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Lamb Weston HoldingsMEX:LW 78 Return-on-Tangible-Asset is 7.37% as of May. 2026, which is 36% below its 10-year median of 11.53. GuruFocus rates MEX:LW with a GF Score™ of 78/100 and a GF Value™ of MXN1,025.65 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,996 Consumer Packaged Goods companies, Lamb Weston Holdings ranks better than 57.57% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lamb Weston Holdings's annualizedNet Income for the quarter that ended in May. 2026 was MXN7,606 Mil. Lamb Weston Holdings's average total tangible assets for the quarter that ended in May. 2026 was MXN103,163 Mil. Therefore, Lamb Weston Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 7.37%.
The historical rank and industry rank for Lamb Weston Holdings's Return-on-Tangible-Asset or its related term are showing as below:
MEX:LW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.86 Med: 11.53 Max: 22.04
Current: 4.89
During the past 13 years, Lamb Weston Holdings's highest Return-on-Tangible-Asset was 22.04%. The lowest was 4.86%. And the median was 11.53%.
MEX:LW's Return-on-Tangible-Asset is ranked better than 57.57% of 1996
companies
in the Consumer Packaged Goods industry
Industry Median: 3.485
vs MEX:LW: 4.89
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Lamb Weston Holdings Return-on-Tangible-Asset Related Terms
Lamb Weston Holdings Return-on-Tangible-Asset Historical Data
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The historical data trend for Lamb Weston Holdings's Return-on-Tangible-Asset 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.
MEX:LW vs PPC, CAG, CPB: Return-on-Tangible-Asset Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Return-on-Tangible-Asset 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 the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.37% mean?
Lamb Weston Holdings (MEX:LW) has a Return-on-Tangible-Asset of 7.37% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lamb Weston Holdings and its competitors. This is 36% below median its historical median of 11.53. Over the past decade, Lamb Weston Holdings' Return-on-Tangible-Asset has ranged from 4.86 to 22.04. According to the industry distribution chart, Lamb Weston Holdings ranks #847 out of 1996 companies in the Consumer Packaged Goods industry, placing it in the top 42.4%.
Is Lamb Weston Holdings' Return-on-Tangible-Asset too high?
Lamb Weston Holdings' current Return-on-Tangible-Asset of 7.37% is 36% below median its 10-year median of 11.53. Over the past 10 years, this metric has ranged from a low of 4.86 to a high of 22.04. The Consumer Packaged Goods industry median Return-on-Tangible-Asset is 3.49. Lamb Weston Holdings' value of 7.37% is 111.5% above this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #847 out of 1996 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lamb Weston Holdings has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Return-on-Tangible-Asset compare to PPC and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #847 out of 1996 companies for Return-on-Tangible-Asset. This puts Lamb Weston Holdings in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.49. Lamb Weston Holdings' value of 7.37% is 111.5% above this benchmark. Historically, Lamb Weston Holdings' own Return-on-Tangible-Asset has ranged from 4.86 to 22.04 over the past decade. While the company's 10-year median is 11.53 vs. the industry median of 3.49, 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 Return-on-Tangible-Asset for a Consumer Packaged Goods company?
The median Return-on-Tangible-Asset among Consumer Packaged Goods companies is 3.49, based on 1,996 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lamb Weston Holdings's current Return-on-Tangible-Asset of 7.37% is 111.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Asset is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Return-on-Tangible-Asset is 7.37%, which is 36% below median its own 10-year median of 11.53. 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 (MEX:LW) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,025.65, compared to a current price of MXN824.00 — trading 19.7% below its estimated fair value. The current Return-on-Tangible-Asset is 7.37%, which is 36% below median its 10-year median of 11.53 and 111.5% above the Consumer Packaged Goods industry median of 3.49. Lamb Weston Holdings' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Lamb Weston Holdings (MEX:LW), the current Return-on-Tangible-Asset is 7.37% 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 (MEX:LW) Overvalued in 2026?
Based on GuruFocus' analysis, Lamb Weston Holdings stock appears to be undervalued.
The current stock price of MXN824.00 is trading 19.7% below its estimated GF Value™ of MXN1,025.65.
GuruFocus considers Lamb Weston Holdings to be Significantly Undervalued.
Key valuation signals for MEX:LW:
Return-on-Tangible-Asset: 7.37% (36% below median its 10-year median of 11.53)
GF Value™: MXN1,025.65 vs. price of MXN824.00 (19.7% below fair value)
Industry Position: 111.5% above the Consumer Packaged Goods median (#847 of 1996)
No single metric tells the full story. See the MEX: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.
78GF Score
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