LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
23.64 USD
-0.05 (-0.21%)
We assign a fundamental rating of 7 out of 10 to LWAY. LWAY was compared to 86 industry peers in the Food Products industry. LWAY gets an excellent profitability rating and is at the same time showing great financial health properties. LWAY has a correct valuation and a medium 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.
LWAY had positive earnings in each of the past 5 years.
Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.79%, LWAY belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.48%, LWAY is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.95%, LWAY belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LWAY is significantly below the industry average of 28.65%.
| 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
LWAY has a Profit Margin of 5.49%. This is in the better half of the industry: LWAY outperforms 70.93% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
LWAY has a better Operating Margin (6.36%) than 63.95% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.01%, LWAY is in the better half of 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.
Compared to 1 year ago, LWAY has more shares outstanding
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
An Altman-Z score of 15.02 indicates that LWAY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.02, LWAY belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
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 | 0 | ||
| Altman-Z | 15.02 |
ROIC/WACC1.14
WACC8.73%
2.3 Liquidity
A Current Ratio of 3.03 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Current ratio of 3.03 is amongst the best of the industry. LWAY outperforms 84.88% of its industry peers.
A Quick Ratio of 2.40 indicates that LWAY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.40, LWAY belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
The earnings per share for LWAY have decreased strongly by -47.78% in the last year.
The Earnings Per Share has been growing by 81.84% on average over the past years. This is a very strong growth
The Revenue has grown by 9.18% in the past year. This is quite good.
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)-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
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 12.78% on average per year.
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.
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
A Price/Earnings ratio of 50.30 indicates a quite expensive valuation of LWAY.
Compared to the rest of the industry, the Price/Earnings ratio of LWAY is on the same level as its industry peers.
LWAY is valuated expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
LWAY is valuated rather expensively with a Price/Forward Earnings ratio of 18.84.
62.79% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
LWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.3 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LWAY.
LWAY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 273.58 | ||
| EV/EBITDA | 21.32 |
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.
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 45.82% in the coming years.
PEG (NY)0.6
PEG (5Y)0.61
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 (11/11/2025, 2:13:58 PM)
23.64
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change-1.98%
Ins Owners15.59%
Ins Owner Change-3.38%
Market Cap360.04M
Revenue(TTM)193.02M
Net Income(TTM)10.61M
Analysts82.86
Price Target33.66 (42.39%)
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 | 50.3 | ||
| Fwd PE | 18.84 | ||
| P/S | 1.87 | ||
| P/FCF | 273.58 | ||
| P/OCF | 41.7 | ||
| P/B | 4.58 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 21.32 |
EPS(TTM)0.47
EY1.99%
EPS(NY)1.25
Fwd EY5.31%
FCF(TTM)0.09
FCFY0.37%
OCF(TTM)0.57
OCFY2.4%
SpS12.67
BVpS5.17
TBVpS4
PEG (NY)0.6
PEG (5Y)0.61
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 | 15.02 |
F-Score4
WACC8.73%
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)-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 50.3 and the Price/Book (PB) ratio is 4.58.
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.