22.08 USD
+0.08 (+0.36%)
22.08 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LWAY. LWAY was compared to 87 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 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.
- LWAY had a positive operating cash flow in the past year.
- 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.
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.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Profit Margin value of 5.47%, LWAY is doing good in the industry, outperforming 72.41% of the companies in the same industry.
- LWAY's Profit Margin has improved in the last couple of years.
- LWAY has a Operating Margin of 6.43%. This is in the better half 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.
- The Gross Margin of LWAY (26.82%) is better than 63.22% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LWAY 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 11.23. 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 11.23, LWAY belongs to the top of the industry, outperforming 93.10% 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 | 11.23 |
ROIC/WACC1.14
WACC8.86%
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 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.
- The Quick ratio of LWAY (1.83) is better than 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- The earnings per share for LWAY have decreased strongly by -40.70% 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.
- 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 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
- 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.
- 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
- The Price/Earnings ratio is 43.29, which means the current valuation is very expensive for LWAY.
- LWAY's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.25. LWAY is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 17.60, which indicates a rather expensive current valuation of LWAY.
- LWAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LWAY is cheaper than 66.67% of the companies in the same industry.
- LWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.29 | ||
| Fwd PE | 17.6 |
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 | 18.46 |
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.
- The excellent profitability rating of LWAY may justify a higher PE ratio.
- LWAY's earnings are expected to grow with 39.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
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 6 / 10 to LWAY.
What is the valuation status for 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.
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 43.29 and the Price/Book (PB) ratio is 4.06.
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%.