Lamb Weston Story

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LW -- USA Stock  

USD 71.89  0.23  0.32%

It looks like Kellogg will continue to recover much faster as its share price surged up 1.47% today to Lamb Weston's 3.5518%. As many rational traders are trying to avoid consumer defensive space, it makes sense to focus on Lamb Weston Holdings a little further and understand how it stands against Kellogg and other similar entities. We are going to recap some of the competitive aspects of both Lamb Weston and Kellogg.
Published over a week ago
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Will Kellogg (NYSE:K) and Lamb Weston (NYSE:LW) deliver in November?
By analyzing existing basic indicators between Lamb Weston and Kellogg, 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 Kellogg 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

Now, let's check 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 Kellogg we see revenue of 13.47 B, which is 61.95% higher than that of the Packaged Foods

Sector
8.3 B
K
13.5 B
LW3.79 Billion14.82
Sector8.32 Billion32.52
K13.47 Billion52.66

Lamb Weston implied volatility may change after the climb

Latest jensen alpha is at 0.11. Lamb Weston Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect Lamb Weston Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Lamb Weston future alpha.

The Current Takeaway on Lamb Weston Investment

While some firms under the packaged foods industry are still a bit expensive, Lamb Weston may offer a potential longer-term growth to sophisticated investors. The bottom line, as of the 7th of October 2020, we believe that Lamb Weston is currently overvalued with below average odds of distress in the next two years. Our overall 30 days advice on the venture is Cautious Hold.

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 Raphi 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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