LWLamb Weston Holdings, Inc.
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (2.3×), 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. Conversion is improving vs a year ago.
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 18% = 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 8.2% 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% · 0.77 points below what the capital costs: growth destroys value
- Operating margin
- 8.9%
Operating margin · Packaged Foods median 7.6% · 12 months to Q4 2026
- Cash conversion
- 2.30×
Cash conversion · 1.83× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 21%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 11% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 10% |
| FY2026 | 8.9% |
Details›
- Gross margin12 months to Q4 2026
- 21%
- Operating margin12 months to Q4 2026
- 8.9%
- Net margin12 months to Q4 2026
- 4.4%
- Free cash flow margin
- 8.2%
- Revenue, trailing twelve months
- $6.61B
- Free cash flow, trailing twelve months
- $540M
- Net income, trailing twelve months
- $290M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.