LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
21.75 USD
+0.05 (+0.23%)
22.04 USD
+0.29 (+1.33%)
Overall LWAY gets a fundamental rating of 7 out of 10. We evaluated LWAY against 87 industry peers in the Food Products industry. LWAY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LWAY is not valued too expensively and it also shows a decent growth rate. With these ratings, LWAY could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
LWAY had positive earnings in the past year.
In the past year LWAY had a positive cash flow from operations.
In the past 5 years LWAY has always been profitable.
LWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LWAY (10.19%) is better than 94.25% of its industry peers.
With an excellent Return On Equity value of 13.48%, LWAY belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
LWAY has a better Return On Invested Capital (10.12%) than 86.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LWAY is significantly below the industry average of 28.37%.
| 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 71.26% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
The Operating Margin of LWAY (6.43%) is better than 66.67% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
The Gross Margin of LWAY (26.82%) is better than 64.37% of its industry peers.
LWAY's Gross Margin has improved in the last couple of years.
| 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.
LWAY has more shares outstanding than it did 1 year ago.
LWAY has less shares outstanding than it did 5 years ago.
LWAY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 11.12 indicates that LWAY is not in any danger for bankruptcy at the moment.
LWAY has a Altman-Z score of 11.12. This is amongst the best in the industry. LWAY outperforms 96.55% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.12 |
ROIC/WACC1.16
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.30 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Current ratio of 2.30 is fine compared to the rest of the industry. LWAY outperforms 67.82% of its industry peers.
LWAY has a Quick Ratio of 1.83. This is a normal value and indicates that LWAY is financially healthy and should not expect problems in meeting its short term obligations.
LWAY has a Quick ratio of 1.83. This is amongst the best in the industry. LWAY outperforms 82.76% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 81.84% on average over the past years. This is a very strong growth
LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.14%.
LWAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.80% yearly.
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
Based on estimates for the next years, LWAY will show a very strong growth in Earnings Per Share. The EPS will grow by 45.82% on average per year.
The Revenue is expected to grow by 12.78% on average over the next years. This is quite good.
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.76%
Revenue Next 2Y12.78%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LWAY is valuated quite expensively with a Price/Earnings ratio of 42.65.
LWAY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.51. LWAY is valued rather expensively when compared to this.
LWAY is valuated rather expensively with a Price/Forward Earnings ratio of 17.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LWAY indicates a somewhat cheap valuation: LWAY is cheaper than 65.52% of the companies listed in the same industry.
LWAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.65 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LWAY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.16 |
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.
The excellent profitability rating of LWAY may justify a higher PE ratio.
A more expensive valuation may be justified as LWAY's earnings are expected to grow with 45.82% in the coming years.
PEG (NY)0.51
PEG (5Y)0.52
EPS Next 2Y45.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.75
+0.05 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change35.09%
Ins Owners15.59%
Ins Owner Change-3.48%
Market Cap331.25M
Revenue(TTM)204.07M
Net Income(TTM)11.16M
Analysts82.86
Price Target33.66 (54.76%)
Short Float %3.86%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.52%
Min EPS beat(2)-19.47%
Max EPS beat(2)52.51%
EPS beat(4)1
Avg EPS beat(4)-41.62%
Min EPS beat(4)-104.67%
Max EPS beat(4)52.51%
EPS beat(8)3
Avg EPS beat(8)-23.52%
EPS beat(12)5
Avg EPS beat(12)3.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)1.86%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-6.83%
Max Revenue beat(4)1.86%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)7
Avg Revenue beat(12)-0.71%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)20.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.65 | ||
| Fwd PE | 17.34 | ||
| P/S | 1.62 | ||
| P/FCF | N/A | ||
| P/OCF | 40.89 | ||
| P/B | 4 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)0.51
EY2.34%
EPS(NY)1.25
Fwd EY5.77%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)0.53
OCFY2.45%
SpS13.4
BVpS5.43
TBVpS4.27
PEG (NY)0.51
PEG (5Y)0.52
Graham Number7.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 13.48% | ||
| ROCE | 15.24% | ||
| ROIC | 10.12% | ||
| ROICexc | 13.81% | ||
| ROICexgc | 19.17% | ||
| OM | 6.43% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.82% | ||
| FCFM | N/A |
ROA(3y)8.4%
ROA(5y)7.01%
ROE(3y)11.08%
ROE(5y)9.36%
ROIC(3y)10.79%
ROIC(5y)9.06%
ROICexc(3y)13.51%
ROICexc(5y)11.16%
ROICexgc(3y)20.52%
ROICexgc(5y)17.09%
ROCE(3y)16.23%
ROCE(5y)13.64%
ROICexgc growth 3Y19.7%
ROICexgc growth 5YN/A
ROICexc growth 3Y25.21%
ROICexc growth 5YN/A
OM growth 3Y13.75%
OM growth 5YN/A
PM growth 3Y20.36%
PM growth 5Y55.37%
GM growth 3Y2.57%
GM growth 5Y1.97%
F-Score4
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 283.67% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 291.6 | ||
| Cash Conversion | 47.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 11.12 |
F-Score4
WACC8.75%
ROIC/WACC1.16
Cap/Depr(3y)150.52%
Cap/Depr(5y)115.42%
Cap/Sales(3y)2.91%
Cap/Sales(5y)2.44%
Profit Quality(3y)80.06%
Profit Quality(5y)98.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.7%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%21.05%
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.14%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%23.97%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.54%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year49.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-133.24%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-35.13%
OCF growth 3Y32.6%
OCF growth 5Y27.75%
LIFEWAY FOODS INC / LWAY FAQ
Can you provide the ChartMill fundamental rating for LIFEWAY FOODS INC?
ChartMill assigns a fundamental rating of 7 / 10 to LWAY.
What is the valuation status of LIFEWAY FOODS INC (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.
Can you provide the PE and PB ratios for LWAY stock?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 42.65 and the Price/Book (PB) ratio is 4.
Can you provide the expected EPS growth for LWAY stock?
The Earnings per Share (EPS) of LIFEWAY FOODS INC (LWAY) is expected to grow by 83.25% in the next year.