| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 1/6 |
| Financial Health | 3/6 |
| Dividends | 1/6 |
LW Stock Overview
Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide.
Lamb Weston Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$67.99 |
| 52 Week High | US$85.72 |
| 52 Week Low | US$49.71 |
| Beta | 0.56 |
| 1 Month Change | 1.72% |
| 3 Month Change | 0.22% |
| 1 Year Change | -17.58% |
| 3 Year Change | 14.75% |
| 5 Year Change | 43.50% |
| Change since IPO | 99.97% |
Recent News & Updates
Are Investors Undervaluing Lamb Weston Holdings, Inc. (NYSE:LW) By 50%?
Today we will run through one way of estimating the intrinsic value of Lamb Weston Holdings, Inc. ( NYSE:LW ) by taking...
Lamb Weston: An Unfavorable Prospect At Current Prices
Lamb Weston Holdings is an interesting company operationally speaking. But interesting does not always make for a good investment thesis, especially when fundamentals are less than ideal. Though not a bad prospect, the company does look to offer an unfavorable risk to reward scenario at this time.
Shareholder Returns
| LW | US Food | US Market | |
|---|---|---|---|
| 7D | 7.6% | 4.1% | 5.9% |
| 1Y | -17.6% | -0.9% | -10.2% |
Return vs Industry: LW underperformed the US Food industry which returned -1.9% over the past year.
Return vs Market: LW underperformed the US Market which returned -15.1% over the past year.
Price Volatility
| LW volatility | |
|---|---|
| LW Average Weekly Movement | 5.8% |
| Food Industry Average Movement | 7.0% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 2.9% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1950 | 7,800 | Tom Werner | https://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
| LW fundamental statistics | |
|---|---|
| Market Cap | US$9.82b |
| Earnings (TTM) | US$234.40m |
| Revenue (TTM) | US$3.95b |
41.9x
P/E Ratio2.5x
P/S RatioIs LW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LW income statement (TTM) | |
|---|---|
| Revenue | US$3.95b |
| Cost of Revenue | US$3.18b |
| Gross Profit | US$775.80m |
| Other Expenses | US$541.40m |
| Earnings | US$234.40m |
Last Reported Earnings
Feb 27, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.62 |
| Gross Margin | 19.62% |
| Net Profit Margin | 5.93% |
| Debt/Equity Ratio | 693.9% |
How did LW perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield59%
Payout RatioValuation
Is Lamb Weston Holdings undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
46.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LW ($67.99) is trading below our estimate of fair value ($127.85)
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 Price-To-Earnings Ratio (41.9x) compared to the US Food industry average (18.6x).
PE vs Market: LW is poor value based on its Price-To-Earnings Ratio (41.9x) compared to the US market (15.2x).
Price to Earnings Growth Ratio
PEG Ratio: LW is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: LW is overvalued based on its Price-To-Book Ratio (25x) compared to the US Food industry average (1.9x).
Future Growth
How is Lamb Weston Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
23.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LW's forecast earnings growth (23.7% per year) is above the savings rate (1.9%).
Earnings vs Market: LW's earnings (23.7% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LW's revenue (5.2% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: LW's revenue (5.2% 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 (52.1%).
Past Performance
How has Lamb Weston Holdings performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-6.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LW has high quality earnings.
Growing Profit Margin: LW's current net profit margins (5.9%) are lower than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: LW's earnings have declined by 6.3% 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 (-6.7%) over the past year, making it difficult to compare to the Food industry average (7.7%).
Return on Equity
High ROE: Whilst LW's Return on Equity (59.75%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Lamb Weston Holdings's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: LW's short term assets ($1.6B) exceed its short term liabilities ($612.9M).
Long Term Liabilities: LW's short term assets ($1.6B) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: LW's net debt to equity ratio (584.6%) is considered high.
Reducing Debt: LW had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: LW's debt is not well covered by operating cash flow (12.9%).
Interest Coverage: LW's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Dividend
What is Lamb Weston Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LW's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: LW's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (4.01%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (59.2%), LW's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (178.1%), LW's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Tom Werner (55 yo)
5.5yrs
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 below average for companies of similar size in the US market ($USD13.20M).
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 (2.8 years average tenure).
Board Members
Experienced Board: LW's board of directors are considered experienced (5.2 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 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
- Implied Market Cap: US$9.821b
- Shares outstanding: 144.45m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/27 00:00 |
| End of Day Share Price | 2022/05/27 00:00 |
| Earnings | 2022/02/27 |
| Annual Earnings | 2021/05/30 |
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.