Is Lamb Weston Holdings, Inc. (LW) Halal?

NYSE Consumer Defensive United States $5.8B
✗ NOT HALAL
Confidence: 90/100
Lamb Weston Holdings, Inc. (LW) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 64.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Lamb Weston Holdings, Inc. operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from May 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 64.8%
/ 30%
1.1%
/ 30%
12.2%
/ 30%
1.55%
/ 5%
✗ NOT HALAL
DJIM 64.8%
/ 33%
1.1%
/ 33%
12.2%
/ 33%
1.55%
/ 5%
✗ NOT HALAL
MSCI 56.2%
/ 33%
1.0%
/ 33%
10.6%
/ 33%
1.55%
/ 5%
✗ NOT HALAL
S&P 64.8%
/ 33%
1.1%
/ 33%
12.2%
/ 33%
1.55%
/ 5%
✗ NOT HALAL
FTSE 56.2%
/ 33%
1.0%
/ 33%
10.6%
/ 50%
1.55%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
15.1
Forward: 13.6
EPS
$2.76
Dividend Yield
365.0%
Payout: 53.6%
P/B Ratio
3.3
EV/EBITDA
7.8
EV: $9.6B
Revenue
$6.5B
Growth: 1.1%
Beta
0.4
Low volatility
Current Ratio
1.4

Profitability

Gross Margin 22.1%
Operating Margin 9.5%
Net Margin 6.1%
Return on Equity (ROE) 23.2%
Return on Assets (ROA) 6.9%

Cash Flow & Balance Sheet

Operating Cash Flow$868M
Free Cash Flow$230M
Total Debt$4.2B
Debt-to-Equity224.8
Current Ratio1.4
Total Assets$7.4B

Price & Trading

Last Close$40.83
50-Day MA$45.29
200-Day MA$53.03
Avg Volume3.2M
Beta0.4
52-Week Range
$39.60
$67.07

About Lamb Weston Holdings, Inc. (LW)

CEO
Mr. Michael Jared Smith
Employees
10,100
Sector
Consumer Defensive
Industry
Packaged Foods
Country
United States
Exchange
NYSE
Market Cap
$5.8B
Currency
USD

Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. It sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to quick service and full-service restaurants and chains, wholesale, grocery, mass merchants, club retailers, and specialty retailers, as well as foodservice distributors and institutions, including businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.

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Frequently Asked Questions

Is Lamb Weston Holdings, Inc. (LW) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lamb Weston Holdings, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Lamb Weston Holdings, Inc.'s debt ratio?

Lamb Weston Holdings, Inc.'s debt ratio is 64.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 56.2%.

What are Lamb Weston Holdings, Inc.'s key financial metrics?

Lamb Weston Holdings, Inc. has a market capitalization of $5.8B, trailing P/E ratio of 15.1, and revenue of $6.5B. The company maintains a gross margin of 22.1% and a net margin of 6.1%. Return on equity stands at 23.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.