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LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis

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

23.4  -0.1 (-0.43%)

Fundamental Rating

7

Taking everything into account, LWAY scores 7 out of 10 in our fundamental rating. LWAY was compared to 89 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 has a decent growth rate and is not valued too expensively. With these ratings, LWAY could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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8

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.
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

With an excellent Return On Assets value of 9.97%, LWAY belongs to the best of the industry, outperforming 91.01% of the companies in the same industry.
LWAY has a better Return On Equity (12.55%) than 69.66% of its industry peers.
The Return On Invested Capital of LWAY (12.26%) is better than 89.89% of its industry peers.
LWAY had an Average Return On Invested Capital over the past 3 years of 10.79%. This is in line with the industry average of 8.94%.
The last Return On Invested Capital (12.26%) for LWAY is above the 3 year average (10.79%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.97%
ROE 12.55%
ROIC 12.26%
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 has a Profit Margin of 4.83%. This is in the better half of the industry: LWAY outperforms 68.54% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
LWAY's Operating Margin of 7.41% is fine compared to the rest of the industry. LWAY outperforms 69.66% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
LWAY's Gross Margin of 26.00% is fine compared to the rest of the industry. LWAY outperforms 64.04% of its industry peers.
LWAY's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.41%
PM (TTM) 4.83%
GM 26%
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

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.
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

LWAY has an Altman-Z score of 15.60. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.60, LWAY belongs to the best of the industry, outperforming 98.88% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.6
ROIC/WACC1.36
WACC9.03%
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 2.81. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
LWAY has a Current ratio of 2.81. This is in the better half of the industry: LWAY outperforms 79.78% of its industry peers.
LWAY has a Quick Ratio of 2.25. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
LWAY has a Quick ratio of 2.25. This is amongst the best in the industry. LWAY outperforms 85.39% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.25
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

The earnings per share for LWAY have decreased strongly by -22.37% in the last year.
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.
LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
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)-22.37%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-103.85%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%11.5%

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 50.49% on average per year.
LWAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.12% yearly.
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.03%
Revenue Next 2Y11.12%
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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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 39.66, LWAY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LWAY.
The average S&P500 Price/Earnings ratio is at 28.33. LWAY is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 22.27, LWAY is valued on the expensive side.
65.17% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
LWAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.37.
Industry RankSector Rank
PE 39.66
Fwd PE 22.27
LWAY Price Earnings VS Forward Price EarningsLWAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 56.77
EV/EBITDA 19.75
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 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 50.49% in the coming years.
PEG (NY)0.51
PEG (5Y)0.48
EPS Next 2Y50.49%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for LWAY!.
Industry RankSector Rank
Dividend Yield N/A

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LIFEWAY FOODS INC

NASDAQ:LWAY (4/23/2025, 4:00:00 PM)

23.4

-0.1 (-0.43%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)03-14 2025-03-14/bmo
Earnings (Next)05-12 2025-05-12
Inst Owners23.38%
Inst Owner Change-0.13%
Ins Owners15.97%
Ins Owner Change1.32%
Market Cap355.68M
Analysts82.86
Price Target28.56 (22.05%)
Short Float %5.34%
Short Ratio5.47
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)-67.84%
Min EPS beat(2)-104.67%
Max EPS beat(2)-31.01%
EPS beat(4)1
Avg EPS beat(4)-36.94%
Min EPS beat(4)-104.67%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)16.4%
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)-6.65%
Min Revenue beat(2)-9.16%
Max Revenue beat(2)-4.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
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)0%
PT rev (3m)5.66%
EPS NQ rev (1m)-17.39%
EPS NQ rev (3m)-17.39%
EPS NY rev (1m)-9.65%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)3.19%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 39.66
Fwd PE 22.27
P/S 1.9
P/FCF 56.77
P/OCF 27.44
P/B 4.95
P/tB 6.61
EV/EBITDA 19.75
EPS(TTM)0.59
EY2.52%
EPS(NY)1.05
Fwd EY4.49%
FCF(TTM)0.41
FCFY1.76%
OCF(TTM)0.85
OCFY3.64%
SpS12.29
BVpS4.73
TBVpS3.54
PEG (NY)0.51
PEG (5Y)0.48
Profitability
Industry RankSector Rank
ROA 9.97%
ROE 12.55%
ROCE 18.46%
ROIC 12.26%
ROICexc 15.78%
ROICexgc 22.86%
OM 7.41%
PM (TTM) 4.83%
GM 26%
FCFM 3.35%
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-Score6
Asset Turnover2.06
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 197.79%
Cap/Sales 3.58%
Interest Coverage 141.35
Cash Conversion 75.19%
Profit Quality 69.42%
Current Ratio 2.81
Quick Ratio 2.25
Altman-Z 15.6
F-Score6
WACC9.03%
ROIC/WACC1.36
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)-22.37%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-103.85%
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%11.5%
Revenue Next Year12.03%
Revenue Next 2Y11.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.53%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year60.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50.24%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-23.49%
OCF growth 3Y32.6%
OCF growth 5Y27.75%