Lamb Weston Holdings, Inc.

Valuation Analysis

About the Company

Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. It sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to quick service and full-service restaurants and chains, wholesale, grocery, mass merchants, club retailers, and specialty retailers, as well as foodservice distributors and institutions, including bu

Lamb Weston Holdings, Inc. Stock at a Glance

Lamb Weston Holdings, Inc. (LW) is currently trading at $45.38 with a market capitalization of $6.3B. The trailing P/E ratio stands at 21.31x, with a forward P/E of 15.1x. The 52-week range spans from $37.62 to $67.07; the current price is 32.3% below the yearly high. Year-over-year revenue growth stands at +2.9%. The net profit margin stands at 4.61%.

💰 Dividend

Lamb Weston Holdings, Inc. pays an annual dividend of $1.52 per share, representing a yield of 3.35%. The payout ratio stands at 69.95%.

📊 Analyst Rating

12 analysts rate Lamb Weston Holdings, Inc. (LW) on consensus: Buy. The average price target is $46.50, implying +2.47% from the current price. Analyst price targets range from $40.00 to $65.00.

Lamb Weston Holdings, Inc.: The Investment Case in Detail

Lamb Weston Holdings, Inc. (LW) operates in the Consumer Defensive — specifically Packaged Foods — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue growth has slowed to just 2.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 4.61%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 220.06% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

The PEG ratio at 1.03 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 8.77x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 15.1x is meaningfully below the trailing 21.31x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.35% combined with a payout ratio of 69.95% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.81%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Lamb Weston Holdings, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.