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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

Ingredion, Inc.

The J. M. Smucker Co.

Kellanova

Mondelez International, Inc.

Conagra Brands, Inc.

Post Holdings, Inc.

Darling Ingredients, Inc.

The Hershey Co.

International Flavors & Fragrances, Inc.

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 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.83% 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.

-23.34%

-0.67

43.86%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.21%

EBIT Growth (5y)

8.52%

EBIT to Interest (avg)

5.45

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

2.57

Sales to Capital Employed (avg)

1.14

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

4.91

EV to EBIT

13.57

EV to EBITDA

9.46

EV to Capital Employed

2.09

EV to Sales

1.91

PEG Ratio

Dividend Yield

2.66%

ROCE (Latest)

15.43%

ROE (Latest)

35.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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 868.3 MM

DIVIDEND PER SHARE(HY)

Highest at USD 8.46

NET SALES(Q)

Highest at USD 1,675.8 MM

-13What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 24.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.46 times

OPERATING PROFIT(Q)

Lowest at USD 275.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.46 %

PRE-TAX PROFIT(Q)

Lowest at USD 142.5 MM

NET PROFIT(Q)

Lowest at USD 120.66 MM

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

Operating Cash Flow

Highest at USD 868.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 1,675.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 8.46

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

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

Interest Coverage Ratio

Lowest at 623.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 134.8 MM has Grown at 28.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 275.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 16.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 142.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -28.86%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 120.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 8.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.5% (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