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Lamb Weston HoldingsLW +0.96%88 Net-Net Working Capital is $-32.14 as of May. 2026. GuruFocus rates LW with a GF Score™ of 88/100 and a GF Value™ of $65.39 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 663 Consumer Packaged Goods companies, Lamb Weston Holdings ranks worse than 150829.41% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Lamb Weston Holdings's Net-Net Working Capital for the quarter that ended in May. 2026 was $-32.14.
The industry rank for Lamb Weston Holdings's Net-Net Working Capital or its related term are showing as below:
LW's Price-to-Net-Net-Working-Capital is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.75 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Lamb Weston Holdings (NYSE:LW) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Lamb Weston Holdings Net-Net Working Capital Related Terms
Lamb Weston Holdings Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Lamb Weston Holdings's Net-Net Working Capital 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.
Lamb Weston Holdings Net-Net Working Capital Chart
LW vs PPC, CAG, CPB: Net-Net Working Capital Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-32.14 mean?
Lamb Weston Holdings (LW) has a Net-Net Working Capital of $-32.14 as of May. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Lamb Weston Holdings According to the industry distribution chart, Lamb Weston Holdings ranks #999999 out of 663 companies in the Consumer Packaged Goods industry.
Is Lamb Weston Holdings' Net-Net Working Capital too high?
Lamb Weston Holdings' current Net-Net Working Capital is $-32.14. Based on the distribution chart, Lamb Weston Holdings ranks #999999 out of 663 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Lamb Weston Holdings has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Net-Net Working Capital compare to PPC and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #999999 out of 663 companies for Net-Net Working Capital. This places Lamb Weston Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 6.75. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Consumer Packaged Goods company?
The median Net-Net Working Capital among Consumer Packaged Goods companies is 6.75, based on 663 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Lamb Weston Holdings For the Consumer Packaged Goods industry, the median Net-Net Working Capital is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Net-Net Working Capital is $-32.14. 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?
Based on GuruFocus' analysis, Lamb Weston Holdings (LW) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.39, compared to a current price of $53.10 — trading 18.8% below its estimated fair value. The current Net-Net Working Capital is $-32.14. Lamb Weston Holdings' overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Lamb Weston Holdings (LW), the current Net-Net Working Capital is $-32.14 as of May. 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 (LW) Overvalued in 2026?
Based on GuruFocus' analysis, Lamb Weston Holdings stock appears to be undervalued.
The current stock price of $53.10 is trading 18.8% below its estimated GF Value™ of $65.39.
GuruFocus considers Lamb Weston Holdings to be Modestly Undervalued.
Key valuation signals for LW:
Net-Net Working Capital: $-32.14
GF Value™: $65.39 vs. price of $53.10 (18.8% below fair value)
No single metric tells the full story. See the LW 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.
88GF Score
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