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Lamb Weston Holdings has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lamb Weston Holdings's Interest Coverage for the quarter that ended in May. 2026 was 3.75.
Lamb Weston Holdings's debt to revenue ratio for the quarter that ended in May. 2026 was 0.56.
As of today, Lamb Weston Holdings's Altman Z-Score is 2.55.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lamb Weston Holdings has the Financial Strength Rank of 4.
Lamb Weston Holdings Financial Strength Related Terms
LW vs PPC, CAG, CPB: Financial Strength Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Lamb Weston Holdings has a Z-score of 2.55, indicating it is in Grey Zones. This implies that Lamb Weston Holdings is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.55 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 (LW) has a Financial Strength of 4 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lamb Weston Holdings and its competitors. This is 20% below median its historical median of 5.00. Over the past decade, Lamb Weston Holdings' Financial Strength has ranged from 4.00 to 6.00.
Is Lamb Weston Holdings' Financial Strength too high?
Lamb Weston Holdings' current Financial Strength of 4 is 20% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 6.00. Overall, Lamb Weston Holdings has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Financial Strength compare to PPC and CAG?
Lamb Weston Holdings' Financial Strength of 4 can be compared against companies in the Consumer Packaged Goods industry. Historically, Lamb Weston Holdings' own Financial Strength has ranged from 4.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Consumer Packaged Goods company?
A good Financial Strength depends on the Consumer Packaged Goods industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lamb Weston Holdings and its competitors. Lamb Weston Holdings's current Financial Strength is 4, which is 20% below median its own 10-year median of 5.00. 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 $49.87 — trading 23.7% below its estimated fair value. The current Financial Strength is 4, which is 20% below median its 10-year median of 5.00. Lamb Weston Holdings' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Lamb Weston Holdings (LW), the current Financial Strength is 4 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 $49.87 is trading 23.7% below its estimated GF Value™ of $65.39.
GuruFocus considers Lamb Weston Holdings to be Modestly Undervalued.
Key valuation signals for LW:
Financial Strength: 4 (20% below median its 10-year median of 5.00)
GF Value™: $65.39 vs. price of $49.87 (23.7% 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.
86GF Score
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