Lamb Weston Holdings, Inc. (LW) Financial Ratios
12 years of historical data (2014–2025) · Consumer Defensive · Packaged Foods
EV/EBITDA
↓
9.64
↓-40% vs avg
5yr avg: 16.08
30Y Low10.5·High21.3
P/FCF
↑
27.20
↓-62% vs avg
5yr avg: 71.51
30Y Low21.7·High147.6
P/B Ratio
↓
3.70
↓-75% vs avg
5yr avg: 15.09
30Y Low4.2·High36.8
ROE
↓
20.6%
↑-67% vs avg
5yr avg: 63.1%
30Y Low20%·High311%
Debt/EBITDA
↓
3.87
+6% vs avg
5yr avg: 3.67
30Y Low0.3·High4.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lamb Weston Holdings, Inc. trades at 18.0x earnings, 36% below its 5-year average of 28.3x, sitting at the 22nd percentile of its historical range. This is roughly in line with the Consumer Defensive sector median P/E of 18.8x. On a free-cash-flow basis, the stock trades at 27.2x P/FCF, 62% below the 5-year average of 71.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.3B | $7.2B | $13.0B | $15.9B | $9.9B | $12.1B | $8.8B | $8.7B | $9.4B | $6.8B | — |
| Enterprise Value | $10.3B | $11.3B | $16.8B | $19.1B | $12.1B | $14.1B | $11.0B | $11.0B | $11.7B | $9.2B | — |
| P/E Ratio → | 18.02 | 20.22 | 17.91 | 15.75 | 49.27 | 38.19 | 24.12 | 18.63 | 22.61 | 20.91 | — |
| P/S Ratio | 0.97 | 1.12 | 2.01 | 2.97 | 2.42 | 3.31 | 2.33 | 2.32 | 2.74 | 2.15 | — |
| P/B Ratio | 3.70 | 4.15 | 7.27 | 11.26 | 27.52 | 25.25 | 36.81 | — | — | — | — |
| P/FCF | 27.20 | 31.36 | — | 147.56 | 77.20 | 29.92 | 21.74 | 25.17 | 53.73 | 42.66 | — |
| P/OCF | 7.21 | 8.31 | 16.27 | 20.86 | 23.70 | 21.95 | 15.39 | 12.82 | 19.47 | 15.22 | — |
P/E links to full P/E history page with 30-year chart
LW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lamb Weston Holdings, Inc.'s enterprise value stands at 9.6x EBITDA, 40% below its 5-year average of 16.1x. The Consumer Defensive sector median is 11.0x, placing the stock at a 12% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.75 | 2.59 | 3.57 | 2.96 | 3.85 | 2.91 | 2.94 | 3.42 | 2.90 | — |
| EV / EBITDA | 9.64 | 10.53 | 12.22 | 17.27 | 19.08 | 21.31 | 14.93 | 13.29 | 16.17 | 14.62 | — |
| EV / EBIT | 15.55 | 16.99 | 15.74 | 21.63 | 27.33 | 29.73 | 19.82 | 16.52 | 20.17 | 17.70 | — |
| EV / FCF | — | 49.11 | — | 177.14 | 94.51 | 34.81 | 27.17 | 31.85 | 67.09 | 57.50 | — |
LW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lamb Weston Holdings, Inc. earns an operating margin of 10.3%, above the Consumer Defensive sector average of 3.5%. Operating margins have compressed from 16.5% to 10.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 20.6% indicates solid capital efficiency, compared to the sector median of 6.5%. ROIC of 8.6% represents adequate returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.7% | 21.7% | 27.3% | 26.8% | 20.3% | 22.7% | 23.6% | 26.7% | 25.7% | 24.6% | 22.1% |
| Operating Margin | 10.3% | 10.3% | 16.5% | 16.5% | 10.8% | 12.9% | 14.7% | 17.8% | 16.9% | 16.4% | 12.5% |
| Net Profit Margin | 5.5% | 5.5% | 11.2% | 18.9% | 4.9% | 8.7% | 9.6% | 12.7% | 12.2% | 10.3% | 9.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.6% | 20.3% | 45.4% | 113.9% | 47.8% | 88.2% | 310.9% | — | — | 86.8% | 20.7% |
| ROA | 4.8% | 4.8% | 10.4% | 18.9% | 4.8% | 7.2% | 9.5% | 16.5% | 15.9% | 14.1% | 13.5% |
| ROIC | 8.6% | 8.8% | 15.7% | 18.4% | 13.2% | 14.5% | 17.6% | 23.3% | 23.4% | 24.1% | 18.9% |
| ROCE | 11.2% | 11.4% | 19.5% | 20.5% | 12.6% | 13.1% | 18.2% | 28.3% | 27.9% | 28.2% | 21.9% |
LW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lamb Weston Holdings, Inc. carries a Debt/EBITDA ratio of 3.9x, which is moderately leveraged (11% above the sector average of 3.5x). Net debt stands at $4.1B ($4.2B total debt minus $71M cash). Interest coverage of 3.7x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.39 | 2.39 | 2.15 | 2.47 | 7.63 | 5.76 | 14.87 | — | — | — | 0.10 |
| Debt / EBITDA | 3.87 | 3.87 | 2.81 | 3.16 | 4.32 | 4.18 | 4.83 | 2.80 | 3.30 | 3.86 | 0.30 |
| Net Debt / Equity | — | 2.35 | 2.12 | 2.26 | 6.17 | 4.13 | 9.19 | — | — | — | 0.08 |
| Net Debt / EBITDA | 3.81 | 3.81 | 2.76 | 2.88 | 3.50 | 2.99 | 2.98 | 2.79 | 3.22 | 3.77 | 0.23 |
| Debt / FCF | — | 17.75 | — | 29.58 | 17.32 | 4.89 | 5.43 | 6.68 | 13.36 | 14.85 | 0.46 |
