LWLamb Weston Holdings, Inc.
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (2.2×), but margins compressing and returns that lean on debt.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LW?
Lamb Weston Holdings, Inc. earns 7.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.7 points below what the capital costs: growth destroys value
- Operating margin
- 7.8%
Operating margin · Packaged Foods median 7.7% · 12 months to Q1 2027
- Cash conversion
- 2.21×
Cash conversion · 2.16× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 11% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 10% |
| FY2026 | 8.9% |
Details›
- Gross margin12 months to Q1 2027
- 19%
- Operating margin12 months to Q1 2027
- 7.8%
- Net margin12 months to Q1 2027
- 3.9%
- Free cash flow margin
- 6.2%
- Revenue, trailing twelve months
- $6.62B
- Free cash flow, trailing twelve months
- $412M
- Net income, trailing twelve months
- $255M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from LW and who it buys from, as the companies report it.
- MCDMcDonald's15%
Share of revenue · FY2026 10-K
- Ten largest customers50%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; LW’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.