LAMB WESTON HOLDINGS INC (LW) Stock Fundamental Analysis
NYSE:LW • US5132721045
47.74 USD
+0.52 (+1.1%)
Last: Feb 24, 2026, 11:10 AM
LW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the Food Products industry. LW has an average financial health and profitability rating. 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.
- 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 79.55% 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 94.32% of the companies in the same industry.
- LW has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. LW outperforms 86.36% 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 28.12%.
| 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
- LW's Profit Margin of 6.06% is fine compared to the rest of the industry. LW outperforms 78.41% of its industry peers.
- LW's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 12.42%, LW belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
- LW's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 22.11%, LW perfoms like the industry average, outperforming 53.41% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LW is still creating some value.
- LW has less shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 2.60 indicates that LW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LW's Altman-Z score of 2.60 is fine compared to the rest of the industry. LW outperforms 62.50% 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 better Debt to FCF ratio (6.05) than 69.32% 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.
- With a Debt to Equity ratio value of 2.19, LW is not doing good in the industry: 82.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.39
WACC6.89%
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.
- LW has a Current ratio (1.43) which is comparable to the rest of the industry.
- 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's Quick ratio of 0.64 is on the low side compared to the rest of the industry. LW is outperformed by 65.91% 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.
- Looking at the last year, LW shows a small growth in Revenue. The Revenue has grown by 2.35% in the last year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.04 indicates a correct valuation of LW.
- Based on the Price/Earnings ratio, LW is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.64. LW is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.25, LW is valued correctly.
- LW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LW is cheaper than 71.59% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, LW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 15.25 |
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 70.45% of the companies listed 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 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
- The decent profitability rating of LW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y-3.49%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
- LW has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of LW has falen by -20.05%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- LW's Dividend Yield is a higher than the industry average which is at 2.27.
- LW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
- The dividend of LW is nicely growing with an annual growth rate of 11.99%!
- 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
- LW pays out 52.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
- LW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.74%
EPS Next 2Y-3.49%
EPS Next 3Y2.87%
NYSE:LW (2/24/2026, 11:10:38 AM)
47.74
+0.52 (+1.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)12-19 2025-12-19/bmo
Earnings (Next)04-01 2026-04-01/bmo
Inst Owners91.91%
Inst Owner Change6.64%
Ins Owners2.31%
Ins Owner Change7.51%
Market Cap6.63B
Revenue(TTM)6.47B
Net Income(TTM)392.30M
Analysts76
Price Target55.83 (16.95%)
Short Float %5.41%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.46
Dividend Growth(5Y)11.99%
DP52.74%
Div Incr Years7
Div Non Decr Years7
Ex-Date01-30 2026-01-30 (0.38)
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)-17.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 15.25 | ||
| P/S | 1.02 | ||
| P/FCF | 10.23 | ||
| P/OCF | 6.84 | ||
| P/B | 3.78 | ||
| P/tB | 12.19 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)3.4
EY7.12%
EPS(NY)3.13
Fwd EY6.56%
FCF(TTM)4.67
FCFY9.78%
OCF(TTM)6.98
OCFY14.62%
SpS46.61
BVpS12.63
TBVpS3.92
PEG (NY)N/A
PEG (5Y)2.31
Graham Number31.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.6 |
F-Score7
WACC6.89%
ROIC/WACC1.39
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)0.89%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%4.55%
EPS Next Y-16.38%
EPS Next 2Y-3.49%
EPS Next 3Y2.87%
EPS Next 5Y16.96%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%1.07%
Revenue Next Year2.64%
Revenue Next 2Y0.74%
Revenue Next 3Y1.47%
Revenue Next 5Y2.91%
EBIT growth 1Y-2.9%
EBIT growth 3Y22.59%
EBIT growth 5Y8.17%
EBIT Next Year45.31%
EBIT Next 3Y17.48%
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 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.
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.