A Business at a Glance
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Lamb Weston Holdings, Inc.
LW
$7.1B
Mkt Cap
$49.58
+0.81%
Lamb Weston Holdings, Inc. (LW) has a current P/E ratio of 22.9, compared to its historical median P/E of 20.6. The stock is currently considered Fair based on its historical valuation range.
Lamb Weston Holdings, Inc. (LW) has a 5-year average return on invested capital (ROIC) of 16.2%. This indicates strong capital allocation and a potential competitive advantage.
Lamb Weston Holdings, Inc. (LW) has a market capitalization of $7.5B. It is classified as a mid-cap stock.
Yes, Lamb Weston Holdings, Inc. (LW) pays a dividend with a trailing twelve-month yield of 2.74%.
Based on historical P/E analysis, Lamb Weston Holdings, Inc. (LW) appears fair. The current P/E of 22.9 is 12% above its historical median of 20.6. The estimated fair value CAGR (P/E method) is 7.2%.
Lamb Weston Holdings, Inc. (LW) operates in the Canned, Frozen & Preservd Fruit, Veg & Food Specialties industry, within the Consumer Defensive sector.
Lamb Weston Holdings, Inc. (LW) reported annual revenue of $6.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Lamb Weston is a leading global producer, distributor, and marketer of value-added frozen potato products, headquartered in Eagle, Idaho, and the number one supplier in North America with strong international presence across over 100 countries. The company operates two reportable segments—North America and International—selling primarily frozen potatoes and French fries under the Lamb Weston brand and licensed brands including Grown in Idaho and Alexia to quick-service and full-service restaurants, foodservice distributors, non-commercial channels, and retailers. The business model relies on a diverse customer base with long-tenured relationships with leading chains and distributors; however, customer concentration is significant, with the ten largest customers accounting for approximately 50% of consolidated net sales and McDonald's Corporation representing approximately 15% of sales. Lamb Weston operates 26 production facilities globally and sources potatoes through strategic long-term grower relationships and annual contracts, primarily from the Pacific Northwest in the U.S. and key European growing regions, supplemented by co-packing arrangements to optimize manufacturing efficiency. The company competes on customer service, product innovation, quality, brand recognition, and price in a highly competitive industry characterized by large multinational competitors and fragmented local and regional players, with particular competitive intensity in emerging markets. Seasonality significantly affects the business, with segment adjusted EBITDA typically highest in the fiscal third quarter due to cost benefits from freshly harvested potatoes, while net sales and cash flows tend to be higher in the fiscal fourth quarter reflecting customer and consumer buying patterns.
【Focus to Win execution underway】 Management is executing its Focus to Win strategy, which represents a departure from previous growth-focused approaches and emphasizes targeted decision-making, operational excellence, and disciplined capital allocation. The company has identified at least $250 million in annualized run-rate cost savings by the end of fiscal 2028, with approximately $100 million targeted for fiscal 2026, and has already delivered the full-year savings target by the end of the third quarter. In North America, the business is experiencing strong momentum with customer wins, share gains, and solid retention, though management expects price-mix headwinds to persist into fiscal 2027 due to lapping effects from prior-year pricing actions and continued mix pressure toward lower-margin restaurant and private-label retail customers. International markets remain dynamic and challenging, with management working to rebalance supply and demand globally, optimize asset utilization, and navigate softer restaurant traffic, excess European potato supply, and local sourcing competition in emerging markets. The company expects to continue investing selectively in innovation and customer support while maintaining disciplined capital spending focused on maintenance, modernization, and environmental projects, and remains committed to returning cash to shareholders through dividends and opportunistic share repurchases.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $1.08 billion–$1.14 billion | FY2026 |
| Capital expenditures | approximately $400 million | FY2026 |
| Cost savings | $250 million | by end of FY2028 |
| Cost savings | $100 million | FY2026 |
Adjusted EBITDA (FY2026): “Adjusted EBITDA is now expected to be in the range of $1.08 billion-$1.14 billion, which includes our current assessment of the additional risk associated with the ongoing Middle East conflict.”
Capital expenditures (FY2026): “We now estimate full year cash spend to be approximately $400 million, aligned with our focus on maintenance, modernization, and environmental projects.”
Cost savings (by end of FY2028): “As part of these efforts, we set a target of $250 million in cost savings by fiscal year-end 2028.”
