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Lamb Weston Holdings Inc LW

Morningstar Rating
$86.96 +0.89 (1.03%)
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Company Report

Price vs Fair Value

LW is trading at a 867% premium.
Price
$86.07
Fair Value
$971.00
Uncertainty
Medium
1-Star Price
$229.10
5-Star Price
$88.00
Economic Moat
Tcmcmq
Capital Allocation
Yltyggzn

Bulls Say, Bears Say

Bulls

Lamb Weston’s products generate high margins for restaurants, increasing their loyalty and willingness to pay for consistency and quality.

Bears

Poor execution, like the initial rollout of its new ERP system in fiscal 2024, can overshadow its competitive advantages and lead to lost market share and profit margin erosion.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$86.07
Day Range
$85.7187.19
52-Week Range
$77.41117.38
Bid/Ask
$86.48 / $87.42
Market Cap
$12.56 Bil
Volume/Avg
1.4 Mil / 2.5 Mil

Key Statistics

Price/Earnings (Normalized)
15.65
Price/Sales
1.92
Dividend Yield (Trailing)
1.50%
Dividend Yield (Forward)
1.68%
Total Yield
2.88%

Company Profile

Lamb Weston is North America’s largest and the world’s second-largest producer of branded and private-label frozen potato products, both by volume and value. The company’s portfolio is anchored by French fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Nearly 70% of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald’s is Lamb Weston’s single largest customer at 13% of fiscal 2023 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Core
Total Number of Employees
10,300

Competitors

Valuation

Metric
LW
CAG
GIS
Price/Earnings (Normalized)
15.6511.3515.42
Price/Book Value
7.071.594.27
Price/Sales
1.921.202.08
Price/Cash Flow
11.677.8812.80
Price/Earnings
LW
CAG
GIS

Financial Strength

Metric
LW
CAG
GIS
Quick Ratio
0.440.290.33
Current Ratio
1.190.950.66
Interest Coverage
8.103.357.70
Quick Ratio
LW
CAG
GIS

Profitability

Metric
LW
CAG
GIS
Return on Assets (Normalized)
12.40%5.79%8.71%
Return on Equity (Normalized)
57.00%14.39%27.32%
Return on Invested Capital (Normalized)
18.11%8.83%13.78%
Return on Assets
LW
CAG
GIS
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NSRGY
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KHC
The Kraft Heinz CoRqmlgwvgPmspd$43.9 Bil
DANOY
Danone SA ADRPppqdfgsVccgrpp$41.4 Bil
GIS
General Mills IncZhpqjdmpwtDvtpn$40.3 Bil
K
Kellanova CoLnvxrlxtzVvhlc$21.4 Bil
MKC
McCormick & Co Inc Registered Shs Non VtgLwgkllnhTjn$20.0 Bil
HRL
Hormel Foods CorpZsfmcttvZnzqtb$19.5 Bil
CAG
Conagra Brands IncPltyrnhrVvpx$14.8 Bil
CPB
Campbell Soup CoLxtxsxlqbYvym$13.6 Bil

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