LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
25.01 USD
-0.32 (-1.26%)
We assign a fundamental rating of 6 out of 10 to LWAY. LWAY was compared to 86 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
In the past year LWAY was profitable.
In the past year LWAY had a positive cash flow from operations.
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
LWAY has a Return On Assets of 10.79%. This is amongst the best in the industry. LWAY outperforms 91.86% of its industry peers.
With a decent Return On Equity value of 13.48%, LWAY is doing good in the industry, outperforming 77.91% of the companies in the same industry.
The Return On Invested Capital of LWAY (9.95%) is better than 83.72% 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 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROIC | 9.95% |
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
Looking at the Profit Margin, with a value of 5.49%, LWAY is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
In the last couple of years the Profit Margin of LWAY has grown nicely.
With a decent Operating Margin value of 6.36%, LWAY is doing good in the industry, outperforming 65.12% of the companies in the same industry.
In the last couple of years the Operating Margin of LWAY has grown nicely.
With a decent Gross Margin value of 26.01%, LWAY is doing good in the industry, outperforming 62.79% of the companies in the same industry.
LWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% |
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.
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.
2.2 Solvency
LWAY has an Altman-Z score of 15.78. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.78, LWAY belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
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 | 0 | ||
| Altman-Z | 15.78 |
ROIC/WACC1.15
WACC8.64%
2.3 Liquidity
LWAY has a Current Ratio of 3.03. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LWAY (3.03) is better than 83.72% of its industry peers.
LWAY has a Quick Ratio of 2.40. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.40, LWAY belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.78%.
Measured over the past years, LWAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.84% on average per year.
The Revenue has grown by 9.18% in the past year. This is quite good.
The Revenue has been growing by 14.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%9.65%
3.2 Future
The Earnings Per Share is expected to grow by 45.82% on average over the next years. This is a very strong growth
LWAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.78% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 53.21 indicates a quite expensive valuation of LWAY.
The rest of the industry has a similar Price/Earnings ratio as LWAY.
LWAY is valuated expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.93, the valuation of LWAY can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LWAY indicates a somewhat cheap valuation: LWAY is cheaper than 62.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. LWAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.21 | ||
| Fwd PE | 19.93 |
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 60.47% of the companies listed in the same industry.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 289.44 | ||
| EV/EBITDA | 22.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent 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)0.64
PEG (5Y)0.65
EPS Next 2Y45.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LWAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LWAY (10/29/2025, 11:30:26 AM)
25.01
-0.32 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change0.35%
Ins Owners15.59%
Ins Owner Change-3.38%
Market Cap380.90M
Revenue(TTM)193.02M
Net Income(TTM)10.61M
Analysts82.86
Price Target33.66 (34.59%)
Short Float %3.9%
Short Ratio1.58
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)-21.17%
Min EPS beat(2)-94.84%
Max EPS beat(2)52.51%
EPS beat(4)1
Avg EPS beat(4)-44.5%
Min EPS beat(4)-104.67%
Max EPS beat(4)52.51%
EPS beat(8)4
Avg EPS beat(8)-15.97%
EPS beat(12)6
Avg EPS beat(12)45.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-6.83%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)-0.29%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
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)16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)20.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.21 | ||
| Fwd PE | 19.93 | ||
| P/S | 1.97 | ||
| P/FCF | 289.44 | ||
| P/OCF | 44.12 | ||
| P/B | 4.84 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 22.88 |
EPS(TTM)0.47
EY1.88%
EPS(NY)1.25
Fwd EY5.02%
FCF(TTM)0.09
FCFY0.35%
OCF(TTM)0.57
OCFY2.27%
SpS12.67
BVpS5.17
TBVpS4
PEG (NY)0.64
PEG (5Y)0.65
Graham Number7.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROCE | 14.97% | ||
| ROIC | 9.95% | ||
| ROICexc | 13.42% | ||
| ROICexgc | 18.98% | ||
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% | ||
| FCFM | 0.68% |
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 Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 200.06% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 350.6 | ||
| Cash Conversion | 54.2% | ||
| Profit Quality | 12.41% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z | 15.78 |
F-Score4
WACC8.64%
ROIC/WACC1.15
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)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.18%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%9.65%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.85%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year49.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.94%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-13.49%
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 6 / 10 to LWAY.
What is the valuation status of LIFEWAY FOODS INC (LWAY) stock?
ChartMill assigns a valuation rating of 4 / 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 7 / 10.
Can you provide the PE and PB ratios for LWAY stock?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 53.21 and the Price/Book (PB) ratio is 4.84.
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.