LAMB WESTON HOLDINGS INC (LW) Stock Fundamental Analysis
USA - NYSE:LW - US5132721045 - Common Stock
65.57 USD
-1 (-1.5%)
65 USD
-0.57 (-0.87%)
Overall LW gets a fundamental rating of 5 out of 10. We evaluated LW against 86 industry peers in the Food Products industry. LW has only an average score on both its financial health and profitability. LW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LW was profitable.
LW had a positive operating cash flow in the past year.
LW had positive earnings in each of the past 5 years.
LW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.06%, LW is doing good in the industry, outperforming 68.60% of the companies in the same industry.
With an excellent Return On Equity value of 16.43%, LW belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
LW has a better Return On Invested Capital (9.69%) than 82.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LW is significantly below the industry average of 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 16.43% | ||
| ROIC | 9.69% |
ROA(3y)10.05%
ROA(5y)8.51%
ROE(3y)44.21%
ROE(5y)50.9%
ROIC(3y)11.49%
ROIC(5y)10.72%
1.3 Margins
LW has a better Profit Margin (4.56%) than 68.60% of its industry peers.
LW's Profit Margin has declined in the last couple of years.
The Operating Margin of LW (12.75%) is better than 77.91% of its industry peers.
LW's Operating Margin has declined in the last couple of years.
The Gross Margin of LW (22.62%) is comparable to the rest of the industry.
LW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.75% | ||
| PM (TTM) | 4.56% | ||
| GM | 22.62% |
OM growth 3Y5.39%
OM growth 5Y-2.73%
PM growth 3Y4.15%
PM growth 5Y-10.51%
GM growth 3Y4.02%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LW is still creating some value.
Compared to 1 year ago, LW has less shares outstanding
LW has less shares outstanding than it did 5 years ago.
LW has a worse debt/assets ratio than last year.
2.2 Solvency
LW has an Altman-Z score of 2.95. This is not the best score and indicates that LW is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.95, LW is doing good in the industry, outperforming 63.95% of the companies in the same industry.
The Debt to FCF ratio of LW is 8.08, which is on the high side as it means it would take LW, 8.08 years of fcf income to pay off all of its debts.
LW has a Debt to FCF ratio of 8.08. This is in the better half of the industry: LW outperforms 65.12% of its industry peers.
LW has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LW (2.17) is worse than 87.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.35
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.49 indicates that LW should not have too much problems paying its short term obligations.
LW has a Current ratio (1.49) which is in line with its industry peers.
A Quick Ratio of 0.77 indicates that LW may have some problems paying its short term obligations.
The Quick ratio of LW (0.77) is worse than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for LW have decreased strongly by -18.99% in the last year.
The Earnings Per Share has been growing slightly by 6.09% on average over the past years.
LW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.00%.
LW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.21% yearly.
EPS 1Y (TTM)-18.99%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%1.37%
Revenue 1Y (TTM)0%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%0.31%
3.2 Future
The Earnings Per Share is expected to grow by 7.32% on average over the next years.
Based on estimates for the next years, LW will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-5.66%
EPS Next 2Y4.54%
EPS Next 3Y7.52%
EPS Next 5Y7.32%
Revenue Next Year2.5%
Revenue Next 2Y1.12%
Revenue Next 3Y1.84%
Revenue Next 5Y3.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.46, LW is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as LW.
The average S&P500 Price/Earnings ratio is at 26.83. LW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.86 indicates a rather expensive valuation of LW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 67.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LW to the average of the S&P500 Index (22.88), we can say LW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
LW's Enterprise Value to EBITDA is on the same level as the industry average.
LW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LW is cheaper than 70.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The decent profitability rating of LW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.19
EPS Next 2Y4.54%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, LW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.10, LW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, LW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
On average, the dividend of LW grows each year by 11.99%, which is quite nice.
LW has been paying a dividend for over 5 years, so it has already some track record.
LW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.99%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
LW pays out 70.35% of its income as dividend. This is not a sustainable payout ratio.
