LAMB WESTON HOLDINGS INC (LW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LW - US5132721045 - Common Stock
59.73 USD
+0.12 (+0.2%)
LW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. LW has only an average score on both its financial health and profitability. LW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LW had positive earnings in the past year.
In the past year LW had a positive cash flow from operations.
Each year in the past 5 years LW has been profitable.
LW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, LW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Equity value of 16.43%, LW belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
LW has a Return On Invested Capital of 9.69%. This is amongst the best in the industry. LW outperforms 85.06% of its industry peers.
LW had an Average Return On Invested Capital over the past 3 years of 11.49%. This is significantly below the industry average of 28.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 16.43% | ||
| ROIC | 9.69% |
ROA(3y)10.05%
ROA(5y)8.51%
ROE(3y)44.21%
ROE(5y)50.9%
ROIC(3y)11.49%
ROIC(5y)10.72%
1.3 Margins
With a decent Profit Margin value of 4.56%, LW is doing good in the industry, outperforming 70.11% of the companies in the same industry.
In the last couple of years the Profit Margin of LW has declined.
Looking at the Operating Margin, with a value of 12.75%, LW belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
LW's Operating Margin has declined in the last couple of years.
The Gross Margin of LW (22.62%) is comparable to the rest of the industry.
LW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.75% | ||
| PM (TTM) | 4.56% | ||
| GM | 22.62% |
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%
2. Health
2.1 Basic Checks
LW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LW has less shares outstanding
The number of shares outstanding for LW has been reduced compared to 5 years ago.
LW has a worse debt/assets ratio than last year.
2.2 Solvency
LW has an Altman-Z score of 2.84. This is not the best score and indicates that LW is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LW (2.84) is better than 65.52% of its industry peers.
The Debt to FCF ratio of LW is 8.08, which is on the high side as it means it would take LW, 8.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.08, LW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LW has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
LW has a Debt to Equity ratio of 2.17. This is amonst the worse of the industry: LW underperforms 87.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.37
WACC7.09%
2.3 Liquidity
A Current Ratio of 1.49 indicates that LW should not have too much problems paying its short term obligations.
LW's Current ratio of 1.49 is in line compared to the rest of the industry. LW outperforms 48.28% of its industry peers.
A Quick Ratio of 0.77 indicates that LW may have some problems paying its short term obligations.
The Quick ratio of LW (0.77) is worse than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
LW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.99%.
The Earnings Per Share has been growing slightly by 6.09% on average over the past years.
The Revenue has been growing slightly by 0.00% in the past year.
The Revenue has been growing by 11.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.99%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%1.37%
Revenue 1Y (TTM)0%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%0.31%
3.2 Future
The Earnings Per Share is expected to grow by 17.25% on average over the next years. This is quite good.
LW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.20% yearly.
EPS Next Y-5.66%
EPS Next 2Y4.54%
EPS Next 3Y7.07%
EPS Next 5Y17.25%
Revenue Next Year2.5%
Revenue Next 2Y1.12%
Revenue Next 3Y1.79%
Revenue Next 5Y3.2%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.72 indicates a rather expensive valuation of LW.
60.92% of the companies in the same industry are more expensive than LW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LW to the average of the S&P500 Index (26.15), we can say LW is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of LW.
Based on the Price/Forward Earnings ratio, LW is valued a bit cheaper than 67.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. LW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
LW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LW is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
The decent profitability rating of LW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.91
EPS Next 2Y4.54%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
LW has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.21, LW pays a bit more dividend than its industry peers.
LW's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of LW grows each year by 11.99%, which is quite nice.
LW has been paying a dividend for over 5 years, so it has already some track record.
LW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.99%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
LW pays out 70.35% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.35%
EPS Next 2Y4.54%
EPS Next 3Y7.07%
NYSE:LW (11/28/2025, 9:59:08 AM)
59.73
+0.12 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners101.08%
Inst Owner Change1.47%
Ins Owners2.27%
Ins Owner Change1.6%
Market Cap8.32B
Revenue(TTM)6.46B
Net Income(TTM)294.10M
Analysts75
Price Target68.08 (13.98%)
Short Float %2.8%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.46
Dividend Growth(5Y)11.99%
DP70.35%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.63%
Min EPS beat(2)29.94%
Max EPS beat(2)33.32%
EPS beat(4)3
Avg EPS beat(4)12.36%
Min EPS beat(4)-36.69%
Max EPS beat(4)33.32%
EPS beat(8)3
Avg EPS beat(8)-1.48%
EPS beat(12)7
Avg EPS beat(12)12.93%
EPS beat(16)11
Avg EPS beat(16)21.16%
Revenue beat(2)1
Avg Revenue beat(2)0.86%
Min Revenue beat(2)-0.58%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.28%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)5
Avg Revenue beat(16)-1.22%
PT rev (1m)2.77%
PT rev (3m)2.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 16.27 | ||
| P/S | 1.29 | ||
| P/FCF | 16.94 | ||
| P/OCF | 9.35 | ||
| P/B | 4.65 | ||
| P/tB | 14.82 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)3.37
EY5.64%
EPS(NY)3.67
Fwd EY6.15%
FCF(TTM)3.53
FCFY5.9%
OCF(TTM)6.39
OCFY10.69%
SpS46.33
BVpS12.84
TBVpS4.03
PEG (NY)N/A
PEG (5Y)2.91
Graham Number31.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 16.43% | ||
| ROCE | 13.77% | ||
| ROIC | 9.69% | ||
| ROICexc | 9.84% | ||
| ROICexgc | 12.33% | ||
| OM | 12.75% | ||
| PM (TTM) | 4.56% | ||
| GM | 22.62% | ||
| FCFM | 7.61% |
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-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 8.08 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 96.73% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 72.04% | ||
| Profit Quality | 167.05% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.84 |
F-Score6
WACC7.09%
ROIC/WACC1.37
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)-18.99%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%1.37%
EPS Next Y-5.66%
EPS Next 2Y4.54%
EPS Next 3Y7.07%
EPS Next 5Y17.25%
Revenue 1Y (TTM)0%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%0.31%
Revenue Next Year2.5%
Revenue Next 2Y1.12%
Revenue Next 3Y1.79%
Revenue Next 5Y3.2%
EBIT growth 1Y-12.85%
EBIT growth 3Y22.59%
EBIT growth 5Y8.17%
EBIT Next Year48.88%
EBIT Next 3Y20.86%
EBIT Next 5Y15.58%
FCF growth 1Y3311.11%
FCF growth 3Y20.72%
FCF growth 5Y-11.68%
OCF growth 1Y-1.56%
OCF growth 3Y27.58%
OCF growth 5Y8.63%
LAMB WESTON HOLDINGS INC / LW 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 for LW stock?
ChartMill assigns a valuation rating of 5 / 10 to LAMB WESTON HOLDINGS INC (LW). This can be considered as Fairly Valued.
Can you provide the profitability details for LAMB WESTON HOLDINGS INC?
LAMB WESTON HOLDINGS INC (LW) has a profitability rating of 6 / 10.
What are the PE and PB ratios of LAMB WESTON HOLDINGS INC (LW) stock?
The Price/Earnings (PE) ratio for LAMB WESTON HOLDINGS INC (LW) is 17.72 and the Price/Book (PB) ratio is 4.65.
How financially healthy is LAMB WESTON HOLDINGS INC?
The financial health rating of LAMB WESTON HOLDINGS INC (LW) is 4 / 10.