Lamb Weston Holdings, Inc.

Consumer Staples
Packaged Foods
www.lambweston.com

Earnings Score
Moat Score
Safety Score

Market Cap $11.13B
PE 18
Debt $4.04B
Cash $120.80M
EV $15.06B
FCF -$194.30M

Earnings

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Sales & Net Margins

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Earnings	$618.10M
EBIT	$954.10M
ROE	34%
ROA	13%
FCF	-$194.30M
Equity	$1.84B
Growth Stability	52%
PE	18.01
PEG	0.68
PB	6.06
P/FCF	-57.3
P/S	1.72
Price/Cash	0.01
Debt/Equity	2.2
Debt/FCF	-20.81
Net Margins	8%
Gross Margins	25%
Op. Margins	15%
Earnings CAGR	10%
Sales Growth YoY	-1%
Sales Growth QoQ	3%
Sales CAGR	9%
FCF CAGR	-11%
Equity CAGR	7%
Earnings Stability	0.25
Earnings Growth YoY	-46%
Earnings Growth QoQ	-2%
Earnings CAGR 5Y	26%

Sales CAGR 5Y	15%
FCF CAGR 5Y	-33%
Equity CAGR 5Y	59%
Earnings CAGR 3Y	25%
Sales CAGR 3Y	25%
FCF CAGR 3Y	-37%
Equity CAGR 3Y	107%
Market Cap	$11.13B
Revenue	$6.46B
Dividend Yield	2%
Payout Ratio	32%
Assets	$7.51B
Total Debt	$4.04B
Cash	$120.80M
Shares Outstanding	143.6M
EV	15.06B
Earnings Score	12%
Moat Score	93%
Safety Score	42%
Final Score	49%
Working Capital	333.3M
Current Ratio	1.19
Gross Profit	$1.62B
Shares Growth 3y	-0%
Equity Growth QoQ	3%
Equity Growth YoY	22%

Assets & ROA

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Stockholders Equity & ROE

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Lamb Weston is the world's second-largest producer of branded and private-label frozen potato products, such as French fries, sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. The company also has a small appetizer business that produces onion rings, mozzarella sticks, and cheese curds. Including joint ventures, 52% of fiscal 2021 revenue was U.S.-based, with the remainder stemming from Europe, Canada, Japan, China, Korea, Mexico, and several other countries. we estimate Lamb Weston's customer mix is 58% quick-serve restaurants, 19% full-service restaurants, 8% other food service (hotels, commercial cafeterias, arenas, schools), and 16% retail. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.

SEC Filings

Direct access to Lamb Weston Holdings, Inc. (LW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 25
- 10-K May 26
- 10-Q Feb 25
2023
- 10-Q Nov 26
- 10-Q Aug 27
- 10-K May 28
- 10-Q Feb 26
2022
- 10-Q Nov 27
- 10-Q Aug 28
- 10-K May 29
- 10-Q Feb 27

Sector Comparison

How does Lamb Weston Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lamb Weston Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 25%

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Lamb Weston Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Lamb Weston Holdings, Inc..

Years

Calculation mode

= -$968M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$194M	-$173M	-$154M	-$138M	-$123M	-$110M	-$98M	-$87M	-$78M	-$69M	-$62M	-$617M
DCF		-$158M	-$128M	-$103M	-$84M	-$68M	-$55M	-$45M	-$36M	-$29M	-$24M	-$238M
Value	-$968M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	9%	9%	10%	12%	12%	10%	9%	5%	19%	11%	8%
ROA	-	20%	21%	21%	22%	12%	11%	11%	19%	14%	13%
ROE	-	20%	-50%	-124%	-10K%	152%	66%	56%	71%	41%	34%

Net Margins (7.7%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	0.56	15.07	13.62	6.69	8.75	6.86	21.7	32.31	-31.71	-20.81
Debt over Equity	-	0.09	-3.71	-7.09	-503.96	14.81	5.79	7.7	2.47	2.33	2.2
Growth Stability	-	-	-	100%	100%	91%	76%	52%	100%	100%	52%

Good Debt/FCF ratio (-20.81)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (2.2)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (52%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	2%	6%	8%	10%	1%	-3%	12%	31%	21%	15%
Earnings YoY growth	-	5%	16%	27%	13%	-22%	-13%	-37%	402%	-28%	26%
Equity YoY growth	-	3%	-146%	-48%	-99%	-5K%	100%	-25%	291%	27%	59%
FCF YoY growth	-	-4%	-31%	9%	99%	17%	-0%	-68%	-16%	-222%	-33%