Lamb Weston Holdings (LW) AI Stock Analysis

• Market Cap: $7.76B
• Dividend Yield: 2.53%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.44
• Revenue Growth: <0.01%
• EPS Growth: -51.18%
• Country: US
• Employees: 10,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.74
• Shares Outstanding: 139,354,720
• 10 Day Avg. Volume: 1,594,362
• 30 Day Avg. Volume: 1,359,505
• PEG Ratio: -0.40
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 31.25
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $63.50
• Price Target Upside: 9.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $61.00 ▲(5.03% Upside)

Lamb Weston Holdings has a robust financial position with strong revenue growth and efficient cash flow management. The earnings call provided positive guidance, but challenges in international markets and a moderate valuation slightly offset these strengths.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective sales strategies, supporting long-term growth prospects.

Cash Flow Management

Strong cash flow management enhances financial stability, allowing for reinvestment in growth opportunities and debt reduction.

Market Position

Strong market position driven by volume growth and customer loyalty underpins competitive advantage and sustainable revenue streams.

Negative Factors

Net Income Decline

A decline in net income can pressure financial performance, potentially affecting future profitability and investment capacity.

Increasing Debt

High leverage may limit financial flexibility and increase risk, impacting the company's ability to invest in growth or weather downturns.

Profit Margin Pressure

Pressure on profit margins could affect overall profitability, necessitating cost control measures to maintain earnings stability.

Lamb Weston Holdings Business Overview & Revenue Model

Company Description

Lamb Weston Holdings, Inc. is a leading global supplier of frozen potato products, primarily serving the foodservice and retail sectors. The company operates through various segments, including Foodservice, Retail, and International, providing a wide range of products such as French fries, potato wedges, and specialty potato products. With a strong commitment to innovation and sustainability, Lamb Weston focuses on enhancing its product offerings to meet consumer demands while maintaining high-quality standards.

How the Company Makes Money

Lamb Weston generates revenue primarily through the sale of frozen potato products across its various segments. The Foodservice segment, which supplies restaurants, hotels, and other food establishments, is a significant revenue driver, benefiting from the high demand for convenience foods. The Retail segment sells packaged frozen potato products directly to consumers through grocery stores and supermarkets, contributing to steady revenue. Additionally, international sales are crucial, as the company exports its products to numerous countries, leveraging global demand for processed potatoes. Key partnerships with major restaurant chains and grocery retailers further enhance its market reach and sales volume. The company's focus on innovation, including the development of new products and flavors, also plays a vital role in driving growth and increasing its earnings.

Lamb Weston Holdings Financial Statement Overview

Summary

Lamb Weston Holdings shows strong revenue growth and efficient cash flow management. However, the decline in net income and increased reliance on debt slightly dampen the overall financial performance.

Income Statement

Lamb Weston Holdings shows a strong income statement with consistent revenue growth and healthy profitability margins. The company achieved a Gross Profit Margin of 21.67% and a Net Profit Margin of 5.54% in the latest report. However, the Net Profit has decreased notably from the previous year, indicating potential pressure on net earnings.

Balance Sheet

The balance sheet reflects moderate leverage with a Debt-to-Equity Ratio of 2.39. The Return on Equity (ROE) is 20.55%, which is a strong indicator of profitability relative to equity. However, the Equity Ratio is 23.51%, suggesting a higher reliance on debt financing.

Cash Flow

Lamb Weston Holdings demonstrates solid cash flow management with a positive Free Cash Flow of $230.1 million. The Operating Cash Flow to Net Income Ratio is 2.43, indicating efficient conversion of income to cash. The Free Cash Flow to Net Income Ratio is 0.64, reflecting a stable cash flow situation despite some fluctuations in capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.45B	6.45B	6.47B	5.35B	4.10B	3.67B
Gross Profit	1.37B	1.37B	1.76B	1.43B	832.00M	832.00M
EBITDA	1.07B	1.07B	1.37B	1.10B	636.50M	662.60M
Net Income	357.20M	357.20M	725.50M	1.01B	200.90M	317.80M
Balance Sheet
Total Assets	7.39B	7.39B	7.37B	6.52B	4.14B	4.21B
Cash, Cash Equivalents and Short-Term Investments	70.70M	70.70M	71.40M	304.80M	525.00M	783.50M
Total Debt	4.16B	4.16B	3.85B	3.49B	2.75B	2.77B
Total Liabilities	5.65B	5.65B	5.58B	5.11B	3.78B	3.73B
Stockholders Equity	1.74B	1.74B	1.79B	1.41B	360.50M	480.60M
Cash Flow
Free Cash Flow	230.10M	230.10M	-131.30M	107.70M	128.50M	405.50M
Operating Cash Flow	868.30M	868.30M	798.20M	761.70M	418.60M	552.70M
Investing Cash Flow	-648.00M	-648.00M	-984.10M	-1.34B	-310.50M	-162.50M
Financing Cash Flow	-225.00M	-225.00M	-48.00M	340.80M	-363.40M	-974.00M

Lamb Weston Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LW, the sentiment is Positive. The current price of 58.08 is above the 20-day moving average (MA) of 56.06, above the 50-day MA of 55.63, and above the 200-day MA of 55.47, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 59.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LW.

Lamb Weston Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POST	75 Outperform	$5.76B	18.40	9.16%	―	0.80%	10.43%
CAG	71 Outperform	$8.61B	7.51	12.90%	7.65%	-3.64%	231.77%
LW	69 Neutral	$7.76B	22.24	16.22%	2.53%	<0.01%	-51.18%
INGR	69 Neutral	$7.77B	11.82	15.91%	2.64%	-5.16%	4.95%
CPB	67 Neutral	$9.20B	15.38	15.43%	4.88%	6.40%	6.17%
SJM	50 Neutral	$11.46B	-7.92	-24.63%	4.00%	2.54%	-293.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Lamb Weston Holdings Corporate Events

Lamb Weston Announces Board Restructuring Agreement

On June 30, 2025, Lamb Weston Holdings announced a Cooperation Agreement with JANA Partners and Continental Grain, leading to significant changes in its Board of Directors. The agreement involves the resignation of four directors and the appointment of six new independent directors, including Bradley Alford as the new Chairman. This strategic move is expected to enhance Lamb Weston’s industry positioning and shareholder value by leveraging the new directors’ expertise and leadership experience.

The most recent analyst rating on (LW) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Lamb Weston Holdings stock, see the LW Stock Forecast page.