NYSE
LW
Last Price
US $53.78
KEY FIGURES
MKT CAP
$7.4B
EPS
TTM
$2.11
EPS Growth (1Y)
-16.80%
PEG
TTM
-
P/E
TTM
25.54x
P/S
TTM
1.12x
YIELD
2.81%
GROWTH (5Y CAGR)
Revenue
12.49%
EBITDA
Cash Flow (DCF)
Fair Value
Market $53.78
—
Default assumptions
EBITDA Multiple
Fair Value
Market $53.78
-54.15%
Default assumptions
Valuation
Financial
Performance
Cash flow to debt coverage
Lamb Weston Holdings, Inc. cash flow to debt ratio of 22.02% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Free cash flow growth
Lamb Weston Holdings, Inc.'s free cash flow has increased -275.25% from $-131.30M last year to $230.10M, signaling increasing performance
Debt-to-equity ratio
Lamb Weston Holdings, Inc.'s debt to equity ratio is 2.16, which means that the company's assets are unhealthy financed, signaling financial risk.
Debt-to-equity trend
Lamb Weston Holdings, Inc.'s debt has decreased relative to shareholder equity from 2.39 last year to 2.16 today, signaling strengthened financials
Net debt to EBITDA
Lamb Weston Holdings, Inc. has a net debt to EBITDA ratio of 6.56x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Interest coverage
Lamb Weston Holdings, Inc.'s interest coverage ratio of 3.27 indicates that earnings with margin can cover interest payments on company debt
Profit margin growth
Lamb Weston Holdings, Inc.'s profit margin has decreased (20.79%) in the last year from 5.54% to 4.39%, signaling decreasing performance
Current ratio
Lamb Weston Holdings, Inc.'s short-term assets of $2.01B exceed its short-term liabilities of $1.42B
Return on assets
Lamb Weston Holdings, Inc.'s return on assets of 3.93% is lower than the 5.00% threshold, indicating inefficient asset utilization
Return on equity
Lamb Weston Holdings, Inc.'s return on equity of 16.12%, is higher than 15.00%, indicating good performance
Earnings quality
Lamb Weston Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Earnings stability
Lamb Weston Holdings, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings
Positive free cash flow
Lamb Weston Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Free cash flow yield
Lamb Weston Holdings, Inc. has a free cash flow yield of 3.23%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Earnings growth
Lamb Weston Holdings, Inc.'s yearly earnings has decreased 18.81% since last year from $357.20M to $290.00M, signaling decreasing performance
Revenue growth
Lamb Weston Holdings, Inc.'s yearly revenue has increased 2.50% since last year from $6.45B to $6.61B, signaling increasing performance
Return on invested capital
ROIC 6.51% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
3-year revenue CAGR
Lamb Weston Holdings, Inc.'s 3-year revenue CAGR of 7.31% is positive, indicating growing revenue over the past 3 years
Revenue consistency
Lamb Weston Holdings, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance
Return on equity consistency
Lamb Weston Holdings, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity
Cash Flow Valuation (DCF)
Lamb Weston Holdings, Inc. has insufficient data to evaluate this check.
Earnings yield (TTM)
Lamb Weston Holdings, Inc. has an earnings yield of 4.06%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
EBITDA Valuation
Lamb Weston Holdings, Inc. is overvalued relative to its fair value price of 24.66 based on EBITDA multiple model
EV/EBITDA (FY)
Lamb Weston Holdings, Inc. has an EV/EBITDA ratio of 18.61x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
PEG ratio (TTM/FY)
Lamb Weston Holdings, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.
Price-to-book ratio (FY)
Lamb Weston Holdings, Inc. has a price-to-book ratio of 3.91x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Price-to-sales ratio (TTM)
Lamb Weston Holdings, Inc. has a price-to-sales ratio of 1.08x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
20.26%
Return on equity
ROIC: 7.46%
Valuation History
20.2X
Price to Earnings
EV/EBITDA: 10.4X
Cash flow
Profit margin
-2.04%
Cash flow
-10.75%
EARNINGS FV (GRAHAM)
Fair Value
Market $53.78
84.10%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.