DB:0L5

Stock Analysis Report

Executive Summary

Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Lamb Weston Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

0L5

-1.2%

DE Food

1.4%

DE Market


1 Year Return

4.4%

0L5

-7.1%

DE Food

3.7%

DE Market

Return vs Industry: 0L5 exceeded the German Food industry which returned -7.1% over the past year.

Return vs Market: 0L5 matched the German Market which returned 3.7% over the past year.


Shareholder returns

0L5IndustryMarket
7 Day-1.4%-1.2%1.4%
30 Day3.8%-7.5%1.3%
90 Day14.7%-5.6%3.4%
1 Year5.6%4.4%-5.6%-7.1%7.0%3.7%
3 Yearn/a-22.8%-27.6%18.5%8.3%
5 Yearn/a32.8%21.2%42.2%22.9%

Price Volatility Vs. Market

How volatile is Lamb Weston Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lamb Weston Holdings undervalued compared to its fair value and its price relative to the market?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 0L5 (€69) is trading below our estimate of fair value (€82.63)

Significantly Undervalued: 0L5 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0L5 is poor value based on its PE Ratio (23.6x) compared to the Food industry average (22x).

PE vs Market: 0L5 is poor value based on its PE Ratio (23.6x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 0L5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0L5 is overvalued based on its PB Ratio (121.8x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Lamb Weston Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 0L5's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 0L5's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0L5's revenue (3.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 0L5's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 0L5's Return on Equity is forecast to be very high in 3 years time (123.1%).


Next Steps

Past Performance

How has Lamb Weston Holdings performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 0L5's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: 0L5's earnings growth over the past year (8.8%) is below its 5-year average (15.6% per year).

Earnings vs Industry: 0L5 earnings growth over the past year (8.8%) underperformed the Food industry 14.4%.


Return on Equity

High ROE: Whilst 0L5's Return on Equity (532.5%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 0L5 has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: 0L5 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Lamb Weston Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 0L5's short term assets ($906.2M) exceeds its short term liabilities ($540.1M)

Long Term Liabilities: 0L5's short term assets (906.2M) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: 0L5's debt to equity ratio (2418.9%) is considered high

Reducing Debt: 0L5's debt to equity ratio has increased from 9.6% to 2418.9% over the past 5 years.

Debt Coverage: 0L5's debt is well covered by operating cash flow (31%).

Interest Coverage: 0L5's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: 0L5 has a high level of physical assets or inventory.

Debt Coverage by Assets: 0L5's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Lamb Weston Holdings's current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Lamb Weston Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 0L5's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 0L5's dividend (1.04%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: Whilst dividend payments have been stable, 0L5 has been paying a dividend for less than 10 years.

Growing Dividend: 0L5's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), 0L5's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0L5's dividends in 3 years are forecast to be well covered by earnings (24.1% payout ratio).


Next Steps

Management

What is the CEO of Lamb Weston Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Tom Werner (53yo)

2.9yrs

Tenure

US$6,837,282

Compensation

Mr. Thomas P. Werner, also known as Tom, has been the Chief Executive Officer and President of Lamb Weston Holdings Inc. since November 2016. Mr. Werner served as the President of Commercial Foods at Conag ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Tom's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 0L5's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 0L5's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Eryk Spytek (51yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$1.67m
  • Rob McNutt (59yo)

    Senior VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.27m
  • Bernadette Madarieta (43yo)

    VP & Controller

    • Tenure: 0yrs
  • Tom Werner (53yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$6.84m
  • Dexter Congbalay

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Micheline Carter (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.9yrs
    • Compensation: US$1.25m
  • Sharon Miller (53yo)

    Senior VP & GM of Global Business Unit

    • Tenure: 3.1yrs
    • Compensation: US$1.79m
  • Mike Smith (42yo)

    Senior VP and GM of Foodservice

    • Tenure: 3.1yrs
    • Compensation: US$2.03m
  • Gerardo Scheufler

    Senior VP & Chief Supply Chain Officer

    • Tenure: 0.2yrs

Board Members

  • Jerry Jurgensen (67yo)

    Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: US$386.63k
  • Chuck Blixt (68yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$251.63k
  • Hala Moddelmog (63yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$236.63k
  • André Hawaux (58yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$236.63k
  • Peter Bensen (57yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$236.63k
  • Thomas Maurer (68yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$259.95k
  • Tom Werner (53yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$6.84m
  • Maria Sharpe (60yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$236.63k

Company Information

Lamb Weston Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lamb Weston Holdings, Inc.
  • Ticker: 0L5
  • Exchange: DB
  • Founded: 1950
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$11.242b
  • Listing Market Cap: US$10.092b
  • Shares outstanding: 146.06m
  • Website: https://www.lambweston.com

Number of Employees


Location

  • Lamb Weston Holdings, Inc.
  • 599 South Rivershore Lane
  • Eagle
  • Idaho
  • 83616
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LWNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2016
0L5DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2016
LW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2016

Biography

Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers fro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:58
End of Day Share Price2019/10/18 00:00
Earnings2019/08/25
Annual Earnings2019/05/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.