LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
22.505 USD
+1.02 (+4.72%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LWAY has a correct valuation and a medium growth rate. This makes LWAY very considerable for 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.
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
Looking at the Return On Assets, with a value of 10.19%, LWAY belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
LWAY has a Return On Equity of 13.48%. This is amongst the best in the industry. LWAY outperforms 80.46% of its industry peers.
LWAY's Return On Invested Capital of 10.12% is amongst the best of the industry. LWAY outperforms 86.21% 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 28.38%.
| 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
Looking at the Profit Margin, with a value of 5.47%, LWAY is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
LWAY's Profit Margin has improved in the last couple of years.
The Operating Margin of LWAY (6.43%) is better than 66.67% 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 26.82%, LWAY is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
LWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| 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
LWAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
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.
2.2 Solvency
LWAY has an Altman-Z score of 11.03. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.03, LWAY belongs to the top of the industry, outperforming 96.55% 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 | N/A | ||
| Altman-Z | 11.03 |
ROIC/WACC1.16
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.30 indicates that LWAY has no problem at all paying 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 67.82% of the companies in the same industry.
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.
LWAY has a Quick ratio of 1.83. This is amongst the best in the industry. LWAY outperforms 82.76% of its industry peers.
| 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%.
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.
Looking at the last year, LWAY shows a quite strong growth in Revenue. The Revenue has grown by 12.14% in the last year.
Measured over the past years, LWAY shows a quite strong growth in Revenue. The Revenue has been growing by 14.80% on average per year.
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 45.82% yearly.
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
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 44.13, the valuation of LWAY can be described as expensive.
LWAY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.07, LWAY is valued quite expensively.
The Price/Forward Earnings ratio is 17.94, which indicates a rather expensive current valuation of LWAY.
Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than 65.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
LWAY's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
LWAY's 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 45.82% in the coming years.
PEG (NY)0.53
PEG (5Y)0.54
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 (11/21/2025, 3:44:54 PM)
22.505
+1.02 (+4.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change35.09%
Ins Owners15.59%
Ins Owner Change-3.48%
Market Cap342.75M
Revenue(TTM)204.07M
Net Income(TTM)11.16M
Analysts82.86
Price Target33.66 (49.57%)
Short Float %3.86%
Short Ratio1.44
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)16.52%
Min EPS beat(2)-19.47%
Max EPS beat(2)52.51%
EPS beat(4)1
Avg EPS beat(4)-41.62%
Min EPS beat(4)-104.67%
Max EPS beat(4)52.51%
EPS beat(8)3
Avg EPS beat(8)-23.52%
EPS beat(12)5
Avg EPS beat(12)3.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)1.86%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-6.83%
Max Revenue beat(4)1.86%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)7
Avg Revenue beat(12)-0.71%
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)20.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 17.94 | ||
| P/S | 1.68 | ||
| P/FCF | N/A | ||
| P/OCF | 42.3 | ||
| P/B | 4.14 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 17.93 |
EPS(TTM)0.51
EY2.27%
EPS(NY)1.25
Fwd EY5.57%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)0.53
OCFY2.36%
SpS13.4
BVpS5.43
TBVpS4.27
PEG (NY)0.53
PEG (5Y)0.54
Graham Number7.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 13.48% | ||
| ROCE | 15.24% | ||
| ROIC | 10.12% | ||
| ROICexc | 13.81% | ||
| ROICexgc | 19.17% | ||
| OM | 6.43% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.82% | ||
| FCFM | N/A |
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 Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 283.67% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 291.6 | ||
| Cash Conversion | 47.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 11.03 |
F-Score4
WACC8.75%
ROIC/WACC1.16
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)-40.7%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%21.05%
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.14%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%23.97%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.54%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year49.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-133.24%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-35.13%
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 8 / 10.
Can you provide the PE and PB ratios for LWAY stock?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 44.13 and the Price/Book (PB) ratio is 4.14.
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.