Cost savings (FY2026): “Our first goal was to achieve $100 million in savings in fiscal 2026. As of the end of third quarter, we have already delivered on those full year savings and are tracking ahead of our program target.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.5B | 6.5B | 6.5B | 5.4B | 4.1B | 3.7B |
| Net Income | 300M | 357M | 726M | 1.0B | 201M | 318M |
| EPS | $1.98 | $2.50 | $4.98 | $6.95 | $1.38 | $2.16 |
| Free Cash Flow | 634M | 230M | -131M | 108M | 129M | 406M |
| ROIC | 7.3% | 8.1% | 15.5% | 20.3% | 16.0% | 21.0% |
| Gross Margin | 20.6% | 21.7% | 27.3% | 26.8% | 20.3% | 22.7% |
| Debt/Equity | 2.19 | 2.43 | 2.36 | 2.45 | 7.66 | 5.76 |
| Dividends/Share | $1.36 | $1.46 | $1.28 | $1.05 | $0.96 | $0.93 |
| Operating Income | 608M | 665M | 1.1B | 882M | 444M | 475M |
| Operating Margin | 9.3% | 10.3% | 16.5% | 16.5% | 10.8% | 12.9% |
| ROE | 16.4% | 20.3% | 45.4% | 113.9% | 55.7% | 66.1% |
| Shares Outstanding | 152M | 143M | 146M | 145M | 146M | 147M |
| Metric | 2015 | 2016 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||||
| Revenue | 2.9B | 3.0B | 3.2B | 3.4B | 3.8B | 3.8B | 3.7B | 4.1B | 5.4B | 6.5B | 6.5B | 6.5B |
| Gross Margin | 20.1% | 22.3% | 24.6% | 25.7% | 26.7% | 23.6% | 22.7% | 20.3% | 26.8% | 27.3% | 21.7% | 20.6% |
| R&D | 7.2M | 6.7M | 11M | 14M | 15M | 15M | 13M | 16M | 17M | 26M | 22M | 22M |
| SG&A | 206M | 294M | 261M | 299M | 335M | 338M | 357M | 388M | 550M | 701M | 634M | 622M |
| EBIT | 381M | 373M | 518M | 580M | 668M | 557M | 475M | 444M | 882M | 1.1B | 665M | 608M |
| Op. Margin | 13.0% | 12.5% | 16.4% | 16.9% | 17.8% | 14.7% | 12.9% | 10.8% | 16.5% | 16.5% | 10.3% | 9.3% |
| Net Income | 267M | 285M | 327M | 417M | 479M | 366M | 318M | 201M | 1.0B | 726M | 357M | 300M |
| Net Margin | 9.1% | 9.5% | 10.3% | 12.2% | 12.7% | 9.6% | 8.7% | 4.9% | 18.9% | 11.2% | 5.5% | 4.6% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 286M | 110M |
| Returns on Capital | ||||||||||||
| ROIC | N/A | 15.4% | 19.6% | 22.2% | 22.2% | 39.7% | 21.0% | 16.0% | 20.3% | 15.5% | 8.1% | 7.3% |
| ROE | N/A | 20.4% | -50.5% | -124.5% | N/A | 152.5% | 66.1% | 55.7% | 113.9% | 45.4% | 20.3% | 16.4% |
| ROA | N/A | 13.2% | 13.2% | 15.1% | 15.7% | 7.8% | 7.5% | 4.9% | 18.9% | 10.4% | 4.8% | 4.1% |
| Cash Flow | ||||||||||||
| Op. Cash Flow | 354M | 382M | 447M | 481M | 681M | 574M | 553M | 419M | 762M | 798M | 868M | 979M |
| Free Cash Flow | 239M | 230M | 160M | 174M | 347M | 406M | 406M | 129M | 108M | -131M | 230M | 634M |
| Owner Earnings | 250M | 277M | 332M | 324M | 500M | 367M | 345M | 205M | 500M | 445M | 421M | 553M |
| CapEx | 115M | 152M | 287M | 307M | 334M | 168M | 147M | 290M | 654M | 930M | 638M | 344M |
| Maint. CapEx | 96M | 96M | 109M | 143M | 162M | 184M | 188M | 192M | 223M | 307M | 408M | 386M |
| Growth CapEx | 18M | 56M | 178M | 164M | 172M | 0 | 0 | 98M | 431M | 623M | 231M | 0 |
| D&A | 96M | 96M | 109M | 143M | 162M | 184M | 188M | 192M | 223M | 307M | 408M | 386M |
| CapEx/OCF | N/A | N/A | 64.3% | 63.8% | 49.1% | 29.2% | 26.6% | 69.3% | 85.9% | 116.4% | 73.5% | 35.2% |
| Capital Allocation | ||||||||||||
| Dividends Paid | 0 | 0 | 27M | 110M | 113M | 121M | 135M | 138M | 146M | 174M | 207M | 207M |
