Lamb Weston Holdings Inc. (LW) Stock

Lamb Weston Holdings Inc. trades at a P/E ratio of 20.94, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 14.75 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.08 indicates a premium valuation even accounting for growth.

With a beta of 0.47, Lamb Weston Holdings Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.61 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Lamb Weston Holdings Inc. achieves a profit margin of 5.75%, meaning it retains $5.75 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 17.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 21.60% and ROA at 7.37%, the company generates strong returns on invested capital.

Lamb Weston Holdings Inc.'s revenue grew by 4.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 1.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against CANNED, FROZEN & PRESERVD FRUIT, VEG & FOOD SPECIALTIES industry averages for proper context.

Lamb Weston Holdings Inc. offers a dividend yield of 2.77%, paying $1.45 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/2/2025.

The dividend sustainability can be assessed through the payout ratio - Lamb Weston Holdings Inc. pays $1.45 per share in dividends against earnings of $2.55 per share, resulting in a payout ratio of 56.86%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 5/30/2025.

Lamb Weston Holdings Inc. has a market capitalization of $7.54B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 141.12M shares outstanding, the company's ownership is relatively concentrated. As a participant in the CANNED, FROZEN & PRESERVD FRUIT, VEG & FOOD SPECIALTIES industry, it competes with other firms in this sector.

Lamb Weston Holdings Inc.'s book value per share is $11.58, while the current stock price is $49.02, resulting in a price-to-book (P/B) ratio of 4.23. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

14 analysts cover LW with 36% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $65.76 implies 34.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 2 Buy, 9 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.