Lamb Weston Holdings, Inc.LW
NYSE•Consumer Defensive•Packaged Foods
Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. It sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to quick service and full-service restaurants and chains, wholesale, grocery, mass merchants, club retailers, and specialty retailers, as well as foodservice distributors and institutions, including businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.
Lamb Weston Holdings, Inc. (LW) reported trailing twelve months revenue of $6.52B as of February 2026, a 2.0% increase year-over-year. Quarterly revenue reached $1.56B, reflecting continued top-line momentum.
Lamb Weston Holdings, Inc. generated $300.30M in TTM net income, with quarterly EBITDA of $126.60M. The operating margin contracted from 16.4% to 8.1%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (8.1%) and net margin (3.5%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 9.6% a year ago, reflecting increased costs or interest expense.
LW trades at a P/E of 22.4x (in line with broad market averages) and a P/S of 1.0x. The price-to-book ratio of 3.7x reflects a moderate premium to book value.
The company reported negative free cash flow of $-36.30M, indicating cash consumption over the period. The balance sheet shows $7.39B in total assets with $3.64B in long-term debt against $1.83B in stockholders equity for a debt-to-equity ratio of 2.0. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~10.1% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 24.4% suggests a durable competitive advantage and efficient capital allocation.
5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 14.5% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 2.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Shares decreased 3.9% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation