Reading the tape
NYSE: LW
Lamb Weston Holdings, Inc.
Consumer Defensive · Packaged Foods
Market Cap
$5.80B
52w High
$67.07
52w Low
$37.62
P/E
19.45
Volume
802.58K
Outstanding Shares
138.07M
Price vs Fundamentals
Why The Stock Is Moving
Likely multiple compressionModerate confidence
1Y Price: -18.36%Revenue (TTM): 2.04%FCF (TTM): 641.87%P/FCF: 0th pct
What changed
The stock fell 18.36% over the last year. Revenue grew 2.04% over the trailing twelve months. Operating margin moved from 10.83% to 9.33%. Free cash flow grew 641.87% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price, and the shares now sit around the 0th percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.
What would invalidate this read
This read changes if operating margin (currently 9.33%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide.
CEOMichael Jared Smith
SectorConsumer Defensive
IndustryPackaged Foods
Employees10,700
IPO dateNov 10, 2016
Valuation
Forward P/E—
EV/EBITDA10.51
Enterprise value$11.27B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth2.91%
Gross margin20.57%▼20.64%vs FY2024
Operating margin9.33%▼37.41%vs FY2024
ROE20.56%▼49.35%vs FY2024
Analyst consensus
RatingHold
Target price$49.60▲18.07%
6
Buy
10
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 22, 2026
Q3 FY26 · EPS est $0.61 · Revenue est $1.69B
View
Dividends
$1.50/shareQuarterly8yr growth streakAdequateLW pays a dividend with a 3.57% dividend yield, 8 consecutive years of growth, growing at 10.03% annually, covered 1.1× by free cash flow.
Dividend Yield
3.57%
Annual Div / Share
$1.50
5yr CAGR
+10.03%
Doubles every ~7.2yr
Payout Ratio
68.9%
Adequate
Dividend Growth Rate
3yr CAGR
+12.62%
5yr CAGR
+10.03%
Dividend Safety
5/10Adequate
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$1.50+2.7%
2025$1.46+14.1%
2024$1.28+21.9%
2023$1.05+9.4%
2022$0.96+3.2%
2021$0.93+8.1%
2020$0.86+9.9%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$36/yr
$3/mo
In 5 yrs
$58/yr+61%
$5/mo
In 10 yrs
$93/yr+160%
$8/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$36/yr $3/mo | $58/yr+61% $5/mo | $93/yr+160% $8/mo |
Yield-on-cost grows from 3.57% → 9.29% over 10yr
Analysis
Dividend Strengths
Strong dividend growth rate
The 5-year CAGR of 10.03% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.