Lamb Weston Holdings (LW) AI Stock Analysis

• Market Cap: $9.02B
• Dividend Yield: 2.26%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.49
• 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: 139,352,480
• 10 Day Avg. Volume: 1,841,182
• 30 Day Avg. Volume: 2,131,216
• 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: 1.31
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: 15.97
• 1Y Price Target: $64.40
• Price Target Upside: -1.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: $67.00 ▲(2.82% Upside)

Lamb Weston Holdings demonstrates strong technical momentum and effective cash flow management, which are significant strengths. However, the high leverage and declining profit margins present risks. The stock's valuation is relatively high, but the earnings call provided positive guidance, supporting a moderately favorable outlook.

Positive Factors

Strong Cash Flow Management

Strong cash flow management enhances financial stability, allowing for reinvestment in growth initiatives and providing a buffer against economic fluctuations.

Volume Growth

Sustained volume growth indicates robust demand and successful market penetration, supporting long-term revenue expansion and competitive positioning.

Product Innovation

Continuous product innovation enhances market appeal and differentiation, fostering customer loyalty and opening new revenue streams.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk during economic downturns, potentially impacting long-term financial health.

Declining Profit Margins

Declining profit margins suggest cost pressures and competitive challenges, which may hinder profitability and require strategic cost management.

International Competition

Heightened competition internationally can erode market share and pricing power, necessitating strategic adjustments to maintain competitive advantage.

Lamb Weston Holdings Business Overview & Revenue Model

Company Description

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. The company also offers its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' brands. In addition, it engages in the vegetable and dairy businesses. The company serves retail and foodservice customers; and grocery, mass merchants, club, and specialty retailers; and businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.

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 moderate revenue growth and strong cash flow management, which are favorable indicators. However, declining profit margins and high leverage pose potential risks. The company needs to focus on improving profitability and managing debt levels to ensure long-term financial stability.

Income Statement

Lamb Weston Holdings shows moderate revenue growth with a TTM increase of 8.1%, indicating a positive trend. However, profitability margins have declined over time, with the TTM net profit margin at 4.56%, down from previous periods. The gross profit margin has also decreased, reflecting potential cost pressures. Despite these challenges, the company maintains a stable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 2.22 in the TTM, indicating significant leverage. This poses a risk, particularly in volatile market conditions. The return on equity has decreased to 17.32% in the TTM, reflecting reduced profitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Lamb Weston Holdings demonstrates strong cash flow management, with a significant increase in free cash flow growth at 117.38% in the TTM. The operating cash flow to net income ratio is healthy at 0.71, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio has improved, reflecting enhanced cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.78B	6.45B	6.47B	5.35B	4.10B	3.67B
Gross Profit	1.03B	1.37B	1.76B	1.43B	832.00M	832.00M
EBITDA	742.70M	1.07B	1.37B	1.10B	636.50M	662.60M
Net Income	174.20M	357.20M	725.50M	1.01B	200.90M	317.80M
Balance Sheet
Total Assets	7.24B	7.39B	7.37B	6.52B	4.14B	4.21B
Cash, Cash Equivalents and Short-Term Investments	98.60M	70.70M	71.40M	304.80M	525.00M	783.50M
Total Debt	3.99B	4.16B	3.85B	3.49B	2.75B	2.77B
Total Liabilities	5.45B	5.65B	5.58B	5.11B	3.78B	3.73B
Stockholders Equity	1.79B	1.74B	1.79B	1.41B	360.50M	480.60M
Cash Flow
Free Cash Flow	205.00M	230.10M	-131.30M	107.70M	128.50M	405.50M
Operating Cash Flow	507.10M	868.30M	798.20M	761.70M	418.60M	552.70M
Investing Cash Flow	-299.70M	-648.00M	-984.10M	-1.34B	-310.50M	-162.50M
Financing Cash Flow	-231.30M	-225.00M	-48.00M	340.80M	-363.40M	-974.00M

Lamb Weston Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.16
• 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 65.16 is above the 20-day moving average (MA) of 62.86, above the 50-day MA of 58.68, and above the 200-day MA of 55.11, indicating a bullish trend. The MACD of 2.10 indicates Positive momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.08 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	$5.91B	18.53	9.23%	―	0.80%	10.43%
INGR	69 Neutral	$7.72B	11.64	17.11%	2.70%	-5.16%	4.95%
LW	67 Neutral	$9.02B	31.28	16.22%	2.26%	<0.01%	-51.18%
CPB	67 Neutral	$9.25B	15.48	15.64%	5.02%	6.40%	6.17%
CAG	64 Neutral	$8.91B	10.50	9.65%	7.58%	-4.11%	72.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	49 Neutral	$11.17B	―	-21.32%	4.23%	2.54%	-293.39%

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.