Lamb Weston Holdings Inc (LW) Stock Analysis
Verdict: WATCH (do not buy)
Cost-inflation recovery and EPS surprise strength are offset by a 3.95x Net Debt/EBITDA leverage ratio and compressed gross margins.
Investment score: 50/100
Analysis as of
Is Lamb Weston Holdings Inc stock worth reviewing? The TradeMates thesis
The AI model rate Lamb Weston as a HOLD (Investment Score 50/100). Severe margin compression and a high debt load are balanced by consistent earnings execution and recovering free cash flows.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 42/100 (weight 15%)
- Earnings Quality: 72/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Lamb Weston Holdings Inc opportunities and risks
What speaks for LW
- Consistent Earnings Beats
What speaks against LW
- Elevated Debt Burden (Net Debt/EBITDA 3.95x)
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LW | 22.8x | 1.0x | 10.7x | 20.6% | 4.4% | 9.7% |
| SJM | 56.3x | 1.4x | 14.8x | 38.7% | 2.5% | 12.3% |
| HRL | 32.7x | 0.9x | 15.3x | 15.7% | 2.8% | 6.9% |
| SFD | 7.5x | 0.5x | 5.5x | 13.2% | 6.9% | 10.1% |
| PPC | 13.1x | 0.4x | 6.9x | 9.6% | 3.0% | 4.2% |
| CAG | n/a | 0.6x | n/a | 23.9% | -17.0% | 14.0% |
| Peer median | 13.1x | 0.6x | 6.9x | 15.7% | 2.8% | 10.1% |
Frequently asked questions about Lamb Weston Holdings Inc (LW)
Is LW stock a good investment?
The TradeMates model rates Lamb Weston Holdings Inc as WATCH (do not buy) with an investment score of 50/100. The AI model rate Lamb Weston as a HOLD (Investment Score 50/100). Severe margin compression and a high debt load are balanced by consistent earnings execution and recovering free cash flows. This is algorithmic model output, not personal investment advice.
Is LW stock a buy?
The TradeMates model verdict for LW is WATCH (do not buy) with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.