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Lamb Weston HoldingsBSP:L1WH34 21 Return-on-Tangible-Equity is 56.42% as of Feb. 2026, which is 75% below its 10-year median of 221.36. GuruFocus rates BSP:L1WH34 with a GF Score™ of 21/100 and a GF Value™ of R$166.13 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,881 Consumer Packaged Goods companies, Lamb Weston Holdings ranks better than 94.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lamb Weston Holdings's annualized net income for the quarter that ended in Feb. 2026 was R$1,123 Mil. Lamb Weston Holdings's average shareholder tangible equity for the quarter that ended in Feb. 2026 was R$1,990 Mil. Therefore, Lamb Weston Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 56.42%.
The historical rank and industry rank for Lamb Weston Holdings's Return-on-Tangible-Equity or its related term are showing as below:
BSP:L1WH34'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 23.7 Med: 221.36 Max: 8952.11
Current: 86.41
During the past 12 years, Lamb Weston Holdings's highest Return-on-Tangible-Equity was 8,952.11%. The lowest was 23.70%. And the median was 221.36%.
BSP:L1WH34's Return-on-Tangible-Equity is ranked better than 94.9% of 1881
companies
in the Consumer Packaged Goods industry
Industry Median: 7.78
vs BSP:L1WH34: 86.41
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lamb Weston Holdings Return-on-Tangible-Equity Related Terms
Lamb Weston Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lamb Weston Holdings's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 56.42% mean?
Lamb Weston Holdings (BSP:L1WH34) has a Return-on-Tangible-Equity of 56.42% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lamb Weston Holdings and its competitors. This is 75% below median its historical median of 221.36. Over the past decade, Lamb Weston Holdings' Return-on-Tangible-Equity has ranged from 23.70 to 8,952.11. According to the industry distribution chart, Lamb Weston Holdings ranks #96 out of 1881 companies in the Consumer Packaged Goods industry, placing it in the top 5.1%.
Is Lamb Weston Holdings' Return-on-Tangible-Equity too high?
Lamb Weston Holdings' current Return-on-Tangible-Equity of 56.42% is 75% below median its 10-year median of 221.36. Over the past 10 years, this metric has ranged from a low of 23.70 to a high of 8,952.11. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.78. Lamb Weston Holdings' value of 56.42% is 625.2% above this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #96 out of 1881 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 21/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Return-on-Tangible-Equity compare to INGR and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #96 out of 1881 companies for Return-on-Tangible-Equity. This places Lamb Weston Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.78. Lamb Weston Holdings' value of 56.42% is 625.2% above this benchmark. Historically, Lamb Weston Holdings' own Return-on-Tangible-Equity has ranged from 23.70 to 8,952.11 over the past decade. While the company's 10-year median is 221.36 vs. the industry median of 7.78, 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-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.78, based on 1,881 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 56.42% is 625.2% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.78 — 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-Equity is 56.42%, which is 75% below median its own 10-year median of 221.36. 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 (BSP:L1WH34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$166.13, compared to a current price of R$120.55 — trading 27.4% below its estimated fair value. The current Return-on-Tangible-Equity is 56.42%, which is 75% below median its 10-year median of 221.36 and 625.2% above the Consumer Packaged Goods industry median of 7.78. Lamb Weston Holdings' overall GF Score™ is 21/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lamb Weston Holdings (BSP:L1WH34), the current Return-on-Tangible-Equity is 56.42% 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$120.55 is trading 27.4% below its estimated GF Value™ of R$166.13.
GuruFocus considers Lamb Weston Holdings to be Modestly Undervalued.
Key valuation signals for BSP:L1WH34:
Return-on-Tangible-Equity: 56.42% (75% below median its 10-year median of 221.36)
GF Value™: R$166.13 vs. price of R$120.55 (27.4% below fair value)
Industry Position: 625.2% above the Consumer Packaged Goods median (#96 of 1881)
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.
21GF Score
Get the complete analysis for BSP:L1WH34
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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