LAMB WESTON HOLDINGS INC (LW) Fundamental Analysis & Valuation

NYSE:LW • US5132721045

Current stock price

39.35 USD
+0.87 (+2.26%)
At close:
39.35 USD
0 (0%)
After Hours:

This LW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. LW Profitability Analysis

1.1 Basic Checks

  • LW had positive earnings in the past year.
  • LW had a positive operating cash flow in the past year.
  • LW had positive earnings in each of the past 5 years.
  • LW had a positive operating cash flow in each of the past 5 years.
LW Yearly Net Income VS EBIT VS OCF VS FCFLW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • With a decent Return On Assets value of 5.35%, LW is doing good in the industry, outperforming 74.71% of the companies in the same industry.
  • LW has a better Return On Equity (22.36%) than 95.40% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.58%, LW belongs to the top of the industry, outperforming 87.36% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LW is above the industry average of 7.23%.
Industry RankSector Rank
ROA 5.35%
ROE 22.36%
ROIC 9.58%
ROA(3y)10.05%
ROA(5y)8.51%
ROE(3y)44.21%
ROE(5y)50.9%
ROIC(3y)11.49%
ROIC(5y)10.72%
LW Yearly ROA, ROE, ROICLW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2K -4K -6K -8K -10K

1.3 Margins

  • LW has a better Profit Margin (6.06%) than 77.01% of its industry peers.
  • LW's Profit Margin has declined in the last couple of years.
  • LW has a Operating Margin of 12.42%. This is amongst the best in the industry. LW outperforms 83.91% of its industry peers.
  • In the last couple of years the Operating Margin of LW has declined.
  • LW has a Gross Margin (22.11%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of LW has remained more or less at the same level.
Industry RankSector Rank
OM 12.42%
PM (TTM) 6.06%
GM 22.11%
OM growth 3Y5.39%
OM growth 5Y-2.73%
PM growth 3Y4.15%
PM growth 5Y-10.51%
GM growth 3Y4.02%
GM growth 5Y-0.65%
LW Yearly Profit, Operating, Gross MarginsLW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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4

2. LW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LW is creating some value.
  • Compared to 1 year ago, LW has less shares outstanding
  • LW has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, LW has a worse debt to assets ratio.
LW Yearly Shares OutstandingLW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
LW Yearly Total Debt VS Total AssetsLW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 2.48 indicates that LW is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • LW has a Altman-Z score of 2.48. This is in the better half of the industry: LW outperforms 63.22% of its industry peers.
  • The Debt to FCF ratio of LW is 6.05, which is on the high side as it means it would take LW, 6.05 years of fcf income to pay off all of its debts.
  • LW's Debt to FCF ratio of 6.05 is fine compared to the rest of the industry. LW outperforms 66.67% of its industry peers.
  • LW has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of LW (2.19) is worse than 82.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 6.05
Altman-Z 2.48
ROIC/WACC1.32
WACC7.25%
LW Yearly LT Debt VS Equity VS FCFLW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.43 indicates that LW should not have too much problems paying its short term obligations.
  • LW has a Current ratio of 1.43. This is comparable to the rest of the industry: LW outperforms 48.28% of its industry peers.
  • LW has a Quick Ratio of 1.43. This is a bad value and indicates that LW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • LW has a Quick ratio of 0.64. This is in the lower half of the industry: LW underperforms 71.26% of its industry peers.
Industry RankSector Rank
Current Ratio 1.43
Quick Ratio 0.64
LW Yearly Current Assets VS Current LiabilitesLW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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4

3. LW Growth Analysis

3.1 Past

  • LW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.65%.
  • Measured over the past 5 years, LW shows a small growth in Earnings Per Share. The EPS has been growing by 6.09% on average per year.
  • The Revenue has decreased by -0.25% in the past year.
  • Measured over the past years, LW shows a quite strong growth in Revenue. The Revenue has been growing by 11.21% on average per year.
EPS 1Y (TTM)-7.65%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%-34.55%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%2.91%

3.2 Future

  • LW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.96% yearly.
  • The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-16.1%
EPS Next 2Y-3.75%
EPS Next 3Y2.5%
EPS Next 5Y16.96%
Revenue Next Year2.75%
Revenue Next 2Y0.34%
Revenue Next 3Y1.17%
Revenue Next 5Y2.91%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LW Yearly Revenue VS EstimatesLW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
LW Yearly EPS VS EstimatesLW Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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5

4. LW Valuation Analysis

4.1 Price/Earnings Ratio

  • LW is valuated correctly with a Price/Earnings ratio of 13.03.
  • 70.11% of the companies in the same industry are more expensive than LW, based on the Price/Earnings ratio.
  • LW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of LW.
  • LW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LW is cheaper than 77.01% of the companies in the same industry.
  • LW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 13.03
Fwd PE 12.64
LW Price Earnings VS Forward Price EarningsLW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 74.71% of the companies listed in the same industry.
  • 88.51% of the companies in the same industry are more expensive than LW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.43
EV/EBITDA 7.65
LW Per share dataLW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The decent profitability rating of LW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y-3.75%
EPS Next 3Y2.5%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. LW Dividend Analysis

5.1 Amount

  • LW has a Yearly Dividend Yield of 3.65%.
  • Compared to an average industry Dividend Yield of 2.44, LW pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.88, LW pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.65%

5.2 History

  • The dividend of LW is nicely growing with an annual growth rate of 11.99%!
  • LW has paid a dividend for at least 10 years, which is a reliable track record.
  • As LW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.99%
Div Incr Years7
Div Non Decr Years7
LW Yearly Dividends per shareLW Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

