Lamb Weston Holdings LW
United StatesConsumer Defensive · Packaged FoodsUSD
55.91 USD (+16.3%)
11 analysts
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Lamb Weston Holdings is a producer and processor of frozen potatoes and other potato products, selling mainly to restaurants, fast-food chains, and supermarkets worldwide.
Key points
from its scores- ✓Favourable backdrop7.9
- ✕Weak growth1.9
- ✕Poor share-price trend2.1
- ✕Fragile balance sheet3.6
AI analysis
bottom line, main risk, context and newsHold or wait for an improvement in fundamentals before buying; the valuation is attractive but the deterioration in growth and high leverage are significant risks.
Lamb Weston presents a mixed financial profile: its financial health is weak (score 4.22) due to high leverage (Net Debt/EBITDA of 3.63x) and a low operating margin (7.92%), while its valuation is attractive (forward P/E of 14.25) and it offers a decent dividend (net yield of 3.16%). However, earnings growth is very negative (-54.30%), reflecting a business under pressure.
The main risk is the high leverage (Net Debt/EBITDA of 3.63x) combined with a low operating margin (7.92%), which makes the company vulnerable to a rising interest rate environment and any additional cost pressure.
Context and risks
Lamb Weston operates in the food sector, a defensive consumer sector, but its high leverage (Net Debt/EBITDA of 3.63x) and relatively narrow operating margin (7.92%) make it vulnerable to a rising interest rate environment, which increases the cost of servicing its debt. The governance risk of the country of domicile (USA) is moderate, but no specific regulatory or geopolitical risk is identified beyond the general context.
Is Lamb Weston Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 26.3 | 19.8 | +33% |
| EV / EBITDA | 10.0 | 10.8 | −8% |
| Price / book | 3.6 | 2.7 | +33% |
| Price / sales | 1.0 | 1.2 | −19% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 55.91 USD, +16.3% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 26.3
- Forward P/E
- 14.3
- EV / EBITDA
- 10.0
- Price / book
- 3.6
- Price / sales
- 1.0
- PEG
- 0.78
- Market cap
- 6.6B USD
- Enterprise value
- 10.4B USD
Profitability
- ROE
- 14.2%
- ROA
- 5.5%
- ROIC (approx.)
- 9.1%
- Gross margin
- 19.8%
- Operating margin
- 7.9%
- Net margin
- 3.8%
- Free cash flow
- 315.6M USD
- FCF yield
- 4.8%
- Cash conversion
- 30%
Solvency
- Total debt
- 4.0B USD
- Net debt
- 3.8B USD
- Cash
- 166.3M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 3.63
- Debt / equity
- 219.00
- Current ratio
- 1.46
- Quick ratio
- 0.68
Growth
- Revenue growth
- +0.7%
- Earnings growth
- −54.3%
- EPS (TTM)
- 1.83 USD
- EPS (forward)
- 3.37 USD
Dividend
- Dividend yield
- 3.2%
- Payout
- 82.5%
Risk and market
- Beta
- 0.47
- Analyst consensus
- Buy (11)
- Target price
- 55.91 USD
- 52-week range
- 37.62 – 67.07
Recent news
All LW news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Lamb Weston Holdings
Is Lamb Weston Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%). Valuation score: 6.0 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 55.91 USD, +16.3% versus the price. This is not investment advice.
What score does Lamb Weston Holdings get on MeridIAn Screener?
It scores 4.8 out of 10, rank 1,784 of 2,130 (better than 16% of the companies analysed). Its strongest category is Risk & Context (7.9) and its weakest, Growth (1.9). Analysis of 08/10/2026.
What is Lamb Weston Holdings's P/E ratio?
Its P/E is 26.3: the share price equals 26.3 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 14.3.
How much is Lamb Weston Holdings worth on the stock market?
Its market capitalisation is 6.6B USD and its enterprise value, debt included, is 10.4B USD.
How much debt does Lamb Weston Holdings have?
Its net debt (debt minus cash) is 3.8B USD. That is 3.63 times its EBITDA; the Consumer Defensive median is 2.38.
Does Lamb Weston Holdings pay a dividend?
Yes: its dividend yield is 3.16% and it pays out 83% of its earnings.
How has Lamb Weston Holdings stock performed over the last year?
It has fallen 22.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 37.62 and 67.07 USD. Past performance does not guarantee future results.
What do analysts think of Lamb Weston Holdings?
11 analysts cover it; their average recommendation is “Buy” and their average target is 55.91 USD (+16.3% versus the price). It is an estimate, not market data.