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LW

Lamb Weston HoldingsNYSE:LW Stock Report

Market Cap

US$8.5b

7D

5.2%

1Y

-13.9%

Updated

25 Oct, 2021

Data

Company Financials +
LW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends3/6

LW Overview

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

Lamb Weston Holdings Competitors

Lancaster Colony

NasdaqGS:LANC

US$4.8b

Hain Celestial Group

NasdaqGS:HAIN

US$4.3b

J & J Snack Foods

NasdaqGS:JJSF

US$2.8b

Hostess Brands

NasdaqCM:TWNK

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Lamb Weston Holdings
Historical stock prices
Current Share PriceUS$58.40
52 Week HighUS$54.18
52 Week LowUS$86.41
Beta0.76
1 Month Change-3.93%
3 Month Change-11.23%
1 Year Change-13.85%
3 Year Change-24.35%
5 Year Changen/a
Change since IPO71.77%

Recent News & Updates

Oct 17
Lamb Weston Holdings (NYSE:LW) Will Pay A Dividend Of US$0.23

Lamb Weston Holdings (NYSE:LW) Will Pay A Dividend Of US$0.23

Lamb Weston Holdings, Inc. ( NYSE:LW ) will pay a dividend of US$0.23 on the 3rd of December. This means the annual...

Oct 10

Lamb Weston Has More Than Just Short-Term Problems

LW stock has sold off to an 18-month low after forecasting a difficult fiscal 2022. The simple case seems to be that the market is overreacting, given strong pre-pandemic growth and a solid longer-term outlook. But there's increasing evidence that Lamb Weston's earnings are more cyclical than investors believed, which suggests the sell-off is a well-deserved correction. Investor perspectives can vary widely here, but at the least it's hard to see a compelling argument for Lamb Weston stock just yet.

Shareholder Returns

LWUS FoodUS Market
7D5.2%1.0%1.9%
1Y-13.9%9.8%33.4%

Return vs Industry: LW underperformed the US Food industry which returned 8% over the past year.

Return vs Market: LW underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is LW's price volatile compared to industry and market?
LW volatility
LW Beta0.76
Industry Beta0.71
Market Beta1

Stable Share Price: LW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LW's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19507,800Tom Wernerhttps://www.lambweston.com

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 frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.

Lamb Weston Holdings Fundamentals Summary

How do Lamb Weston Holdings's earnings and revenue compare to its market cap?
LW fundamental statistics
Market CapUS$8.53b
Earnings (TTM)US$258.30m
Revenue (TTM)US$3.78b

33.0x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LW income statement (TTM)
RevenueUS$3.78b
Cost of RevenueUS$3.01b
Gross ProfitUS$769.50m
ExpensesUS$511.20m
EarningsUS$258.30m

Last Reported Earnings

Aug 29, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.77
Gross Margin20.34%
Net Profit Margin6.83%
Debt/Equity Ratio637.2%

How did LW perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

53%

Payout Ratio

Does LW pay a reliable dividends?

See LW dividend history and benchmarks
When do you need to buy LW by to receive an upcoming dividend?
Lamb Weston Holdings dividend dates
Ex Dividend DateNov 04 2021
Dividend Pay DateDec 03 2021
Days until Ex dividend8 days
Days until Dividend pay date37 days

Does LW pay a reliable dividends?

See LW dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LW ($58.4) is trading below our estimate of fair value ($121.9)

Significantly Below Fair Value: LW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LW is poor value based on its PE Ratio (33x) compared to the US Food industry average (23.4x).

PE vs Market: LW is poor value based on its PE Ratio (33x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LW is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LW is overvalued based on its PB Ratio (20x) compared to the US Food industry average (2.2x).


Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LW's forecast earnings growth (21.5% per year) is above the savings rate (2%).

Earnings vs Market: LW's earnings (21.5% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: LW's revenue (5.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: LW's revenue (5.4% 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 (46.6%).


Past Performance

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

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LW has high quality earnings.

Growing Profit Margin: LW's current net profit margins (6.8%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: LW's earnings have grown by 0.2% 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 (-24%) over the past year, making it difficult to compare to the Food industry average (25.4%).


Return on Equity

High ROE: Whilst LW's Return on Equity (60.44%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Lamb Weston Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LW's short term assets ($1.7B) exceed its short term liabilities ($650.0M).

Long Term Liabilities: LW's short term assets ($1.7B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: LW's debt to equity ratio (637.2%) is considered high.

Reducing Debt: LW's debt to equity ratio has increased from 13% to 637.2% over the past 5 years.

Debt Coverage: LW's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: LW's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

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

1.61%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 26 2021Ex Dividend DateNov 04 2021Dividend Pay DateDec 03 202129 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LW's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: LW's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), LW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LW's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Tom Werner (55 yo)

4.92yrs

Tenure

US$6,407,381

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 Cona...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD6.41M) is about average for companies of similar size in the US market ($USD6.33M).

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


Leadership Team

Experienced Management: LW's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: LW's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LW 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 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$8.530b
  • Shares outstanding: 146.07m
  • Website: https://www.lambweston.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:24
End of Day Share Price2021/10/25 00:00
Earnings2021/08/29
Annual Earnings2021/05/30


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.