Lamb Weston HoldingsBSP:L1WH34 77 ROA % is 2.89% as of Feb. 2026, which is 76% below its 10-year median of 12.00. GuruFocus rates BSP:L1WH34 with a GF Score™ of 77/100 and a GF Value™ of R$180.59. The stock has 4 warning signs investors should review. Among 1,988 Consumer Packaged Goods companies, Lamb Weston Holdings ranks better than 55.53% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lamb Weston Holdings's annualizedNet Income for the quarter that ended in Feb. 2026 was R$1,123 Mil.
Lamb Weston Holdings's average Total Assets over the quarter that ended in Feb. 2026 was R$38,798 Mil. Therefore, Lamb Weston Holdings's annualized ROA % for the quarter that ended in Feb. 2026 was 2.89%.
The historical rank and industry rank for Lamb Weston Holdings's ROA % or its related term are showing as below:
BSP:L1WH34'
s ROA % Range Over the Past 10 Years
Min: 4.08 Med: 12 Max: 18.93
Current: 4.08
During the past 12 years, Lamb Weston Holdings's highest ROA % was 18.93%. The lowest was 4.08%. And the median was 12.00%.
BSP:L1WH34's ROA % is ranked better than 55.53% of 1988
companies
in the Consumer Packaged Goods industry
Industry Median: 3.24
vs BSP:L1WH34: 4.08
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Packaged Foods subindustry, Lamb Weston Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Lamb Weston Holdings (BSP:L1WH34) has a ROA % of 2.89% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lamb Weston Holdings and its competitors. This is 76% below median its historical median of 12.00. Over the past decade, Lamb Weston Holdings' ROA % has ranged from 4.08 to 18.93. According to the industry distribution chart, Lamb Weston Holdings ranks #884 out of 1988 companies in the Consumer Packaged Goods industry, placing it in the top 44.5%.
Is Lamb Weston Holdings' ROA % too high?
Lamb Weston Holdings' current ROA % of 2.89% is 76% below median its 10-year median of 12.00. Over the past 10 years, this metric has ranged from a low of 4.08 to a high of 18.93. The Consumer Packaged Goods industry median ROA % is 3.24. Lamb Weston Holdings' value of 2.89% is 10.8% below this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #884 out of 1988 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. 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' ROA % compare to INGR and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #884 out of 1988 companies for ROA %. This puts Lamb Weston Holdings in the upper half of its industry. The industry median ROA % is 3.24. Lamb Weston Holdings' value of 2.89% is 10.8% below this benchmark. Historically, Lamb Weston Holdings' own ROA % has ranged from 4.08 to 18.93 over the past decade. While the company's 10-year median is 12.00 vs. the industry median of 3.24, Lamb Weston Holdings has consistently been below 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 ROA % for a Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.24, based on 1,988 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lamb Weston Holdings's current ROA % of 2.89% is 10.8% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current ROA % is 2.89%, which is 76% below median its own 10-year median of 12.00. 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?
Lamb Weston Holdings (BSP:L1WH34) has a current ROA % of 2.89%. The stock's GF Value™ is R$180.59, compared to a current price of R$115.81 — trading 35.9% below its estimated fair value. The current ROA % is 2.89%, which is 76% below median its 10-year median of 12.00 and 10.8% below the Consumer Packaged Goods industry median of 3.24. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Lamb Weston Holdings (BSP:L1WH34), the current ROA % is 2.89% 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 35.9% below its estimated GF Value™ of R$180.59.
Key valuation signals for BSP:L1WH34:
ROA %: 2.89% (76% below median its 10-year median of 12.00)
GF Value™: R$180.59 vs. price of R$115.81 (35.9% below fair value)
Industry Position: 10.8% below the Consumer Packaged Goods median (#884 of 1988)
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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