📊 LW Key Takeaways
Is LW a Good Investment? Thesis Analysis
Lamb Weston demonstrates solid operational execution with strong free cash flow generation ($375.4M) and excellent interest coverage (35.6x), indicating financial stability despite a significant 50.8% net income decline YoY. However, flat revenue growth combined with margin compression and declining profitability raise concerns about business momentum, suggesting a mature, capital-intensive business facing headwinds.
Why Buy LW? Key Strengths
- Strong free cash flow of $375.4M with 11.5% FCF margin supports debt service and capital allocation flexibility
- Excellent interest coverage ratio of 35.6x indicates very low financial distress risk despite high leverage
- Consistent operating cash generation of $530.4M demonstrates reliable cash earnings despite bottom-line pressure
- Reasonable current ratio of 1.43x provides adequate short-term liquidity coverage
LW Investment Risks to Consider
- Net income declined 50.8% YoY with diluted EPS down 49.8%, indicating severe profitability deterioration
- Flat revenue growth (0.0% YoY) combined with declining margins suggests loss of pricing power or volume pressure
- High leverage with 2.13x debt/equity ratio and $3.7B long-term debt limits financial flexibility despite strong coverage
- Thin net margin of 3.9% and weak ROE of 7.2% reflect low returns on shareholder capital in a competitive commodity-like industry
- Quick ratio of 0.64x is weak, indicating potential working capital stress and reliance on inventory conversion
Key Metrics to Watch
- Quarterly revenue trend and market share dynamics to assess whether flat growth reflects market conditions or company-specific issues
- Operating margin trajectory and gross margin sustainability amid input cost pressures
- Free cash flow sustainability and debt reduction capacity given the current profitability headwinds
- Insider buying/selling patterns given 8 Form 4 filings in last 90 days
LW Financial Metrics
💡 AI Analyst Insight
Lamb Weston Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LW Profitability Ratios
LW vs Consumer Sector
How Lamb Weston Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LW Overvalued or Undervalued?
Based on fundamental analysis, Lamb Weston Holdings, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LW Balance Sheet & Liquidity
LW 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Lamb Weston Holdings, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $6.95 reflects profitable operations.
LW Growth Metrics (YoY)
LW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.6B | -$36.1M | $-0.25 |
| Q1 2026 | $1.7B | $64.3M | $0.46 |
| Q3 2025 | $1.5B | $146.0M | $1.01 |
| Q2 2025 | $1.6B | -$36.1M | $-0.25 |
| Q1 2025 | $1.7B | $127.4M | $0.88 |
| Q3 2024 | $1.3B | $146.1M | $1.01 |
| Q2 2024 | $1.3B | $103.1M | $0.71 |
| Q1 2024 | $1.1B | $231.9M | $1.60 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LW Capital Allocation
LW SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Lamb Weston Holdings, Inc. (CIK: 0001679273)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Feb 6, 2026 | 4 | xslF345X05/form4-02062026_100204.xml | View → |
| Feb 6, 2026 | 4 | xslF345X05/form4-02062026_100220.xml | View → |
| Feb 6, 2026 | 4 | xslF345X05/form4-02062026_100242.xml | View → |
| Feb 6, 2026 | 4 | xslF345X05/form4-02062026_100208.xml | View → |
| Feb 6, 2026 | 4 | xslF345X05/form4-02062026_100221.xml | View → |
❓ Frequently Asked Questions about LW
What is the AI rating for LW?
Lamb Weston Holdings, Inc. (LW) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LW's key strengths?
Claude: Strong free cash flow of $375.4M with 11.5% FCF margin supports debt service and capital allocation flexibility. Excellent interest coverage ratio of 35.6x indicates very low financial distress risk despite high leverage.
What are the risks of investing in LW?
Claude: Net income declined 50.8% YoY with diluted EPS down 49.8%, indicating severe profitability deterioration. Flat revenue growth (0.0% YoY) combined with declining margins suggests loss of pricing power or volume pressure.
What is LW's revenue and growth?
Lamb Weston Holdings, Inc. reported revenue of $3.3B.
Does LW pay dividends?
Lamb Weston Holdings, Inc. pays dividends, with $103.3M distributed to shareholders in the trailing twelve months.
Where can I find LW SEC filings?
Official SEC filings for Lamb Weston Holdings, Inc. (CIK: 0001679273) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LW's EPS?
Lamb Weston Holdings, Inc. has a diluted EPS of $0.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lamb Weston Holdings, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LW stock overvalued or undervalued?
Valuation metrics for LW: ROE of 7.2% (sector avg: 18%), net margin of 3.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy LW stock in 2026?
Our dual AI analysis gives Lamb Weston Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LW's free cash flow?
Lamb Weston Holdings, Inc.'s operating cash flow is $530.4M, with capital expenditures of $155.0M. FCF margin is 11.5%.
How does LW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.9% (avg: 8%), ROE 7.2% (avg: 18%), current ratio 1.43 (avg: 1.5).