| Interest Coverage | 3.69 | 3.69 | 7.84 | 8.08 | 2.76 | 4.01 | 5.16 | 6.24 | 5.33 | 8.47 | 61.20 |
LW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.38x means Lamb Weston Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.68x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.56x to 1.38x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.38 | 1.38 | 1.29 | 1.56 | 2.37 | 2.88 | 2.25 | 1.74 | 1.79 | 1.55 | 1.90 |
| Quick Ratio | 0.68 | 0.68 | 0.59 | 0.88 | 1.55 | 2.05 | 1.77 | 0.84 | 0.73 | 0.60 | 0.69 |
| Cash Ratio | 0.05 | 0.05 | 0.04 | 0.22 | 0.75 | 1.27 | 1.33 | 0.02 | 0.11 | 0.10 | 0.09 |
| Asset Turnover | — | 0.87 | 0.88 | 0.82 | 0.99 | 0.87 | 0.81 | 1.23 | 1.24 | 1.27 | 1.39 |
| Inventory Turnover | 4.88 | 4.88 | 4.13 | 4.20 | 5.69 | 5.53 | 5.95 | 5.52 | 4.63 | 4.55 | 4.67 |
| Days Sales Outstanding | — | 44.22 | 41.97 | 49.40 | 39.83 | 36.48 | 32.93 | 33.05 | 24.08 | 21.34 | 22.74 |
LW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lamb Weston Holdings, Inc. returns 7.9% to shareholders annually — split between a 3.2% dividend yield and 4.7% buyback yield. A payout ratio of 57.9% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 5.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 2.9% | 1.3% | 0.9% | 1.4% | 1.1% | 1.4% | 1.3% | 1.2% | 12.5% | — |
| Payout Ratio | 57.9% | 57.9% | 24.0% | 14.5% | 68.9% | 42.6% | 33.2% | 23.7% | 26.4% | 260.3% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 4.9% | 5.6% | 6.3% | 2.0% | 2.6% | 4.1% | 5.4% | 4.4% | 4.8% | — |
| FCF Yield | 3.7% | 3.2% | — | 0.7% | 1.3% | 3.3% | 4.6% | 4.0% | 1.9% | 2.3% | — |
| Buyback Yield | 4.7% | 4.1% | 1.7% | 0.3% | 1.6% | 0.3% | 0.3% | 0.4% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 7.9% | 6.9% | 3.1% | 1.2% | 3.0% | 1.4% | 1.7% | 1.7% | 1.2% | 12.5% | — |
| Shares Outstanding | — | $143M | $146M | $145M | $146M | $147M | $147M | $147M | $147M | $147M | $146M |
Peer Comparison
Compare LW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LWYou | $6B | 18.0 | 9.6 | 27.2 | 21.7% | 10.3% | 20.6% | 8.6% | 3.9 |
 CAG | $6B | 5.5 | 8.3 | 4.8 | 25.9% | 11.8% | 12.9% | 6.0% | 4.7 |
 NOMD | $1B | 9.6 | 7.4 | 4.9 | 27.1% | 10.7% | 5.3% | 5.5% | 5.3 |
 SMPL | $1B | 12.4 | 6.0 | 8.0 | 35.1% | 15.1% | 5.9% | 8.1% | 1.3 |
 FRPT | $3B | 20.8 | 16.4 | 218.4 | 38.6% | 8.6% | 12.3% | 5.3% | 3.1 |
 SJM | $12B | -85.3 | 33.0 | 10.2 | 33.5% | 4.0% | -2.4% | 2.1% | 12.4 |
 MKC | $12B | 15.9 | 11.9 | 16.0 | 37.9% | 16.0% | 14.2% | 8.5% | 3.0 |
 HRL | $13B | 27.8 | 15.8 | 24.9 | 15.6% | 5.9% | 6.0% | 5.3% | 2.9 |
 CPB | $6B | 10.5 | 7.5 | 8.9 | 30.4% | 13.2% | 15.6% | 9.1% | 4.0 |
 GIS | $18B | 8.2 | 8.5 | 7.8 | 34.6% | 17.0% | 24.3% | 10.6% | 4.0 |
 MCD | $198B | 23.3 | 17.3 | 27.5 | 57.4% | 46.1% | — | 18.7% | 3.8 |
| Consumer Defensive Median | — | 18.8 | 11.0 | 15.3 | 40.8% | 3.5% | 6.5% | 5.7% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 12 years · Updated daily
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LW — Frequently Asked Questions
Quick answers to the most common questions about buying LW stock.
What is Lamb Weston Holdings, Inc.'s P/E ratio?
Lamb Weston Holdings, Inc.'s current P/E ratio is 18.0x. The historical average is 25.3x. This places it at the 22th percentile of its historical range.
What is Lamb Weston Holdings, Inc.'s EV/EBITDA?
Lamb Weston Holdings, Inc.'s current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.5x.
What is Lamb Weston Holdings, Inc.'s ROE?
Lamb Weston Holdings, Inc.'s return on equity (ROE) is 20.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 77.5%.
Is LW stock overvalued?
Based on historical data, Lamb Weston Holdings, Inc. is trading at a P/E of 18.0x. This is at the 22th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lamb Weston Holdings, Inc.'s dividend yield?
Lamb Weston Holdings, Inc.'s current dividend yield is 3.22% with a payout ratio of 57.9%.
What are Lamb Weston Holdings, Inc.'s profit margins?
Lamb Weston Holdings, Inc. has 21.7% gross margin and 10.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Lamb Weston Holdings, Inc. have?
Lamb Weston Holdings, Inc.'s Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.