LAMB WESTON HOLDINGS INC (LW)
US5132721045 - Common Stock
LW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. LW scores excellent on profitability, but there are concerns on its financial health. LW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LW had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 8.23%, LW belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.66%, LW belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.94%, LW belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LW is above the industry average of 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 33.66% | ||
| ROIC | 10.94% |
ROA(3y)10.06%
ROA(5y)9.11%
ROE(3y)55.93%
ROE(5y)77.28%
ROIC(3y)11.5%
ROIC(5y)10.81%
1.3 Margins
Looking at the Profit Margin, with a value of 9.57%, LW belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
In the last couple of years the Profit Margin of LW has declined.
The Operating Margin of LW (14.63%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of LW has remained more or less at the same level.
LW has a Gross Margin (25.14%) which 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 | 14.63% | ||
| PM (TTM) | 9.57% | ||
| GM | 25.14% |
OM growth 3Y8.95%
OM growth 5Y-1.27%
PM growth 3Y9.02%
PM growth 5Y-2.07%
GM growth 3Y6.42%
GM growth 5Y0.45%
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.
LW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LW has been reduced compared to 5 years ago.
LW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.09 indicates that LW is not in any danger for bankruptcy at the moment.
LW's Altman-Z score of 3.09 is fine compared to the rest of the industry. LW outperforms 67.78% of its industry peers.
LW has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
LW's Debt to Equity ratio of 2.16 is on the low side compared to the rest of the industry. LW is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.09 |
ROIC/WACC1.41
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.19 indicates that LW should not have too much problems paying its short term obligations.
LW has a Current ratio of 1.19. This is in the lower half of the industry: LW underperforms 66.67% of its industry peers.
A Quick Ratio of 0.54 indicates that LW may have some problems paying its short term obligations.
LW has a worse Quick ratio (0.54) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for LW have decreased strongly by -25.18% in the last year.
Measured over the past years, LW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.46% on average per year.
LW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
Measured over the past years, LW shows a quite strong growth in Revenue. The Revenue has been growing by 11.48% on average per year.
EPS 1Y (TTM)-25.18%
EPS 3Y32.81%
EPS 5Y9.46%
EPS Q2Q%-55.21%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y20.78%
Revenue growth 5Y11.48%
Sales Q2Q%-0.67%
3.2 Future
The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y-13.61%
EPS Next 2Y0.65%
EPS Next 3Y2.74%
EPS Next 5Y8.77%
Revenue Next Year1.5%
Revenue Next 2Y2.91%
Revenue Next 3Y3.25%
Revenue Next 5Y5.28%
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 stable.
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
A Price/Earnings ratio of 19.79 indicates a rather expensive valuation of LW.
Compared to the rest of the industry, the Price/Earnings ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 65.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.77. LW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.06, which indicates a correct valuation of LW.
75.56% of the companies in the same industry are more expensive than LW, based on the Price/Forward Earnings ratio.
LW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LW indicates a somewhat cheap valuation: LW is cheaper than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The decent profitability rating of LW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.09
EPS Next 2Y0.65%
EPS Next 3Y2.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, LW has a reasonable but not impressive dividend return.
LW's Dividend Yield is a higher than the industry average which is at 3.66.
LW's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of LW is nicely growing with an annual growth rate of 9.19%!
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)9.19%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
LW pays out 29.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of LW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.91%
EPS Next 2Y0.65%
EPS Next 3Y2.74%
LAMB WESTON HOLDINGS INC
NYSE:LW (12/17/2024, 9:14:29 PM)
Premarket: 81.18 -1.14 (-1.38%)82.32
+0.11 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.74B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | 16.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 33.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.63% | ||
| PM (TTM) | 9.57% | ||
| GM | 25.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-25.18%
EPS 3Y32.81%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.61%
Revenue growth 3Y20.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y