LAMB WESTON HOLDINGS INC (LW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LW • US5132721045
45.08 USD
-0.5 (-1.1%)
Last: Jan 30, 2026, 01:35 PM
We assign a fundamental rating of 5 out of 10 to LW. LW was compared to 87 industry peers in the Food Products industry. LW has an average financial health and profitability rating. LW is not valued too expensively and it also shows a decent growth rate. LW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year LW was profitable.
- LW had a positive operating cash flow in the past year.
- In the past 5 years LW has always been profitable.
- In the past 5 years LW always reported a positive cash flow from operatings.
1.2 Ratios
- LW's Return On Assets of 5.35% is fine compared to the rest of the industry. LW outperforms 79.31% of its industry peers.
- Looking at the Return On Equity, with a value of 22.36%, LW belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
- The Return On Invested Capital of LW (9.58%) is better than 86.21% 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 27.79%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 6.06%, LW is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
- LW's Profit Margin has declined in the last couple of years.
- LW has a better Operating Margin (12.42%) than 82.76% of its industry peers.
- LW's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 22.11%, LW is in line with its industry, outperforming 52.87% of the companies in the same industry.
- LW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LW is creating some value.
- LW has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LW has less shares outstanding
- Compared to 1 year ago, LW has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.58 indicates that LW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LW has a better Altman-Z score (2.58) than 62.07% 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.
- Looking at the Debt to FCF ratio, with a value of 6.05, LW is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
- A Debt/Equity ratio of 2.19 is on the high side and indicates that LW has dependencies on debt financing.
- LW's Debt to Equity ratio of 2.19 is on the low side compared to the rest of the industry. LW is outperformed by 85.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.37
WACC6.97%
2.3 Liquidity
- LW has a Current Ratio of 1.43. This is a normal value and indicates that LW is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.43, LW is in line with its industry, outperforming 42.53% of the companies in the same industry.
- A Quick Ratio of 0.64 indicates that LW may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.64, LW is doing worse than 67.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.89% over the past year.
- LW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.09% yearly.
- LW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.35%.
- The Revenue has been growing by 11.21% on average over the past years. This is quite good.
EPS 1Y (TTM)0.89%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%4.55%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%1.07%
3.2 Future
- Based on estimates for the next years, LW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.96% on average per year.
- The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-16.38%
EPS Next 2Y-3.49%
EPS Next 3Y2.87%
EPS Next 5Y16.96%
Revenue Next Year2.64%
Revenue Next 2Y0.74%
Revenue Next 3Y1.47%
Revenue Next 5Y2.91%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- LW is valuated correctly with a Price/Earnings ratio of 13.26.
- Compared to the rest of the industry, the Price/Earnings ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 72.41% of the companies listed in the same industry.
- LW is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.40 indicates a correct valuation of LW.
- Based on the Price/Forward Earnings ratio, LW is valued a bit cheaper than 72.41% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LW to the average of the S&P500 Index (25.72), we can say LW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
- LW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LW is cheaper than 66.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LW indicates a rather cheap valuation: LW is cheaper than 87.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
- LW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y-3.49%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.45%, LW has a reasonable but not impressive dividend return.
- The stock price of LW dropped by -25.55% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- LW's Dividend Yield is a higher than the industry average which is at 2.29.
- LW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
- On average, the dividend of LW grows each year by 11.99%, which is quite nice.
- 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
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-3.49%
EPS Next 3Y2.87%
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 of LAMB WESTON HOLDINGS INC (LW) stock?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the financial health for LW stock?
The financial health rating of LAMB WESTON HOLDINGS INC (LW) is 4 / 10.
Can you provide the expected EPS growth for LW stock?
The Earnings per Share (EPS) of LAMB WESTON HOLDINGS INC (LW) is expected to decline by -16.38% in the next year.