LW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.35%
EPS Next 2Y4.54%
EPS Next 3Y7.52%
65.57
-1 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners101.08%
Inst Owner Change-0.06%
Ins Owners2.27%
Ins Owner Change1.63%
Market Cap9.14B
Revenue(TTM)6.46B
Net Income(TTM)294.10M
Analysts75
Price Target66.24 (1.02%)
Short Float %2.99%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend1.46
Dividend Growth(5Y)11.99%
DP70.35%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.63%
Min EPS beat(2)29.94%
Max EPS beat(2)33.32%
EPS beat(4)3
Avg EPS beat(4)12.36%
Min EPS beat(4)-36.69%
Max EPS beat(4)33.32%
EPS beat(8)3
Avg EPS beat(8)-1.48%
EPS beat(12)7
Avg EPS beat(12)12.93%
EPS beat(16)11
Avg EPS beat(16)21.16%
Revenue beat(2)1
Avg Revenue beat(2)0.86%
Min Revenue beat(2)-0.58%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.28%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)5
Avg Revenue beat(16)-1.22%
PT rev (1m)0.15%
PT rev (3m)6.44%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-16.61%
EPS NY rev (1m)6.05%
EPS NY rev (3m)-10.62%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 17.86 | ||
| P/S | 1.42 | ||
| P/FCF | 18.6 | ||
| P/OCF | 10.27 | ||
| P/B | 5.11 | ||
| P/tB | 16.27 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)3.37
EY5.14%
EPS(NY)3.67
Fwd EY5.6%
FCF(TTM)3.53
FCFY5.38%
OCF(TTM)6.39
OCFY9.74%
SpS46.33
BVpS12.84
TBVpS4.03
PEG (NY)N/A
PEG (5Y)3.19
Graham Number31.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 16.43% | ||
| ROCE | 13.77% | ||
| ROIC | 9.69% | ||
| ROICexc | 9.84% | ||
| ROICexgc | 12.33% | ||
| OM | 12.75% | ||
| PM (TTM) | 4.56% | ||
| GM | 22.62% | ||
| FCFM | 7.61% |
ROA(3y)10.05%
ROA(5y)8.51%
ROE(3y)44.21%
ROE(5y)50.9%
ROIC(3y)11.49%
ROIC(5y)10.72%
ROICexc(3y)11.82%
ROICexc(5y)11.8%
ROICexgc(3y)14.91%
ROICexgc(5y)14.34%
ROCE(3y)16.55%
ROCE(5y)15.18%
ROICexgc growth 3Y-1.96%
ROICexgc growth 5Y-6.41%
ROICexc growth 3Y-4.75%
ROICexc growth 5Y-7.96%
OM growth 3Y5.39%
OM growth 5Y-2.73%
PM growth 3Y4.15%
PM growth 5Y-10.51%
GM growth 3Y4.02%
GM growth 5Y-0.65%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 8.08 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 96.73% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 72.04% | ||
| Profit Quality | 167.05% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.95 |
F-Score6
WACC7.2%
ROIC/WACC1.35
Cap/Depr(3y)272.82%
Cap/Depr(5y)212.89%
Cap/Sales(3y)13.17%
Cap/Sales(5y)10.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.99%
EPS 3Y17.33%
EPS 5Y6.09%
EPS Q2Q%1.37%
EPS Next Y-5.66%
EPS Next 2Y4.54%
EPS Next 3Y7.52%
EPS Next 5Y7.32%
Revenue 1Y (TTM)0%
Revenue growth 3Y16.32%
Revenue growth 5Y11.21%
Sales Q2Q%0.31%
Revenue Next Year2.5%
Revenue Next 2Y1.12%
Revenue Next 3Y1.84%
Revenue Next 5Y3.33%
EBIT growth 1Y-12.85%
EBIT growth 3Y22.59%
EBIT growth 5Y8.17%
EBIT Next Year48.88%
EBIT Next 3Y20.86%
EBIT Next 5Y15.58%
FCF growth 1Y3311.11%
FCF growth 3Y20.72%
FCF growth 5Y-11.68%
OCF growth 1Y-1.56%
OCF growth 3Y27.58%
OCF growth 5Y8.63%
LAMB WESTON HOLDINGS INC / LW FAQ
Can you provide the ChartMill fundamental rating for LAMB WESTON HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to LW.
What is the valuation status for LW stock?
ChartMill assigns a valuation rating of 4 / 10 to LAMB WESTON HOLDINGS INC (LW). This can be considered as Fairly Valued.
Can you provide the profitability details for LAMB WESTON HOLDINGS INC?
LAMB WESTON HOLDINGS INC (LW) has a profitability rating of 6 / 10.
What are the PE and PB ratios of LAMB WESTON HOLDINGS INC (LW) stock?
The Price/Earnings (PE) ratio for LAMB WESTON HOLDINGS INC (LW) is 19.46 and the Price/Book (PB) ratio is 5.11.
How financially healthy is LAMB WESTON HOLDINGS INC?
The financial health rating of LAMB WESTON HOLDINGS INC (LW) is 4 / 10.