| Dividend Yield | N/A | N/A | 0.5% | 1.6% | 1.2% | 1.3% | 1.4% | 1.6% | 1.2% | 1.3% | 2.3% | 2.7% |
| Share Buybacks | 0 | 0 | 0 | 2.7M | 36M | 29M | 36M | 158M | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | 0.0% | 0.4% | 0.4% | 0.3% | 1.7% | 0.3% | 1.8% | 3.9% | 0.0% |
| Stock-Based Comp | 6.9M | 8.9M | 5.7M | 14M | 19M | 23M | 21M | 21M | 39M | 47M | 40M | 39M |
| Debt Repayment | 3.1M | 39M | 24M | 39M | 67M | 336M | 306M | 1.7B | 33M | 401M | 1.7B | 1.7B |
| Balance Sheet | ||||||||||||
| Net Debt | -18M | 70M | 2.3B | 2.3B | 2.3B | 812M | 1.2B | 1.7B | 3.2B | 4.1B | 4.2B | 3.9B |
| Cash & Equiv. | 31M | 36M | 57M | 56M | 12M | 1.4B | 784M | 525M | 305M | 71M | 71M | 58M |
| Long-Term Debt | N/A | 105M | 2.4B | 2.3B | 2.3B | 3.0B | 2.7B | 2.7B | 3.2B | 3.8B | 3.8B | 3.6B |
| Debt/Equity | N/A | 0.10 | -3.75 | -7.12 | -505.78 | 14.75 | 5.76 | 7.66 | 2.45 | 2.36 | 2.43 | 2.19 |
| Interest Coverage | N/A | 63.3 | 8.5 | 5.3 | 6.2 | 5.2 | 4.0 | 2.8 | 4410.5 | 3551.0 | 2217.0 | 2217.0 |
| Equity | N/A | 1.4B | -647M | -335M | -4.6M | 240M | 481M | 361M | 1.4B | 1.8B | 1.7B | 1.8B |
| Total Assets | N/A | 2.2B | 2.5B | 2.8B | 3.0B | 4.7B | 4.2B | 4.1B | 6.5B | 7.4B | 7.4B | 7.4B |
| Total Liabilities | N/A | 710M | 3.1B | 3.0B | 3.1B | 4.4B | 3.7B | 3.4B | 5.1B | 5.6B | 5.7B | 2.0M |
| Intangibles | N/A | 40M | 37M | 35M | 38M | 38M | 37M | 34M | 110M | 105M | 114M | 110M |
| Retained Earnings | N/A | N/A | 121M | 426M | 804M | 1.1B | 1.2B | 1.3B | 2.2B | 2.7B | 2.8B | 2.9B |
| Working Capital | N/A | 370M | 303M | 412M | 409M | 1.3B | 1.2B | 961M | 767M | 466M | 557M | 650M |
| Current Assets | N/A | 780M | 858M | 930M | 962M | 2.3B | 1.8B | 1.7B | 2.1B | 2.1B | 2.0B | 2.1B |
| Current Liabilities | N/A | 410M | 555M | 519M | 553M | 1.0B | 618M | 699M | 1.4B | 1.6B | 1.5B | 1.4B |
| Per Share Data | ||||||||||||
| EPS | 1.83 | 1.92 | 2.22 | 2.82 | 3.18 | 2.49 | 2.16 | 1.38 | 6.95 | 4.98 | 2.50 | 1.98 |
| Owner EPS | 1.72 | 1.87 | 2.26 | 2.19 | 3.32 | 2.50 | 2.34 | 1.41 | 3.45 | 3.05 | 2.95 | 3.64 |
| Book Value | N/A | 9.43 | -4.40 | -2.27 | -0.03 | 1.63 | 3.27 | 2.48 | 9.72 | 12.27 | 12.16 | 12.01 |
| Cash Flow/Share | 2.43 | 2.57 | 3.03 | 3.26 | 4.52 | 3.91 | 3.76 | 2.88 | 5.25 | 5.48 | 6.08 | 4.51 |
| Dividends/Share | N/A | 0.00 | 0.19 | 0.76 | 0.78 | 0.86 | 0.93 | 0.96 | 1.05 | 1.28 | 1.46 | 1.36 |
| Shares Out. | 145.7M | 148.6M | 147.3M | 147.8M | 150.5M | 146.9M | 147.1M | 145.6M | 145.2M | 145.7M | 142.9M | 152.1M |
| Valuation | ||||||||||||
| P/E Ratio | N/A | N/A | 18.0 | 20.6 | 17.1 | 21.7 | 35.1 | 46.0 | 14.9 | 17.0 | 20.9 | 25.1 |
| P/FCF | N/A | N/A | 36.8 | 49.1 | 23.6 | 19.6 | 27.5 | 71.9 | 139.2 | N/A | 32.5 | 11.9 |
| EV/EBIT | N/A | N/A | 15.8 | 18.7 | 15.7 | 15.7 | 26.0 | 24.6 | 20.2 | 15.0 | 17.2 | 18.9 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | 33.1 | 23.2 | 25.6 | 10.6 | 6.9 | 4.3 | 4.1 |
| Price/Sales | N/A | N/A | 1.6 | 2.0 | 2.5 | 2.5 | 2.6 | 2.1 | 2.3 | 2.1 | 1.4 | 1.2 |
| FCF Yield | N/A | N/A | 2.7% | 2.0% | 4.2% | 5.1% | 3.6% | 1.4% | 0.7% | -1.1% | 3.1% | 8.4% |
| Market Cap | 0 | N/A | 5.9B | 8.6B | 8.2B | 7.9B | 11.2B | 9.2B | 15.0B | 12.3B | 7.5B | 7.5B |
| Avg. Price | 0.00 | N/A | 33.92 | 46.63 | 63.16 | 65.27 | 66.08 | 59.76 | 83.67 | 94.10 | 63.41 | 49.58 |
