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LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis

NASDAQ:LWAY - Nasdaq - US5319141090 - Common Stock - Currency: USD

25.07  -0.03 (-0.12%)

After market: 24.59 -0.48 (-1.91%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LWAY. LWAY was compared to 91 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making LWAY a very profitable company, without any liquidiy or solvency issues. LWAY is quite expensive at the moment. It does show a decent growth rate. With these ratings, LWAY could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years LWAY always reported a positive cash flow from operatings.
LWAY Yearly Net Income VS EBIT VS OCF VS FCFLWAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M 10M 15M

1.2 Ratios

LWAY has a Return On Assets of 10.82%. This is amongst the best in the industry. LWAY outperforms 91.21% of its industry peers.
LWAY's Return On Equity of 13.67% is fine compared to the rest of the industry. LWAY outperforms 75.82% of its industry peers.
The Return On Invested Capital of LWAY (10.20%) is better than 82.42% 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 28.11%.
Industry RankSector Rank
ROA 10.82%
ROE 13.67%
ROIC 10.2%
ROA(3y)8.4%
ROA(5y)7.01%
ROE(3y)11.08%
ROE(5y)9.36%
ROIC(3y)10.79%
ROIC(5y)9.06%
LWAY Yearly ROA, ROE, ROICLWAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

LWAY's Profit Margin of 5.39% is fine compared to the rest of the industry. LWAY outperforms 72.53% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
Looking at the Operating Margin, with a value of 6.30%, LWAY is in the better half of the industry, outperforming 63.74% of the companies in the same industry.
LWAY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 25.53%, LWAY is doing good in the industry, outperforming 60.44% of the companies in the same industry.
LWAY's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.3%
PM (TTM) 5.39%
GM 25.53%
OM growth 3Y13.75%
OM growth 5YN/A
PM growth 3Y20.36%
PM growth 5Y55.37%
GM growth 3Y2.57%
GM growth 5Y1.97%
LWAY Yearly Profit, Operating, Gross MarginsLWAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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9

2. Health

2.1 Basic Checks

LWAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LWAY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LWAY has less shares outstanding
LWAY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
LWAY Yearly Shares OutstandingLWAY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
LWAY Yearly Total Debt VS Total AssetsLWAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 15.74 indicates that LWAY is not in any danger for bankruptcy at the moment.
LWAY's Altman-Z score of 15.74 is amongst the best of the industry. LWAY outperforms 98.90% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.74
ROIC/WACC1.14
WACC8.97%
LWAY Yearly LT Debt VS Equity VS FCFLWAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M

2.3 Liquidity

LWAY has a Current Ratio of 2.89. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.89, LWAY is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
LWAY has a Quick Ratio of 2.33. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
LWAY's Quick ratio of 2.33 is amongst the best of the industry. LWAY outperforms 87.91% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 2.33
LWAY Yearly Current Assets VS Current LiabilitesLWAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

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6

3. Growth

3.1 Past

LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.84%.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.84% yearly.
Looking at the last year, LWAY shows a quite strong growth in Revenue. The Revenue has grown by 12.84% in the last year.
The Revenue has been growing by 14.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%

3.2 Future

The Earnings Per Share is expected to grow by 37.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 10.88% on average per year.
EPS Next Y52.14%
EPS Next 2Y37.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.68%
Revenue Next 2Y10.88%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
LWAY Yearly Revenue VS EstimatesLWAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
LWAY Yearly EPS VS EstimatesLWAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2022 2023 2024 2025 2026 0 1 2 3

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 56.98, the valuation of LWAY can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LWAY.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LWAY is valued quite expensively.
The Price/Forward Earnings ratio is 22.55, which indicates a rather expensive current valuation of LWAY.
LWAY's Price/Forward Earnings is on the same level as the industry average.
LWAY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 56.98
Fwd PE 22.55
LWAY Price Earnings VS Forward Price EarningsLWAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LWAY indicates a slightly more expensive valuation: LWAY is more expensive than 60.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LWAY is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 79.08
EV/EBITDA 23.53
LWAY Per share dataLWAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LWAY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LWAY's earnings are expected to grow with 37.27% in the coming years.
PEG (NY)1.09
PEG (5Y)0.7
EPS Next 2Y37.27%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

LWAY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LIFEWAY FOODS INC

NASDAQ:LWAY (7/11/2025, 8:00:00 PM)

After market: 24.59 -0.48 (-1.91%)

25.07

-0.03 (-0.12%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)05-13 2025-05-13/bmo
Earnings (Next)08-11 2025-08-11
Inst Owners22.84%
Inst Owner Change0.06%
Ins Owners15.68%
Ins Owner Change0.03%
Market Cap381.06M
Analysts82.86
Price Target30.6 (22.06%)
Short Float %3.16%
Short Ratio3.52
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-99.75%
Min EPS beat(2)-104.67%
Max EPS beat(2)-94.84%
EPS beat(4)1
Avg EPS beat(4)-51.99%
Min EPS beat(4)-104.67%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)7.86%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.48%
Min Revenue beat(2)-6.83%
Max Revenue beat(2)-4.14%
Revenue beat(4)1
Avg Revenue beat(4)-3.55%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)5
Avg Revenue beat(8)-0.43%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.14%
PT rev (3m)7.14%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-14.56%
EPS NY rev (3m)-14.56%
Revenue NQ rev (1m)6%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)3%
Revenue NY rev (3m)-2.09%
Valuation
Industry RankSector Rank
PE 56.98
Fwd PE 22.55
P/S 2.02
P/FCF 79.08
P/OCF 33.82
P/B 5.14
P/tB 6.78
EV/EBITDA 23.53
EPS(TTM)0.44
EY1.76%
EPS(NY)1.11
Fwd EY4.43%
FCF(TTM)0.32
FCFY1.26%
OCF(TTM)0.74
OCFY2.96%
SpS12.39
BVpS4.88
TBVpS3.7
PEG (NY)1.09
PEG (5Y)0.7
Profitability
Industry RankSector Rank
ROA 10.82%
ROE 13.67%
ROCE 15.35%
ROIC 10.2%
ROICexc 13.62%
ROICexgc 19.74%
OM 6.3%
PM (TTM) 5.39%
GM 25.53%
FCFM 2.56%
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%
ROICexcg growth 3Y19.7%
ROICexcg 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-Score5
Asset Turnover2.01
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 182.79%
Cap/Sales 3.42%
Interest Coverage 201.05
Cash Conversion 73.21%
Profit Quality 47.53%
Current Ratio 2.89
Quick Ratio 2.33
Altman-Z 15.74
F-Score5
WACC8.97%
ROIC/WACC1.14
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)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
EPS Next Y52.14%
EPS Next 2Y37.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
Revenue Next Year9.68%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.98%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year21.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.49%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y46.88%
OCF growth 3Y32.6%
OCF growth 5Y27.75%