Lamb Weston Holdings, Inc. (LW) vs Pfizer Inc. (PFE)
Rewards
- ★Lamb Weston Holdings, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★Free cash flow has grown at a 21.4% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Gross margin of 75.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Dividend yield of 6.53% with a consistent or growing payout over the past 4 years.
- ★FCF yield of 9.0% is historically attractive — the business generates significant cash relative to its price.
Risks
- ⚠Gross margin of 20.7% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠High leverage (2.20x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠ROIC has declined by 13.9 percentage points over the observed period, which may signal competitive erosion.
- ⚠PEG ratio of 13.77 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $44?
The market implies +12.3% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +5.3%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $26?
The market implies +11.4% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +4.0%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Narrow moat with roic consistency as the key competitive advantage. Improving revenue predictability would strengthen the moat.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.