Lamb Weston Holdings Inc (LW) Stock

Lamb Weston Holdings Inc trades at a P/E ratio of 15.84, 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 14.73 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.71 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.44, 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 3.46 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 6.06%, meaning it retains $6.06 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 9.47% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 23.20% and ROA at 6.91%, the company generates strong returns on invested capital.

Lamb Weston Holdings Inc's revenue grew by 1.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 47.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against PACKAGED FOODS industry averages for proper context.

Lamb Weston Holdings Inc offers a dividend yield of 3.36%, paying $1.48 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 Jan 30, 2026.

The dividend sustainability can be assessed through the payout ratio - Lamb Weston Holdings Inc pays $1.48 per share in dividends against earnings of $2.76 per share, resulting in a payout ratio of 53.62%. 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 Feb 27, 2026.

Lamb Weston Holdings Inc has a market capitalization of $6.1B, 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 138.88M shares outstanding, the company's ownership is relatively concentrated. As a participant in the PACKAGED FOODS industry, it competes with other firms in this sector.

Lamb Weston Holdings Inc's book value per share is $12.63, while the current stock price is $45.97, resulting in a price-to-book (P/B) ratio of 3.64. 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.

11 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 $54.64 implies 18.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 3 Buy, 7 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.