Lamb Weston HoldingsBSP:L1WH34 79 Gross Margin % is 21.19% as of Feb. 2026, which is 12% below its 10-year median of 24.10. GuruFocus rates BSP:L1WH34 with a GF Score™ of 79/100 and a GF Value™ of R$177.56. The stock has 4 warning signs investors should review. Among 1,899 Consumer Packaged Goods companies, Lamb Weston Holdings ranks worse than 63.03% on this metric.
The historical rank and industry rank for Lamb Weston Holdings's Gross Margin % or its related term are showing as below:
BSP:L1WH34'
s Gross Margin % Range Over the Past 10 Years
Min: 20.3 Med: 24.1 Max: 27.32
Current: 20.57
During the past 12 years, the highestGross Margin % of Lamb Weston Holdings was 27.32%. The lowest was 20.30%. And the median was 24.10%.
BSP:L1WH34's Gross Margin % is ranked worse than 63.03% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs BSP:L1WH34: 20.57
Lamb Weston Holdings had a gross margin of 21.19% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lamb Weston Holdings was 1.20% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lamb Weston Holdings had a gross margin of 21.19% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lamb Weston Holdings Gross Margin % Related Terms
Lamb Weston Holdings Gross Margin % Historical Data
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The historical data trend for Lamb Weston Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:L1WH34 vs INGR, CAG, CPB: Gross Margin % Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lamb Weston Holdings Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lamb Weston Holdings (BSP:L1WH34) has a Gross Margin % of 21.19% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lamb Weston Holdings and its competitors. This is 12% below median its historical median of 24.10. Over the past decade, Lamb Weston Holdings' Gross Margin % has ranged from 20.30 to 27.32. According to the industry distribution chart, Lamb Weston Holdings ranks #1197 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 63%.
Is Lamb Weston Holdings' Gross Margin % too high?
Lamb Weston Holdings' current Gross Margin % of 21.19% is 12% below median its 10-year median of 24.10. Over the past 10 years, this metric has ranged from a low of 20.30 to a high of 27.32. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Lamb Weston Holdings' value of 21.19% is 19.6% below this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #1197 out of 1899 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Lamb Weston Holdings has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Gross Margin % compare to INGR and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #1197 out of 1899 companies for Gross Margin %. This places Lamb Weston Holdings in the lower half of its industry. The industry median Gross Margin % is 26.37. Lamb Weston Holdings' value of 21.19% is 19.6% below this benchmark. Historically, Lamb Weston Holdings' own Gross Margin % has ranged from 20.30 to 27.32 over the past decade. While the company's 10-year median is 24.10 vs. the industry median of 26.37, Lamb Weston Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,899 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lamb Weston Holdings's current Gross Margin % of 21.19% is 19.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Gross Margin % is 21.19%, which is 12% below median its own 10-year median of 24.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lamb Weston Holdings stock overvalued right now?
Lamb Weston Holdings (BSP:L1WH34) has a current Gross Margin % of 21.19%. The stock's GF Value™ is R$177.56, compared to a current price of R$115.81 — trading 34.8% below its estimated fair value. The current Gross Margin % is 21.19%, which is 12% below median its 10-year median of 24.10 and 19.6% below the Consumer Packaged Goods industry median of 26.37. Lamb Weston Holdings' overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lamb Weston Holdings (BSP:L1WH34), the current Gross Margin % is 21.19% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lamb Weston Holdings (BSP:L1WH34) Overvalued in 2026?
Based on GuruFocus' analysis, Lamb Weston Holdings stock appears to be undervalued.
The current stock price of R$115.81 is trading 34.8% below its estimated GF Value™ of R$177.56.
Key valuation signals for BSP:L1WH34:
Gross Margin %: 21.19% (12% below median its 10-year median of 24.10)
GF Value™: R$177.56 vs. price of R$115.81 (34.8% below fair value)
Industry Position: 19.6% below the Consumer Packaged Goods median (#1197 of 1899)
No single metric tells the full story. See the BSP:L1WH34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by french fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Roughly two thirds of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single-largest customer at 15% of fiscal 2025 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
79GF Score
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