Lamb Weston Holdings Inc (LW) Stock

Lamb Weston Holdings Inc trades at a P/E ratio of 28.60, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 18.66 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.89 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.43, 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 4.59 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 4.56%, meaning it retains $4.56 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 11.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.20% and ROA at 7.05%, the company generates strong returns on invested capital.

Lamb Weston Holdings Inc's revenue grew by 0.30% 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 2.49%, paying $1.47 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 Oct 31, 2025.

The dividend sustainability can be assessed through the payout ratio - Lamb Weston Holdings Inc pays $1.47 per share in dividends against earnings of $2.08 per share, resulting in a payout ratio of 70.67%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Nov 28, 2025.

Lamb Weston Holdings Inc has a market capitalization of $8.3B, 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 139.35M 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 $12.85, while the current stock price is $59.46, resulting in a price-to-book (P/B) ratio of 4.63. 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 45% 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 $66.00 implies 11.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 2 Buy, 6 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.