Lamb Weston Holdings (LW) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: 2.66%
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.48
• Revenue Growth: -0.25%
• EPS Growth: -49.73%
• Country: US
• Employees: 10,700
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): 0.87
• Shares Outstanding: 139,300,810
• 10 Day Avg. Volume: 1,347,256
• 30 Day Avg. Volume: 2,377,693
• 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: 1.47
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 8.09
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $61.88
• Price Target Upside: 13.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $58.00 ▲(6.11% Upside)

Lamb Weston Holdings demonstrates strong financial performance and strategic initiatives, particularly in cost reduction and product innovation. The board restructuring is a positive development, but challenges in market conditions and valuation concerns moderate the overall score.

Positive Factors

Cost Management

Lamb Weston expects to deliver over $250 million in annualized savings by the end of fiscal year 2028, aiding in cash flow generation through inventory management.

Financial Performance

The 4Q results exceeded expectations due to volume growth and stronger business execution.

Strategic Partnerships

Lamb Weston remains open to opportunistic mergers and acquisitions, partnerships, or joint ventures, especially in the European market, if they align with its 'Focus to Win' strategy.

Negative Factors

External Challenges

Management spoke to soft QSR traffic, price investment, additional international industry capacity, and inflationary input costs.

Pricing Pressure

Pricing pressure is expected to continue through FY27 due to local competitors ramping their recent capacity additions to full utilization.

Sales Growth

The company expects FY26 organic sales growth to be flat or slightly negative, driven by the negative impact from lower priced customer contracts.

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 strong revenue growth and profitability margins, though net income has declined and debt reliance is increasing. Despite these concerns, efficient cash flow management and operational efficiency are evident.

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	1.40B	1.40B	1.77B	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: Neutral
• Last Price: 54.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LW, the sentiment is Neutral. The current price of 54.66 is below the 20-day moving average (MA) of 54.99, above the 50-day MA of 53.40, and below the 200-day MA of 58.21, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LW.

Lamb Weston Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POST	77 Outperform	$5.97B	18.94	9.23%	―	0.80%	10.43%
CAG	72 Outperform	$9.20B	8.02	13.27%	7.27%	-3.64%	231.77%
LW	69 Neutral	$7.68B	22.01	20.26%	2.66%	-0.25%	-49.73%
INGR	69 Neutral	$8.09B	12.30	17.11%	2.52%	-5.16%	4.95%
CPB	66 Neutral	$9.75B	21.60	11.67%	4.75%	8.65%	-38.57%
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%
SJM	60 Neutral	$11.95B	22.22	-17.87%	3.84%	6.69%	-261.87%

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.