Lamb Weston Holdings, Inc. (LW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

Darling Ingredients, Inc.

The J. M. Smucker Co.

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Mondelez International, Inc.

Kellanova

Ingredion, Inc.

Post Holdings, Inc.

Conagra Brands, Inc.

The Hershey Co.

Lamb Weston Holdings, Inc.

Why is Lamb Weston Holdings, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 8.52% of over the last 5 years

Negative results in May 25

INTEREST(9M) At USD 134.8 MM has Grown at 28.26%
ROCE(HY) Lowest at 20.26%
INTEREST COVERAGE RATIO(Q) Lowest at 623.98

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.53% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lamb Weston Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lamb Weston Holdings, Inc.

-15.04%

-0.69

43.84%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.76%

EBIT Growth (5y)

11.25%

EBIT to Interest (avg)

5.45

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

2.57

Sales to Capital Employed (avg)

1.13

Tax Ratio

33.45%

Dividend Payout Ratio

58.33%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

18.08%

ROE (avg)

57.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.36

EV to EBIT

12.21

EV to EBITDA

8.23

EV to Capital Employed

1.74

EV to Sales

1.51

PEG Ratio

Dividend Yield

3.65%

ROCE (Latest)

14.23%

ROE (Latest)

24.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 978.6 MM

DIVIDEND PER SHARE(HY)

Highest at USD 8.89

DIVIDEND PAYOUT RATIO(Y)

Highest at 98.04%

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 569.78

OPERATING PROFIT(Q)

Lowest at USD 256.4 MM

PRE-TAX PROFIT(Q)

At USD 126.1 MM has Fallen at -40.35%

NET PROFIT(Q)

At USD 81.98 MM has Fallen at -46.47%

RAW MATERIAL COST(Y)

Grown by 26.66% (YoY

CASH AND EQV(HY)

Lowest at USD 140.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.39 %

EPS(Q)

Lowest at USD 0.39

Here's what is working for Lamb Weston Holdings, Inc.

Dividend per share

Highest at USD 8.89 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 978.6 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 98.04%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Lamb Weston Holdings, Inc.

Interest Coverage Ratio

Lowest at 569.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 256.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (USD MM)

Pre-Tax Profit

At USD 126.1 MM has Fallen at -40.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 81.98 MM has Fallen at -46.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 16.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 0.39

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 140.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 26.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales