Lamb Weston HoldingsBSP:L1WH34 77 Operating Margin % is 11.17% as of Feb. 2026, which is 28% below its 10-year median of 15.52. GuruFocus rates BSP:L1WH34 with a GF Score™ of 77/100 and a GF Value™ of R$182.53. The stock has 4 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Lamb Weston Holdings ranks better than 74.99% on this metric.
Lamb Weston Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lamb Weston Holdings's Operating Margin % or its related term are showing as below:
BSP:L1WH34'
s Operating Margin % Range Over the Past 10 Years
Min: 10.84 Med: 15.52 Max: 17.79
Current: 11.02
BSP:L1WH34's Operating Margin % is ranked better than 74.99% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs BSP:L1WH34: 11.02
Lamb Weston Holdings's 5-Year Average Operating Margin % Growth Rate was 0.20% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Lamb Weston Holdings Operating Margin % Related Terms
Lamb Weston Holdings Operating Margin % Historical Data
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The historical data trend for Lamb Weston Holdings's Operating 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 CPB, CAG, INGR: Operating Margin % Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lamb Weston Holdings's Operating Margin % for the fiscal year that ended in May. 2025 is calculated as
* 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 (BSP:L1WH34) has a Operating Margin % of 11.17% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lamb Weston Holdings and its competitors. This is 28% below median its historical median of 15.52. Over the past decade, Lamb Weston Holdings' Operating Margin % has ranged from 10.84 to 17.79. According to the industry distribution chart, Lamb Weston Holdings ranks #488 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 25%.
Is Lamb Weston Holdings' Operating Margin % too high?
Lamb Weston Holdings' current Operating Margin % of 11.17% is 28% below median its 10-year median of 15.52. Over the past 10 years, this metric has ranged from a low of 10.84 to a high of 17.79. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Lamb Weston Holdings' value of 11.17% is 112.4% above this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #488 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Lamb Weston Holdings has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Operating Margin % compare to CPB and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #488 out of 1951 companies for Operating Margin %. This places Lamb Weston Holdings in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Lamb Weston Holdings' value of 11.17% is 112.4% above this benchmark. Historically, Lamb Weston Holdings' own Operating Margin % has ranged from 10.84 to 17.79 over the past decade. While the company's 10-year median is 15.52 vs. the industry median of 5.26, Lamb Weston Holdings has consistently been above 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 Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lamb Weston Holdings's current Operating Margin % of 11.17% is 112.4% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Operating Margin % is 11.17%, which is 28% below median its own 10-year median of 15.52. 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 Operating Margin % of 11.17%. The stock's GF Value™ is R$182.53, compared to a current price of R$115.81 — trading 36.6% below its estimated fair value. The current Operating Margin % is 11.17%, which is 28% below median its 10-year median of 15.52 and 112.4% above the Consumer Packaged Goods industry median of 5.26. Lamb Weston Holdings' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Lamb Weston Holdings (BSP:L1WH34), the current Operating Margin % is 11.17% 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 36.6% below its estimated GF Value™ of R$182.53.
Key valuation signals for BSP:L1WH34:
Operating Margin %: 11.17% (28% below median its 10-year median of 15.52)
GF Value™: R$182.53 vs. price of R$115.81 (36.6% below fair value)
Industry Position: 112.4% above the Consumer Packaged Goods median (#488 of 1951)
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.
77GF Score
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