22 USD
-0.25 (-1.12%)
We assign a fundamental rating of 7 out of 10 to LWAY. LWAY was compared to 87 industry peers in the Food Products industry. LWAY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LWAY has a decent growth rate and is not valued too expensively. These ratings would make LWAY suitable for quality investing!
1. Profitability
1.1 Basic Checks
- LWAY had positive earnings in the past year.
- LWAY had a positive operating cash flow in the past year.
- Each year in the past 5 years LWAY has been profitable.
- In the past 5 years LWAY always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.19%, LWAY belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
- LWAY's Return On Equity of 13.48% is amongst the best of the industry. LWAY outperforms 81.61% of its industry peers.
- LWAY has a Return On Invested Capital of 10.12%. This is amongst the best in the industry. LWAY outperforms 88.51% of its industry peers.
- LWAY had an Average Return On Invested Capital over the past 3 years of 10.79%. This is significantly below the industry average of 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 13.48% | ||
| ROIC | 10.12% |
ROA(3y)8.4%
ROA(5y)7.01%
ROE(3y)11.08%
ROE(5y)9.36%
ROIC(3y)10.79%
ROIC(5y)9.06%
1.3 Margins
- LWAY has a Profit Margin of 5.47%. This is in the better half of the industry: LWAY outperforms 72.41% of its industry peers.
- In the last couple of years the Profit Margin of LWAY has grown nicely.
- With a decent Operating Margin value of 6.43%, LWAY is doing good in the industry, outperforming 67.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of LWAY has grown nicely.
- The Gross Margin of LWAY (26.82%) is better than 63.22% of its industry peers.
- In the last couple of years the Gross Margin of LWAY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.82% |
OM growth 3Y13.75%
OM growth 5YN/A
PM growth 3Y20.36%
PM growth 5Y55.37%
GM growth 3Y2.57%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LWAY is creating some value.
- The number of shares outstanding for LWAY has been increased compared to 1 year ago.
- LWAY has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for LWAY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 11.29 indicates that LWAY is not in any danger for bankruptcy at the moment.
- LWAY has a better Altman-Z score (11.29) than 93.10% of its industry peers.
- LWAY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.29 |
ROIC/WACC1.14
WACC8.88%
2.3 Liquidity
- A Current Ratio of 2.30 indicates that LWAY has no problem at all paying its short term obligations.
- The Current ratio of LWAY (2.30) is better than 67.82% of its industry peers.
- A Quick Ratio of 1.83 indicates that LWAY should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.83, LWAY belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.70%.
- LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.84% yearly.
- LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.14%.
- Measured over the past years, LWAY shows a quite strong growth in Revenue. The Revenue has been growing by 14.80% on average per year.
EPS 1Y (TTM)-40.7%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%21.05%
Revenue 1Y (TTM)12.14%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%23.97%
3.2 Future
- The Earnings Per Share is expected to grow by 48.76% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 13.02% on average over the next years. This is quite good.
EPS Next Y82.39%
EPS Next 2Y48.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.86%
Revenue Next 2Y13.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- LWAY is valuated quite expensively with a Price/Earnings ratio of 43.14.
- LWAY's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LWAY is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 16.85, LWAY is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LWAY indicates a somewhat cheap valuation: LWAY is cheaper than 64.37% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.14 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
- LWAY's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.61 |
4.3 Compensation for Growth
- LWAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LWAY has an outstanding profitability rating, which may justify a higher PE ratio.
- LWAY's earnings are expected to grow with 48.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)0.53
EPS Next 2Y48.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LWAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LIFEWAY FOODS INC / LWAY FAQ
What is the ChartMill fundamental rating of LIFEWAY FOODS INC (LWAY) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LWAY.
What is the valuation status for LWAY stock?
ChartMill assigns a valuation rating of 5 / 10 to LIFEWAY FOODS INC (LWAY). This can be considered as Fairly Valued.
How profitable is LIFEWAY FOODS INC (LWAY) stock?
LIFEWAY FOODS INC (LWAY) has a profitability rating of 8 / 10.
What is the valuation of LIFEWAY FOODS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 43.14 and the Price/Book (PB) ratio is 4.05.
Can you provide the dividend sustainability for LWAY stock?
The dividend rating of LIFEWAY FOODS INC (LWAY) is 0 / 10 and the dividend payout ratio is 0%.