NYSE:LW

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Executive Summary

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


Snowflake Analysis

Questionable track record with limited growth.


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

Stable Share Price: LW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LW's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.4%

LW

1.2%

US Food

1.5%

US Market


1 Year Return

-15.2%

LW

1.5%

US Food

22.8%

US Market

Return vs Industry: LW underperformed the US Food industry which returned 0.7% over the past year.

Return vs Market: LW underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

LWIndustryMarket
7 Day-1.4%1.2%1.5%
30 Day-0.3%-0.5%5.0%
90 Day6.9%0.7%15.2%
1 Year-14.1%-15.2%4.1%1.5%25.6%22.8%
3 Year34.9%30.1%5.5%-3.3%47.3%37.5%
5 Yearn/a24.2%7.2%133.4%107.3%

Long-Term 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

Valuation

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

7.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LW ($77.37) is trading below our estimate of fair value ($83.65)

Significantly Below Fair Value: LW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LW is poor value based on its PE Ratio (38.2x) compared to the US Food industry average (25.2x).

PE vs Market: LW is poor value based on its PE Ratio (38.2x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: LW is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: LW is overvalued based on its PB Ratio (27.7x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Lamb Weston Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LW's forecast earnings growth (15.7% per year) is above the savings rate (2%).

Earnings vs Market: LW's earnings (15.7% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: LW's earnings are forecast to grow, but not significantly.

Revenue vs Market: LW's revenue (6.4% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: LW's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LW's Return on Equity is forecast to be very high in 3 years time (58.3%).


Next Steps

Past Performance

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

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LW has high quality earnings.

Growing Profit Margin: LW's current net profit margins (8.3%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: LW's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: LW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LW had negative earnings growth (-41.5%) over the past year, making it difficult to compare to the Food industry average (-0.3%).


Return on Equity

High ROE: Whilst LW's Return on Equity (72.39%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Lamb Weston Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LW's short term assets ($1.8B) exceed its short term liabilities ($614.3M).

Long Term Liabilities: LW's short term assets ($1.8B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: LW's debt to equity ratio (671%) is considered high.

Reducing Debt: LW's debt to equity ratio has increased from 9.4% to 671% over the past 5 years.

Debt Coverage: LW's debt is not well covered by operating cash flow (20%).

Interest Coverage: LW's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LW's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: LW's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (3.87%).


Stability and Growth of Payments

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

Growing Dividend: LW's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.5%), LW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LW's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Tom Werner (54 yo)

4.17yrs

Tenure

US$6,659,042

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: Tom's total compensation ($USD6.66M) is below average for companies of similar size in the US market ($USD10.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Werner
President4.17yrsUS$6.66m0.21%
$ 24.1m
Robert McNutt
Senior VP & CFO4yrsUS$2.23m0.012%
$ 1.4m
Sharon Miller
Senior VP & GM of Global Business Unit4.33yrsUS$1.83m0.019%
$ 2.2m
Michael Smith
Senior VP and GM of Foodservice4.33yrsUS$2.08m0.027%
$ 3.0m
Gerardo Scheufler
Senior VP & Chief Supply Chain Officer1.42yrsUS$1.82m0.0021%
$ 240.3k
Dexter Congbalay
Vice President of Investor Relationsno datano datano data
Eryk Spytek
Senior VP4.25yrsUS$1.67m0.015%
$ 1.7m
Micheline Carter
Senior VP & Chief Human Resources Officer4.33yrsUS$1.25m0.014%
$ 1.5m
Bernadette Madarieta
VP & Controllerno datano data0.0041%
$ 464.7k

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: LW's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Werner
President4.17yrsUS$6.66m0.21%
$ 24.1m
William Jurgensen
Independent Non-Executive Chairman3.33yrsUS$389.99k0.10%
$ 11.5m
Robert Niblock
Independent Director0.83yrUS$81.65k0.0017%
$ 194.0k
Charles Blixt
Independent Director4.17yrsUS$254.99k0.0068%
$ 767.0k
Hala Moddelmog
Independent Director3.5yrsUS$239.99k0.0049%
$ 555.0k
Andre Hawaux
Independent Director3.5yrsUS$239.99k0.026%
$ 2.9m
Peter Bensen
Independent Director3.08yrsUS$239.99k0.0073%
$ 826.8k
Thomas Maurer
Independent Director4.17yrsUS$264.99k0.0017%
$ 192.9k
Robert Coviello
Independent Director0.83yrUS$81.65kno data
Maria Sharpe
Independent Director4.17yrsUS$253.28k0.0042%
$ 468.1k

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: LW's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Lamb Weston Holdings, Inc.
  • Ticker: LW
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$11.280b
  • Shares outstanding: 146.36m
  • 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
L1WH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

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 Analysis2021/01/22 00:25
End of Day Share Price2021/01/21 00:00
Earnings2020/11/29
Annual Earnings2020/05/31


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.