Employed (Equity 1.80b + L.T.Debt 3.60b))
RoIC = 6.11% (NOPAT 372.9m / Invested Capital 6.10b)
WACC = 4.87% (E(6.81b)/V(10.8b) * Re(5.80%) + D(3.96b)/V(10.8b) * Rd(4.53%) * (1-Tc(0.28)))
Discount Rate = 5.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.40 | Cagr: -2.14%
[DCF] Terminal Value 77.97% ; FCFF base≈565.2m ; Y1≈648.0m ; Y5≈953.6m
[DCF] Fair Price = 76.65 (EV 14.4b - Net Debt 3.79b = Equity 10.6b / Shares 137.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -89.59 | EPS CAGR: -21.16% | SUE: 0.80 | # QB: 0
Revenue Correlation: 60.55 | Revenue CAGR: 0.98% | SUE: 0.26 | # QB: 0
EPS current Quarter (2026-11-30): EPS=0.86 | Chg30d=+11.86% | Revisions=+44% | Analysts=10
EPS next Quarter (2027-02-28): EPS=0.86 | Chg30d=-3.28% | Revisions=-22% | Analysts=9
EPS current Year (2027-05-31): EPS=3.22 | Chg30d=+6.21% | Revisions=-25% | GrowthEPS=+7.0% | GrowthRev=-0.0%
EPS next Year (2028-05-31): EPS=3.53 | Chg30d=+4.68% | Revisions=-25% | GrowthEPS=+9.7% | GrowthRev=+2.1%
[Analyst] Revisions Ratio: +0% (up=7, down=7)