LAMB WESTON HOLDINGS INC (LW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LW • US5132721045
45.93 USD
-0.03 (-0.07%)
At close: Jan 30, 2026
45.72 USD
-0.21 (-0.46%)
After Hours: 1/30/2026, 8:04:00 PM
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. Finally LW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- LW had positive earnings in the past year.
- LW had a positive operating cash flow in the past year.
- In the past 5 years LW has always been profitable.
- Each year in the past 5 years LW had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 5.35%, LW is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- LW has a better Return On Equity (22.36%) than 94.25% of its industry peers.
- LW has a better Return On Invested Capital (9.58%) than 86.21% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LW 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
- With a decent Profit Margin value of 6.06%, LW is doing good in the industry, outperforming 77.01% of the companies in the same industry.
- In the last couple of years the Profit Margin of LW has declined.
- LW has a Operating Margin of 12.42%. This is amongst the best in the industry. LW outperforms 82.76% of its industry peers.
- LW's Operating Margin has declined in the last couple of years.
- LW has a Gross Margin of 22.11%. This is comparable to the rest of the industry: LW outperforms 52.87% of its industry peers.
- 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
- LW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- The debt/assets ratio for LW is higher compared to a year ago.
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.
- LW has a Debt to FCF ratio of 6.05. This is in the better half of the industry: LW outperforms 70.11% 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.
- LW has a Debt to Equity ratio of 2.19. This is amonst the worse of the industry: LW underperforms 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
- 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 42.53% of its industry peers.
- A Quick Ratio of 0.64 indicates that LW may have some problems paying its short term obligations.
- LW's Quick ratio of 0.64 is on the low side compared to the rest of the industry. LW is outperformed by 67.82% of its industry peers.
| 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.
- 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.
- 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.
- Based on estimates for the next years, LW will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
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
- A Price/Earnings ratio of 13.51 indicates a correct valuation of LW.
- LW's Price/Earnings ratio is a bit cheaper when compared to the industry. LW is cheaper than 72.41% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. LW is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 14.67, the valuation of LW can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 72.41% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. LW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LW is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LW is valued cheaper than 87.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| 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)2.22
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.
- In the last 3 months the price of LW has falen by -25.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.29, LW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, LW pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable 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
- 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.