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. The company was incorporated in 1950 and is headquartered in Eagle, Idaho.
Activist Potential | Delve into the implications of potential activist investor involvement, which could drive positive changes in corporate strategy and governance |
Strategic Maneuvers | Explore Lamb Weston's capacity reduction initiatives aimed at improving utilization rates and fostering a more rational pricing environment |
Financial Outlook | Analysts project an 11.3% total return, with an 8.8% share price increase and 2.5% dividend yield, despite lowered EPS estimates for FY25 and FY26 |
Industry Headwinds | Lamb Weston grapples with overcapacity and price competition in the frozen potato industry, impacting profitability and market dynamics |
Metrics to compare | LW | Sector Sector - Average of metrics from a broad group of related Consumer Non-Cyclicals sector companies | Relationship RelationshipLWPeersSector | |
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P/E Ratio | 23.7x | 11.6x | 11.7x | |
PEG Ratio | −0.36 | 20.94 | 0.03 | |
Price / Book | 5.3x | 2.9x | 1.5x | |
Price / LTM Sales | 1.4x | 1.0x | 0.9x | |
Upside (Analyst Target) | 10.0% | 0.0% | 23.5% | |
Fair Value Upside | Unlock | 20.8% | 10.0% | Unlock |