Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide. More Details
Moderate growth potential and slightly overvalued.
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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: LW's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: LW matched the US Food industry which returned 12.1% over the past year.
Return vs Market: LW underperformed the US Market which returned 39.1% over the past year.
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
6 days ago | Simply Wall StHere's Why Lamb Weston Holdings (NYSE:LW) Has A Meaningful Debt Burden
2 weeks ago | Simply Wall StAre Investors Undervaluing Lamb Weston Holdings, Inc. (NYSE:LW) By 28%?
1 month ago | Simply Wall StHow Many Lamb Weston Holdings, Inc. (NYSE:LW) Shares Do Institutions Own?
Is Lamb Weston Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LW ($75.5) is trading below our estimate of fair value ($111.25)
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 (44.1x) compared to the US Food industry average (23.3x).
PE vs Market: LW is poor value based on its PE Ratio (44.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: LW is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: LW is overvalued based on its PB Ratio (24.5x) compared to the US Food industry average (2.2x).
How is Lamb Weston Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LW's forecast earnings growth (15.4% per year) is above the savings rate (2%).
Earnings vs Market: LW's earnings (15.4% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: LW's earnings are forecast to grow, but not significantly.
Revenue vs Market: LW's revenue (6.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: LW's revenue (6.1% 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 (53.6%).
How has Lamb Weston Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LW has high quality earnings.
Growing Profit Margin: LW's current net profit margins (7.1%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: LW's earnings have grown by 4.7% 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 (-46.8%) over the past year, making it difficult to compare to the Food industry average (12.8%).
Return on Equity
High ROE: Whilst LW's Return on Equity (55.5%) is outstanding, this metric is skewed due to their high level of debt.
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 ($590.2M).
Long Term Liabilities: LW's short term assets ($1.8B) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: LW's debt to equity ratio (605.9%) is considered high.
Reducing Debt: LW's debt to equity ratio has increased from 9.5% to 605.9% over the past 5 years.
Debt Coverage: LW's debt is not well covered by operating cash flow (18.7%).
Interest Coverage: LW's interest payments on its debt are well covered by EBIT (4x coverage).
What is Lamb Weston Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LW's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: LW's dividend (1.25%) is low compared to the top 25% of dividend payers in the US market (3.56%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LW has been paying a dividend for less than 10 years.
Growing Dividend: LW's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54%), LW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LW's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Werner (55 yo)
Mr. Thomas P. Werner, also known as Tom, has been the Chief Executive Officer and President of Lamb Weston Holdings Inc. since November 2016. Mr. Werner served as the President of Commercial Foods at Conag...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD6.66M) is below average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Experienced Management: LW's management team is considered experienced (4.7 years average tenure).
Experienced Board: LW's board of directors are considered experienced (4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lamb Weston Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Lamb Weston Holdings, Inc.
- Ticker: LW
- Exchange: NYSE
- Founded: 1950
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$11.044b
- Shares outstanding: 146.28m
- Website: https://www.lambweston.com
Number of Employees
- Lamb Weston Holdings, Inc.
- 599 South Rivershore Lane
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/25 23:25|
|End of Day Share Price||2021/07/23 00:00|
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.