Lamb Weston Holdings, Inc.

Consumer Staples
Packaged Foods
www.lambweston.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.25B
PE 20
Debt $4.26B
Cash $67.50M
EV $11.44B
FCF $85.50M

Earnings

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Sales & Net Margins

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Earnings	$367.00M
EBIT	$691.80M
ROE	22%
ROA	9%
FCF	$85.50M
Equity	$1.63B
Growth Stability	52%
PE	19.75
PEG	0.78
PB	4.44
P/FCF	84.78
P/S	1.13
Price/Cash	0.01
Debt/Equity	2.61
Debt/FCF	49.81
Net Margins	5%
Gross Margins	23%
Op. Margins	11%
Earnings CAGR	8%
Sales Growth YoY	4%
Sales Growth QoQ	-5%
Sales CAGR	9%
FCF CAGR	-9%
Equity CAGR	10%
Earnings Stability	0.19
Earnings Growth YoY	0%
Earnings Growth QoQ	-504%
Earnings CAGR 5Y	25%

Sales CAGR 5Y	17%
FCF CAGR 5Y	-25%
Equity CAGR 5Y	57%
Earnings CAGR 3Y	20%
Sales CAGR 3Y	20%
FCF CAGR 3Y	-20%
Equity CAGR 3Y	76%
Market Cap	$7.25B
Revenue	$6.39B
Dividend Yield	3%
Payout Ratio	56%
Assets	$7.42B
Total Debt	$4.26B
Cash	$67.50M
Shares Outstanding	141.9M
EV	11.44B
Earnings Score	10%
Moat Score	88%
Safety Score	43%
Final Score	47%
Working Capital	574.1M
Current Ratio	1.35
Gross Profit	$1.44B
Shares Growth 3y	-0%
Equity Growth QoQ	0%
Equity Growth YoY	-7%

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.

2025
- 10-Q Feb 23
2024
- 10-Q Nov 24
- 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

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 8%

Stability 19%

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Lamb Weston Holdings, Inc. Discounted Cash Flow

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

Years

Calculation mode

= $482M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$86M	$78M	$71M	$65M	$59M	$54M	$49M	$45M	$41M	$37M	$34M	$340M
DCF		$71M	$59M	$49M	$40M	$33M	$28M	$23M	$19M	$16M	$13M	$131M
Value	$482M

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%	5%
ROA	-	20%	21%	21%	22%	12%	11%	11%	19%	14%	9%
ROE	-	20%	-50%	-124%	-10K%	152%	66%	56%	71%	41%	22%

Bad Net Margins (4.97%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

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	49.81
Debt over Equity	-	0.09	-3.71	-7.09	-503.96	14.81	5.79	7.7	2.47	2.33	2.61
Growth Stability	-	-	-	100%	100%	91%	76%	52%	100%	100%	52%

Bad Debt/FCF ratio (49.81)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.61)

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%	17%
Earnings YoY growth	-	5%	16%	27%	13%	-22%	-13%	-37%	402%	-28%	25%
Equity YoY growth	-	3%	-146%	-48%	-99%	-5K%	100%	-25%	291%	27%	57%
FCF YoY growth	-	-4%	-31%	9%	99%	17%	-0%	-68%	-16%	-222%	-25%