LIFEWAY FOODS INC (LWAY)
US5319141090 - Common Stock
LWAY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 93 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 evaluated to be cheap and growing strongly. This does not happen too often! This makes LWAY very considerable for value and growth and quality investing!
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.92%, LWAY belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
The Return On Equity of LWAY (18.81%) is better than 86.96% of its industry peers.
LWAY's Return On Invested Capital of 15.46% is amongst the best of the industry. LWAY outperforms 95.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LWAY is in line with the industry average of 7.69%.
The last Return On Invested Capital (15.46%) for LWAY is above the 3 year average (7.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROIC | 15.46% |
ROA(3y)6.63%
ROA(5y)5.2%
ROE(3y)9.14%
ROE(5y)7.08%
ROIC(3y)7.97%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LWAY (7.10%) is better than 75.00% 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 10.62%, LWAY is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY has a Gross Margin of 26.51%. This is in the better half of the industry: LWAY outperforms 64.13% of its industry peers.
In the last couple of years the Gross Margin of LWAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% |
OM growth 3Y30.24%
OM growth 5YN/A
PM growth 3Y31.28%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y1.14%
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
Compared to 1 year ago, LWAY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.75 indicates that LWAY is not in any danger for bankruptcy at the moment.
LWAY has a better Altman-Z score (11.75) than 97.83% of its industry peers.
LWAY has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
LWAY has a better Debt to FCF ratio (0.22) than 95.65% of its industry peers.
LWAY has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LWAY (0.02) is better than 83.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 11.75 |
ROIC/WACC1.72
WACC9%
2.3 Liquidity
LWAY has a Current Ratio of 2.30. 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 2.30, LWAY is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that LWAY should not have too much problems paying its short term obligations.
LWAY's Quick ratio of 1.75 is amongst the best of the industry. LWAY outperforms 85.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 377.78% over the past year.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.23% yearly.
Looking at the last year, LWAY shows a quite strong growth in Revenue. The Revenue has grown by 13.08% in the last year.
Measured over the past years, LWAY shows a quite strong growth in Revenue. The Revenue has been growing by 9.14% on average per year.
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5YN/A
EPS growth Q2Q166.67%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Revenue growth Q2Q17.74%
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 32.60% on average per year.
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 10.24% on average per year.
EPS Next Y42.93%
EPS Next 2Y32.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.87%
Revenue Next 2Y10.24%
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.
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
Based on the Price/Earnings ratio of 21.43, the valuation of LWAY can be described as rather expensive.
Based on the Price/Earnings ratio, LWAY is valued a bit cheaper than the industry average as 66.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. LWAY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.79, which indicates a correct valuation of LWAY.
Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.15. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
LWAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LWAY is cheaper than 63.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LWAY is valued a bit cheaper than the industry average as 66.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 12.91 |
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 an outstanding 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 32.60% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y32.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIFEWAY FOODS INC
NASDAQ:LWAY (5/17/2024, 7:11:43 PM)
After market: 18.4 -0.03 (-0.16%)18.43
-0.78 (-4.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap270.74M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 13.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y42.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.08%
Revenue growth 3Y16.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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FCF growth 3Y
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