Lamb Weston Holdings (LW) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: 3.37%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.45
• Revenue Growth: 2.35%
• EPS Growth: 9.61%
• Country: US
• Employees: 10,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.69
• Shares Outstanding: 138,879,880
• 10 Day Avg. Volume: 3,593,792
• 30 Day Avg. Volume: 2,067,546
• PEG Ratio: -0.45
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 34.47
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 8.45
• Enterprise Value/Ebitda: 11.45
• 1Y Price Target: $55.90
• Price Target Upside: 30.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): $6.54B

• Rating: 61 Neutral
• Price Target: $46.00 ▲(7.48% Upside)

Lamb Weston Holdings' overall stock score reflects a mixed financial performance with strong cash flow but declining margins and high leverage. The technical analysis indicates bearish momentum, while valuation metrics suggest the stock is fairly valued. The earnings call provides a balanced view with both growth prospects and challenges.

Positive Factors

Strong Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Volume Growth

Consistent volume growth indicates strong demand and market share expansion, which can drive future revenue and profitability.

Dividend Increase

Increasing dividends reflect confidence in cash flow generation and commitment to returning value to shareholders, enhancing investor appeal.

Negative Factors

Declining Profit Margins

Declining profit margins suggest cost pressures and pricing challenges, which can impact long-term profitability if not addressed.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth or weather economic downturns.

International Segment Challenges

Challenges in international markets can hinder growth prospects and diversification, impacting overall revenue stability and expansion opportunities.

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 to various customers, including quick-service restaurants, casual dining establishments, and retail grocery chains. The company operates on a business-to-business model, where most of its sales come from contracts and bulk orders. Key revenue streams include the sale of traditional frozen fries, specialty potato products, and value-added items such as seasoned and coated fries. Additionally, Lamb Weston benefits from significant partnerships with major food service brands and retailers, ensuring a steady demand for its products. The company also invests in product innovation and marketing strategies to enhance its offerings, thereby driving revenue growth. Factors contributing to its earnings include global market demand for convenience foods, the expansion of food service operations, and ongoing trends in consumer preferences toward high-quality, customizable food options.

Lamb Weston Holdings Financial Statement Overview

Summary

Lamb Weston Holdings shows moderate revenue growth and strong cash flow management, with a significant increase in free cash flow. However, declining profit margins and high leverage pose potential risks, requiring focus on improving profitability and managing debt levels.

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	6.46B	6.45B	6.47B	5.35B	4.10B	3.67B
Gross Profit	1.39B	1.40B	1.77B	1.43B	832.00M	832.00M
EBITDA	1.02B	1.07B	1.37B	1.10B	636.50M	662.60M
Net Income	294.10M	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	500.20M	230.10M	-131.30M	107.70M	128.50M	405.50M
Operating Cash Flow	890.10M	868.30M	798.20M	761.70M	418.60M	552.70M
Investing Cash Flow	-388.70M	-648.00M	-984.10M	-1.34B	-310.50M	-162.50M
Financing Cash Flow	-525.70M	-225.00M	-48.00M	340.80M	-363.40M	-974.00M

Lamb Weston Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LW, the sentiment is Negative. The current price of 42.8 is below the 20-day moving average (MA) of 57.67, below the 50-day MA of 60.06, and below the 200-day MA of 55.36, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 16.08 is Positive, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LW.

Lamb Weston Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INGR	65 Neutral	$7.02B	11.01	16.10%	2.86%	-3.83%	-2.04%
POST	64 Neutral	$5.20B	18.42	8.56%	―	2.97%	-2.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LW	61 Neutral	$6.12B	15.80	23.16%	3.37%	2.35%	9.61%
CPB	60 Neutral	$8.52B	14.78	14.82%	5.46%	2.71%	4.90%
CAG	52 Neutral	$8.30B	-83.87	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$10.53B	-8.83	-17.44%	4.40%	-0.66%	-326.55%

Lamb Weston Holdings Corporate Events

Lamb Weston Holds Annual Stockholders Meeting

On September 25, 2025, Lamb Weston Holdings, Inc. conducted its annual meeting of stockholders in Eagle, Idaho, with approximately 88.6% of shares represented. During the meeting, twelve directors were elected to serve one-year terms, the fiscal 2025 executive compensation was approved, and KPMG LLP was ratified as the independent auditor for the fiscal year ending May 31, 2026.