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$82.65|
|52 Week High||US$83.29|
|52 Week Low||US$49.71|
|1 Month Change||12.30%|
|3 Month Change||32.45%|
|1 Year Change||25.15%|
|3 Year Change||21.10%|
|5 Year Change||81.01%|
|Change since IPO||143.09%|
Recent News & Updates
|LW||US Food||US Market|
Return vs Industry: LW exceeded the US Food industry which returned 5.5% over the past year.
Return vs Market: LW exceeded the US Market which returned -9.6% over the past year.
|LW Average Weekly Movement||3.5%|
|Food Industry Average Movement||6.3%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: LW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LW's weekly volatility (4%) has been stable over the past year.
About the Company
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|
Is LW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LW income statement (TTM)|
|Cost of Revenue||US$3.27b|
Last Reported Earnings
May 29, 2022
Next Earnings Date
|Earnings per share (EPS)||1.40|
|Net Profit Margin||4.90%|
How did LW perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is LW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LW?
Other financial metrics that can be useful for relative valuation.
|What is LW's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does LW's PE Ratio compare to its peers?
|LW PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
SJM J. M. Smucker
CPB Campbell Soup
CAG Conagra Brands
FLO Flowers Foods
LW Lamb Weston Holdings
Price-To-Earnings vs Peers: LW is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the peer average (21.4x).
Price to Earnings Ratio vs Industry
How does LW's PE Ratio compare vs other companies in the US Food Industry?
Price-To-Earnings vs Industry: LW is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the US Food industry average (18.9x)
Price to Earnings Ratio vs Fair Ratio
What is LW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||59.1x|
|Fair PE Ratio||28.9x|
Price-To-Earnings vs Fair Ratio: LW is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).
Share Price vs Fair Value
What is the Fair Price of LW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LW ($82.65) is trading below our estimate of fair value ($133.12)
Significantly Below Fair Value: LW is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Lamb Weston Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LW's forecast earnings growth (20.6% per year) is above the savings rate (1.9%).
Earnings vs Market: LW's earnings (20.6% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: LW's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LW's revenue (7.2% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: LW's revenue (7.2% 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 (65.7%).
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How has Lamb Weston Holdings performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LW has high quality earnings.
Growing Profit Margin: LW's current net profit margins (4.9%) are lower than last year (8.6%).
Past Earnings Growth Analysis
Earnings Trend: LW's earnings have declined by 9.8% 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 (-36.6%) over the past year, making it difficult to compare to the Food industry average (5.4%).
Return on Equity
High ROE: Whilst LW's Return on Equity (55.73%) is outstanding, this metric is skewed due to their high level of debt.
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How is Lamb Weston Holdings's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: LW's short term assets ($1.7B) exceed its short term liabilities ($699.1M).
Long Term Liabilities: LW's short term assets ($1.7B) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: LW's net debt to equity ratio (609.2%) is considered high.
Reducing Debt: LW had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: LW's debt is not well covered by operating cash flow (15.4%).
Interest Coverage: LW's interest payments on its debt are well covered by EBIT (4.2x coverage).
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What is Lamb Weston Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LW's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: LW's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.96%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LW has been paying a dividend for less than 10 years.
Growing Dividend: LW's dividend payments have increased, but the company has only paid a dividend for 6 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (69.5%), LW's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (110%), LW's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Werner (56 yo)
Mr. Thomas P. Werner, also known as Tom, has been the Chief Executive Officer and President of Lamb Weston Holdings, Inc. since November 2016. Mr. Werner served as the President of Commercial Foods at Cona...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD7.86M) is below average for companies of similar size in the US market ($USD12.87M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: LW's management team is considered experienced (3 years average tenure).
Experienced Board: LW's board of directors are considered experienced (5.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LW insiders have only sold shares 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 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
- Implied Market Cap: US$11.879b
- Shares outstanding: 143.72m
- Website: https://www.lambweston.com
Number of Employees
- Lamb Weston Holdings, Inc.
- 599 South Rivershore Lane
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/16 00:00|
|End of Day Share Price||2022/08/16 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.