Lamb Weston Story

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LW -- USA Stock  

USD 71.89  0.23  0.32%

It looks like BG Foods will continue to recover much faster as its share price surged up 0.50% today to Lamb Weston's 1.2365%. As many investors are getting excited about consumer defensive space, Lamb Weston and BG Foods may be going in opposite directions. We are going to recap some of the competitive aspects of both Lamb Weston and BG Foods.
Published over a week ago
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Will Lamb Weston (NYSE:LW) sophisticated investors shift to BG Foods (NYSE:BGS)?
By analyzing existing basic indicators between Lamb Weston and BG Foods, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in BG Foods with a short position in Lamb Weston. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lamb Weston has an asset utilization ratio of 175.6 percent. This indicates that the company is making $1.76 for each dollar of assets. An increasing asset utilization means that Lamb Weston Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Lamb Weston or Kellogg is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Lamb Weston dividends

A dividend is the distribution of a portion of Lamb Weston earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Lamb Weston dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Lamb Weston one year expected dividend income is about $0.56 per share.
Dividend Yield is likely to climb to 0.0142 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (130.9 M) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-121.3 M-130.9 M
Dividend Yield 0.014  0.0142 
Dividends per Basic Common Share 0.86  0.85 
Investing in dividend-paying stocks, such as Lamb Weston Holdings is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Lamb Weston must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Lamb Weston. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Lamb Weston's Liquidity

Lamb Weston financial leverage refers to using borrowed capital as a funding source to finance Lamb Weston Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lamb Weston financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lamb Weston's total debt and its cash.

Correlation Between Lamb Weston and Kellogg Company

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Lamb Weston together with similar or unrelated positions with a negative correlation. For example, you can also add Kellogg to your portfolio. If Kellogg is not perfectly correlated to Lamb Weston it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Lamb Weston for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between LW and K for more information.

Breaking down Lamb Weston Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Lamb Weston revenue. Based on the latest financial disclosure, Lamb Weston Holdings reported 3.79 B of revenue. This is 74.49% lower than that of the Consumer Defensive sector and 54.43% lower than that of the Packaged Foods industry. The revenue for all United States stocks is 59.83% higher than that of Lamb Weston. As for BG Foods we see revenue of 1.84 B, which is 77.88% lower than that of the Packaged Foods

Lamb Weston3.79 Billion
Sector8.32 Billion
BG Foods1.84 Billion
3.8 B
Lamb Weston
8.3 B
Sector
1.8 B
BG Foods

Will Lamb Weston pull back in November 2020?

Potential upside is down to 3.6. It may cause a possible volatility fall. As of the 6th of October, Lamb Weston secures the Risk Adjusted Performance of 0.0584, mean deviation of 2.01, and Downside Deviation of 3.02. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lamb Weston Holdings, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Lamb Weston, which can be compared to its peers in the industry. Please verify Lamb Weston Holdings coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Lamb Weston Holdings is priced some-what accurately, providing market reflects its recent price of 70.41 per share. Given that Lamb Weston Holdings has jensen alpha of 0.1272, we recommend you to check Lamb Weston's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On Lamb Weston

While other entities within the packaged foods industry are still a little expensive, even after the recent corrections, Lamb Weston may offer a potential longer-term growth to sophisticated investors. On the whole, as of the 6th of October 2020, our primary 30 days buy-hold-sell recommendation on the venture is Strong Hold. We believe Lamb Weston is overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Lamb Weston Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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