Lamb Weston Holdings, Inc. (LW)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry modest debt, and sell at a sensible price. Lamb Weston is a consumer-defensive frozen-potato processor with recognized brands and private-label relationships, which can create habitual demand. But the numbers have weakened. In fiscal 2026, the year ended 2026-05-31, revenue was $6.6B, net income $290.0M, and diluted EPS $2.08. That compares with fiscal 2025, the year ended 2025-05-25, when revenue was $6.5B, net income $357.2M, and diluted EPS $2.50. Two years earlier, in fiscal 2024, the year ended 2024-05-26, net income was $725.5M and EPS $4.98. The latest filed quarter is worse: in fiscal Q1 2027, the quarter ended 2026-08-30, revenue was $1.7B, net income $29.1M, and diluted EPS $0.21, versus fiscal Q1 2026, the quarter ended 2025-08-24, when net income was $64.3M and EPS $0.46. FairStock classifies it as a SLOW GROWER — Shrinking, citing profit -1.8% a year over five years and revenue 12.5%. At the $51.96 close on 2026-10-13, FairStock calculates P/E 24.98, P/B 3.91, ROE 16.28%, ROCE 6.03%, D/E 2.21, and EV/EBITDA 11.17. The FCF yield is 7.5% and dividend yield 3.26%, but the Graham Number is $24.93, leaving a -108.42% margin of safety. Piotroski is 7/9, while Altman Z is 1.75 and FairStock score 43/100. A modest moat may exist, but debt is heavy and returns on capital are not exceptional. The price does not compensate for the declining earnings.

In plain English: Lamb Weston makes frozen potato products such as fries and appetizers for restaurants, stores, and food-service customers. The business still sells billions of dollars of products and generates cash, but profits have fallen sharply over the past few years. At the recent price, the shares look expensive compared with the company's current earnings and accounting value, even though the dividend and cash flow offer some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-30) · fiscal Q3 2026 10-Q (period ended 2026-02-22) · fiscal Q2 2026 10-Q (period ended 2025-11-23) · fiscal Q1 2026 10-Q (period ended 2025-08-24) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-25) · FY2024 10-K (period ended 2024-05-26)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer