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.
Strategic Capacity Cut | Lamb Weston's decision to reduce North American potato processing capacity aims to optimize utilization rates, potentially enhancing pricing power and profitability |
Activist Investor Buzz | Potential activist involvement could drive strategic changes, establishing a new support level for shares and potentially unlocking shareholder value |
Market Dynamics | Explore how Lamb Weston navigates subdued QSR traffic trends and industry supply-demand imbalances, with analysts projecting improved performance in FY25's latter half |
Financial Outlook | Analysts maintain an "Overweight" rating with price targets ranging from $70 to $96, despite recent underperformance and challenges in meeting FY25 expectations |
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 | 23.3x | 11.6x | 11.6x | |
PEG Ratio | −0.35 | 20.94 | 0.03 | |
Price/Book | 5.2x | 2.9x | 1.5x | |
Price / LTM Sales | 1.3x | 1.0x | 0.9x | |
Upside (Analyst Target) | 12.4% | 0.0% | 24.2% | |
Fair Value Upside | Unlock | 20.8% | 10.1% | Unlock |