5.3 Sustainability

  • 52.74% of the earnings are spent on dividend by LW. This is a bit on the high side, but may be sustainable.
  • The dividend of LW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.74%
EPS Next 2Y-3.75%
EPS Next 3Y2.5%
LW Yearly Income VS Free CF VS DividendLW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
LW Dividend Payout.LW Dividend Payout, showing the Payout Ratio.LW Dividend Payout.PayoutRetained Earnings

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LW Fundamentals: All Metrics, Ratios and Statistics

LAMB WESTON HOLDINGS INC

NYSE:LW (4/2/2026, 8:04:00 PM)

After market: 39.35 0 (0%)

39.35

+0.87 (+2.26%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)04-01
Earnings (Next)07-21
Inst Owners92.43%
Inst Owner Change6.89%
Ins Owners2.8%
Ins Owner Change7.51%
Market Cap5.46B
Revenue(TTM)6.45B
Net Income(TTM)392.30M
Analysts76
Price Target55.6 (41.3%)
Short Float %5.59%
Short Ratio2.28
Dividend
Industry RankSector Rank
Dividend Yield 3.65%
Yearly Dividend1.46
Dividend Growth(5Y)11.99%
DP52.74%
Div Incr Years7
Div Non Decr Years7
Ex-Date05-08
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.49%
Min EPS beat(2)3.04%
Max EPS beat(2)29.94%
EPS beat(4)4
Avg EPS beat(4)22.3%
Min EPS beat(4)3.04%
Max EPS beat(4)33.32%
EPS beat(8)4
Avg EPS beat(8)-1.07%
EPS beat(12)7
Avg EPS beat(12)7.58%
EPS beat(16)11
Avg EPS beat(16)18.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.97%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)0%
PT rev (3m)-13.99%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-23.07%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 13.03
Fwd PE 12.64
P/S 0.84
P/FCF 8.43
P/OCF 5.64
P/B 3.11
P/tB 10.05
EV/EBITDA 7.65
EPS(TTM)3.02
EY7.67%
EPS(NY)3.11
Fwd EY7.91%
FCF(TTM)4.67
FCFY11.86%
OCF(TTM)6.98
OCFY17.74%
SpS46.61
BVpS12.63
TBVpS3.92
PEG (NY)N/A
PEG (5Y)2.14
Graham Number29.3
Profitability
Industry RankSector Rank
ROA 5.35%
ROE 22.36%
ROCE 13.56%
ROIC 9.58%
ROICexc 9.71%
ROICexgc 12.15%
OM 12.42%
PM (TTM) 6.06%
GM 22.11%
FCFM 10.01%
ROA(3y)10.05%
ROA(5y)8.51%
ROE(3y)44.21%
ROE(5y)50.9%
ROIC(3y)11.49%
ROIC(5y)10.72%
ROICexc(3y)11.82%
ROICexc(5y)11.8%
ROICexgc(3y)14.91%
ROICexgc(5y)14.34%
ROCE(3y)16.55%
ROCE(5y)15.18%
ROICexgc growth 3Y-1.96%
ROICexgc growth 5Y-6.41%
ROICexc growth 3Y-4.75%
ROICexc growth 5Y-7.96%
OM growth 3Y5.39%
OM growth 5Y-2.73%
PM growth 3Y4.15%
PM growth 5Y-10.51%
GM growth 3Y4.02%
GM growth 5Y-0.65%
F-Score7
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 6.05
Debt/EBITDA 3.22
Cap/Depr 82.78%
Cap/Sales 4.96%
Interest Coverage 3.76
Cash Conversion 81.32%
Profit Quality 165.23%
Current Ratio 1.43
Quick Ratio 0.64
Altman-Z 2.48
F-Score7
WACC7.25%
ROIC/WACC1.32
Cap/Depr(3y)272.82%
Cap/Depr(5y)212.89%
Cap/Sales(3y)13.17%
Cap/Sales(5y)10.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.65%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%-34.55%
EPS Next Y-16.1%
EPS Next 2Y-3.75%
EPS Next 3Y2.5%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%2.91%
Revenue Next Year2.75%
Revenue Next 2Y0.34%
Revenue Next 3Y1.17%
Revenue Next 5Y2.91%
EBIT growth 1Y-2.9%
EBIT growth 3Y22.59%
EBIT growth 5Y8.17%
EBIT Next Year45.44%
EBIT Next 3Y17.05%
EBIT Next 5Y12.9%
FCF growth 1Y727.49%
FCF growth 3Y20.72%
FCF growth 5Y-11.68%
OCF growth 1Y4.36%
OCF growth 3Y27.58%
OCF growth 5Y8.63%

LAMB WESTON HOLDINGS INC / LW Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for LAMB WESTON HOLDINGS INC?

ChartMill assigns a fundamental rating of 5 / 10 to LW.


What is the valuation status of LAMB WESTON HOLDINGS INC (LW) stock?

ChartMill assigns a valuation rating of 5 / 10 to LAMB WESTON HOLDINGS INC (LW). This can be considered as Fairly Valued.


What is the profitability of LW stock?

LAMB WESTON HOLDINGS INC (LW) has a profitability rating of 7 / 10.


What is the valuation of LAMB WESTON HOLDINGS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for LAMB WESTON HOLDINGS INC (LW) is 13.03 and the Price/Book (PB) ratio is 3.11.


What is the expected EPS growth for LAMB WESTON HOLDINGS INC (LW) stock?

The Earnings per Share (EPS) of LAMB WESTON HOLDINGS INC (LW) is expected to decline by -16.1% in the next year.