22 USD
-0.25 (-1.12%)
LWAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 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 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.
- LWAY had a positive operating cash flow in the past year.
- In the past 5 years LWAY has always 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 10.19%. This is amongst the best in the industry. LWAY outperforms 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 81.61% of the companies in the same industry.
- LWAY has a better Return On Invested Capital (10.12%) than 88.51% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LWAY is significantly below the industry average of 27.79%.
| 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 better Profit Margin (5.47%) than 72.41% of its industry peers.
- In the last couple of years the Profit Margin of LWAY has grown nicely.
- LWAY's Operating Margin of 6.43% is fine compared to the rest of the industry. LWAY outperforms 67.82% of its industry peers.
- In the last couple of years the Operating Margin of LWAY has grown nicely.
- Looking at the Gross Margin, with a value of 26.82%, LWAY is in the better half of the industry, outperforming 63.22% of the companies in the same industry.
- In the last couple of years the Gross Margin of LWAY has grown nicely.
| 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.
- 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
- LWAY has an Altman-Z score of 11.20. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LWAY (11.20) is better than 93.10% of its industry peers.
- 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 | N/A | ||
| Altman-Z | 11.2 |
ROIC/WACC1.14
WACC8.86%
2.3 Liquidity
- A Current Ratio of 2.30 indicates that LWAY has no problem at all paying its short term obligations.
- LWAY has a better Current ratio (2.30) than 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.
- Looking at the Quick ratio, with a value of 1.83, LWAY belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
| 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%.
- LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.84% yearly.
- LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.14%.
- The Revenue has been growing by 14.80% on average over the past years. This is quite good.
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
- LWAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.79% yearly.
- Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 13.67% on average per year.
EPS Next Y80.66%
EPS Next 2Y45.82%
EPS Next 3Y39.79%
EPS Next 5YN/A
Revenue Next Year12.32%
Revenue Next 2Y13.02%
Revenue Next 3Y13.67%
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
- With a Price/Earnings ratio of 43.14, LWAY can be considered very expensive at the moment.
- LWAY's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LWAY is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 17.54, the valuation of LWAY can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than 66.67% of the companies in the same industry.
- LWAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.14 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as LWAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.39 |
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 39.79% in the coming years.
PEG (NY)0.53
PEG (5Y)0.53
EPS Next 2Y45.82%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LIFEWAY FOODS INC / LWAY FAQ
What is the ChartMill fundamental rating of LIFEWAY FOODS INC (LWAY) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LWAY.
What is the valuation status for 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.
What is the valuation of LIFEWAY FOODS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 43.14 and the Price/Book (PB) ratio is 4.05.
Can you provide the dividend sustainability for LWAY stock?
The dividend rating of LIFEWAY FOODS INC (LWAY) is 0 / 10 and the dividend payout ratio is 0%.