(LW) Lamb Weston Holdings - Overview
Sector: Consumer Defensive | Industry: Packaged Foods | Exchange: NYSE (USA) | Market Cap: 5.825m USD | Total Return: -15.3% in 12m
Avg Turnover: 63.1M
EPS Trend: -87.9%
Qual. Beats: 0
Rev. Trend: 65.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Shakeout
Lamb Weston Holdings, Inc. is a global producer and distributor of frozen potato products, commercial ingredients, and appetizers. Headquartered in Eagle, Idaho, the company supports a diverse brand portfolio including Lamb Weston, Alexia, and Grown in Idaho, while also manufacturing private-label products for major retailers. Its distribution network spans quick-service restaurants, grocery chains, and foodservice institutions across North America and international markets.
The company operates within the consumer staples sector, where business stability is often driven by long-term contracts with global fast-food chains. As a leader in the frozen potato market, Lamb Weston’s business model relies on large-scale processing facilities and specialized cold-chain logistics to manage perishable inventory. Investors can further analyze these operational metrics and valuation trends on ValueRay.
- Quick service restaurant traffic fluctuations impact global frozen potato product demand
- Input cost volatility for raw potatoes and energy affects gross margins
- ERP system integration challenges disrupt supply chain and order fulfillment efficiency
- Global manufacturing capacity expansion determines long-term market share growth potential
- Consumer shift toward value menus pressures pricing power in North American markets
| Net Income: 300.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 7.43 > 1.0 |
| NWC/Revenue: 9.98% < 20% (prev 8.99%; Δ 0.99% < -1%) |
| CFO/TA 0.13 > 3% & CFO 978.6m > Net Income 300.3m |
| Net Debt (3.96b) to EBITDA (994.2m): 3.99 < 3 |
| Current Ratio: 1.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (139.3m) vs 12m ago -2.18% < -2% |
| Gross Margin: 20.57% > 18% (prev 0.23%; Δ 2.03k% > 0.5%) |
| Asset Turnover: 87.98% > 50% (prev 86.05%; Δ 1.93% > 0%) |
| Interest Coverage Ratio: 3.43 > 6 (EBITDA TTM 994.2m / Interest Expense TTM 177.2m) |
| A: 0.09 (Total Current Assets 2.06b - Total Current Liabilities 1.41b) / Total Assets 7.39b |
| B: 0.39 (Retained Earnings 2.87b / Total Assets 7.39b) |
| C: 0.08 (EBIT TTM 608.1m / Avg Total Assets 7.41b) |
| D: 0.57 (Book Value of Equity 3.17b / Total Liabilities 5.57b) |
| Altman-Z'' = 2.99 = A |
| DSRI: 1.03 (Receivables 750.5m/716.6m, Revenue 6.52b/6.39b) |
| GMI: 1.10 (GM 20.57% / 22.61%) |
| AQI: 1.08 (AQ_t 0.21 / AQ_t-1 0.20) |
| SGI: 1.02 (Revenue 6.52b / 6.39b) |
| TATA: -0.09 (NI 300.3m - CFO 978.6m) / TA 7.39b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 43.76 with a total of 1,300,000 shares traded.
Over the past week, the price has changed by -0.68%,
over one month by +1.92%,
over three months by -6.22% and
over the past year by -15.25%.
Lamb Weston Holdings has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold LW.
- StrongBuy: 2
- Buy: 3
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 46.4 | 5.9% |
P/E Trailing = 19.8075
P/E Forward = 12.5628
P/S = 0.8937
P/B = 3.1883
P/EG = 0.9585
Revenue TTM = 6.52b USD
EBIT TTM = 608.1m USD
EBITDA TTM = 994.2m USD
Long Term Debt = 3.64b USD (from longTermDebt, last quarter)
Short Term Debt = 349.8m USD (from shortTermDebt, last quarter)
Debt = 4.02b USD (from shortLongTermDebtTotal, last quarter) + Leases 28.1m
Net Debt = 3.96b USD (calculated: Debt 4.02b - CCE 57.5m)
Enterprise Value = 9.79b USD (5.83b + Debt 4.02b - CCE 57.5m)
Interest Coverage Ratio = 3.43 (Ebit TTM 608.1m / Interest Expense TTM 177.2m)
EV/FCF = 15.43x (Enterprise Value 9.79b / FCF TTM 634.3m)
FCF Yield = 6.48% (FCF TTM 634.3m / Enterprise Value 9.79b)
FCF Margin = 9.73% (FCF TTM 634.3m / Revenue TTM 6.52b)
Net Margin = 4.61% (Net Income TTM 300.3m / Revenue TTM 6.52b)
Gross Margin = 20.57% ((Revenue TTM 6.52b - Cost of Revenue TTM 5.18b) / Revenue TTM)
Gross Margin QoQ = 21.19% (prev 20.04%)
Tobins Q-Ratio = 1.32 (Enterprise Value 9.79b / Total Assets 7.39b)
Interest Expense / Debt = 4.41% (Interest Expense 177.2m / Debt 4.02b)
Taxrate = 37.13% (30.3m / 81.6m)
NOPAT = 382.3m (EBIT 608.1m * (1 - 37.13%))
Current Ratio = 1.46 (Total Current Assets 2.06b / Total Current Liabilities 1.41b)
Debt / Equity = 2.20 (Debt 4.02b / totalStockholderEquity, last quarter 1.83b)
Debt / EBITDA = 3.99 (Net Debt 3.96b / EBITDA 994.2m)
Debt / FCF = 6.25 (Net Debt 3.96b / FCF TTM 634.3m)
Total Stockholder Equity = 1.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.05% (Net Income 300.3m / Total Assets 7.39b)
RoE = 16.90% (Net Income TTM 300.3m / Total Stockholder Equity 1.78b)
RoCE = 11.22% (EBIT 608.1m / Capital Employed (Equity 1.78b + L.T.Debt 3.64b))
RoIC = 6.09% (NOPAT 382.3m / Invested Capital 6.28b)
WACC = 5.66% (E(5.83b)/V(9.85b) * Re(7.65%) + D(4.02b)/V(9.85b) * Rd(4.41%) * (1-Tc(0.37)))
Discount Rate = 7.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -1.92%
[DCF] Terminal Value 77.97% ; FCFF base≈414.8m ; Y1≈475.5m ; Y5≈699.8m
[DCF] Fair Price = 47.56 (EV 10.5b - Net Debt 3.96b = Equity 6.57b / Shares 138.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -87.93 | EPS CAGR: -21.10% | SUE: 0.34 | # QB: 0
Revenue Correlation: 65.08 | Revenue CAGR: 4.30% | SUE: 0.79 | # QB: 0
EPS next Quarter (2026-08-31): EPS=0.62 | Chg30d=-5.92% | Revisions=-11% | Analysts=5
EPS current Year (2026-05-31): EPS=2.81 | Chg30d=+4.54% | Revisions=+54% | GrowthEPS=-16.0% | GrowthRev=+1.2%
EPS next Year (2027-05-31): EPS=3.00 | Chg30d=-1.70% | Revisions=-29% | GrowthEPS=+6.5% | GrowthRev=-2.5%
[Analyst] Revisions Ratio: +54%