| Year-End Price | 0.00 | N/A | 39.90 | 57.99 | 54.47 | 54.06 | 75.78 | 63.42 | 103.24 | 84.54 | 52.26 | 49.58 |
Lamb Weston Holdings, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Lamb Weston Holdings, Inc. trades at 22.9x trailing earnings, compared to its 15-year median P/E of 20.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.8x vs a median of 32.5x. The company's 5-year average ROIC is 16.2% with a gross margin of 23.7%. Total shareholder yield (dividends) is 2.7%. At current prices, the estimated annualized return to fair value is -8.9%.
Lamb Weston Holdings, Inc. (LW) has a net profit margin of 5.5%. This is a modest margin.
Lamb Weston Holdings, Inc. (LW) generated $230 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Lamb Weston Holdings, Inc. (LW) has a debt-to-equity ratio of 2.43. This indicates higher leverage, which may increase financial risk.
Lamb Weston Holdings, Inc. (LW) reported earnings per share (EPS) of $2.50 in its most recent fiscal year.
Lamb Weston Holdings, Inc. (LW) has a return on equity (ROE) of 20.3%. This indicates the company generates strong returns for shareholders.
Lamb Weston Holdings, Inc. (LW) has a 5-year average gross margin of 23.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 11 years of financial data for Lamb Weston Holdings, Inc. (LW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Lamb Weston Holdings, Inc. (LW) has a book value per share of $12.16, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing its Focus to Win strategy, which represents a departure from previous growth-focused approaches and emphasizes targeted decision-making, operational excellence, and disciplined capital allocation. The company has identified at least $250 million in annualized run-rate cost savings by the end of fiscal 2028, with approximately $100 million targeted for fiscal 2026, and has already delivered the full-year savings target by the end of the third quarter. In North America, the business is experiencing strong momentum with customer wins, share gains, and solid retention, though management expects price-mix headwinds to persist into fiscal 2027 due to lapping effects from prior-year pricing actions and continued mix pressure toward lower-margin restaurant and private-label retail customers. International markets remain dynamic and challenging, with management working to rebalance supply and demand globally, optimize asset utilization, and navigate softer restaurant traffic, excess European potato supply, and local sourcing competition in emerging markets. The company expects to continue investing selectively in innovation and customer support while maintaining disciplined capital spending focused on maintenance, modernization, and environmental projects, and remains committed to returning cash to shareholders through dividends and opportunistic share repurchases.
Based on recent SEC filings and earnings calls, Lamb Weston Holdings, Inc. (LW) has provided the following forward guidance: Adjusted EBITDA: $1.08 billion–$1.14 billion (FY2026); Capital expenditures: approximately $400 million (FY2026); Cost savings: $250 million (by end of FY2028); Cost savings: $100 million (FY2026).