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LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis

NASDAQ:LWAY - Nasdaq - US5319141090 - Common Stock - Currency: USD

22.47  +0.49 (+2.23%)

After market: 22.47 0 (0%)

Fundamental Rating

7

Overall LWAY gets a fundamental rating of 7 out of 10. We evaluated LWAY against 91 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, LWAY could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year LWAY was profitable.
LWAY had a positive operating cash flow in the past year.
LWAY had positive earnings in each of the past 5 years.
LWAY had a positive operating cash flow in each of the past 5 years.
LWAY Yearly Net Income VS EBIT VS OCF VS FCFLWAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M 10M 15M

1.2 Ratios

With an excellent Return On Assets value of 14.41%, LWAY belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
With an excellent Return On Equity value of 18.39%, LWAY belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.98%, LWAY belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LWAY is in line with the industry average of 8.97%.
The 3 year average ROIC (7.97%) for LWAY is below the current ROIC(14.98%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 14.41%
ROE 18.39%
ROIC 14.98%
ROA(3y)6.63%
ROA(5y)5.2%
ROE(3y)9.14%
ROE(5y)7.08%
ROIC(3y)7.97%
ROIC(5y)N/A
LWAY Yearly ROA, ROE, ROICLWAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

1.3 Margins

LWAY's Profit Margin of 7.23% is fine compared to the rest of the industry. LWAY outperforms 79.07% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
The Operating Margin of LWAY (10.38%) is better than 74.42% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
The Gross Margin of LWAY (26.63%) is better than 62.79% 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 RankSector Rank
OM 10.38%
PM (TTM) 7.23%
GM 26.63%
OM growth 3Y30.24%
OM growth 5YN/A
PM growth 3Y31.28%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y1.14%
LWAY Yearly Profit, Operating, Gross MarginsLWAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

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9

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.
The number of shares outstanding for LWAY has been reduced compared to 5 years ago.
Compared to 1 year ago, LWAY has an improved debt to assets ratio.
LWAY Yearly Shares OutstandingLWAY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
LWAY Yearly Total Debt VS Total AssetsLWAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 14.07 indicates that LWAY is not in any danger for bankruptcy at the moment.
LWAY has a Altman-Z score of 14.07. This is amongst the best in the industry. LWAY outperforms 98.84% of its industry peers.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 14.07
ROIC/WACC1.64
WACC9.11%
LWAY Yearly LT Debt VS Equity VS FCFLWAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M

2.3 Liquidity

LWAY has a Current Ratio of 2.68. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
LWAY has a Current ratio of 2.68. This is in the better half of the industry: LWAY outperforms 79.07% of its industry peers.
LWAY has a Quick Ratio of 2.17. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.17, LWAY belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.68
Quick Ratio 2.17
LWAY Yearly Current Assets VS Current LiabilitesLWAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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8

3. Growth

3.1 Past

LWAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.36%, which is quite impressive.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.23% yearly.
LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.27%.
The Revenue has been growing by 9.14% on average over the past years. This is quite good.
EPS 1Y (TTM)56.36%
EPS 3Y58.23%
EPS 5YN/A
EPS Q2Q%-17.39%
Revenue 1Y (TTM)18.27%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Sales Q2Q%12.71%

3.2 Future

LWAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.95% yearly.
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 15.15% on average per year.
EPS Next Y7.37%
EPS Next 2Y20.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.61%
Revenue Next 2Y15.15%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LWAY Yearly Revenue VS EstimatesLWAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
LWAY Yearly EPS VS EstimatesLWAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 26.13, which means the current valuation is very expensive for LWAY.
LWAY's Price/Earnings is on the same level as the industry average.
LWAY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.21, the valuation of LWAY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than the industry average as 66.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 96.30, LWAY is valued rather cheaply.
Industry RankSector Rank
PE 26.13
Fwd PE 20.21
LWAY Price Earnings VS Forward Price EarningsLWAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

LWAY's Enterprise Value to EBITDA is on the same level as the industry average.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.31
EV/EBITDA 13.76
LWAY Per share dataLWAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 20.95% in the coming years.
PEG (NY)3.55
PEG (5Y)N/A
EPS Next 2Y20.95%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

LWAY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LIFEWAY FOODS INC

NASDAQ:LWAY (2/14/2025, 8:00:00 PM)

After market: 22.47 0 (0%)

22.47

+0.49 (+2.23%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)N/A N/A
Inst Owners20.16%
Inst Owner Change-18.41%
Ins Owners15.91%
Ins Owner Change0.67%
Market Cap333.01M
Analysts80
Price Target27.03 (20.29%)
Short Float %4.79%
Short Ratio3.3
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)-4.23%
Min EPS beat(2)-31.01%
Max EPS beat(2)22.55%
EPS beat(4)2
Avg EPS beat(4)-5.43%
Min EPS beat(4)-34.64%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)25.74%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-9.16%
Max Revenue beat(2)5.92%
Revenue beat(4)3
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)6
Avg Revenue beat(8)0.11%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-17.02%
EPS NQ rev (3m)-27.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.04%
Valuation
Industry RankSector Rank
PE 26.13
Fwd PE 20.21
P/S 1.83
P/FCF 24.31
P/OCF 16.37
P/B 4.66
P/tB 6.24
EV/EBITDA 13.76
EPS(TTM)0.86
EY3.83%
EPS(NY)1.11
Fwd EY4.95%
FCF(TTM)0.92
FCFY4.11%
OCF(TTM)1.37
OCFY6.11%
SpS12.28
BVpS4.83
TBVpS3.6
PEG (NY)3.55
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 14.41%
ROE 18.39%
ROCE 25.32%
ROIC 14.98%
ROICexc 20.67%
ROICexgc 31.17%
OM 10.38%
PM (TTM) 7.23%
GM 26.63%
FCFM 7.53%
ROA(3y)6.63%
ROA(5y)5.2%
ROE(3y)9.14%
ROE(5y)7.08%
ROIC(3y)7.97%
ROIC(5y)N/A
ROICexc(3y)9.73%
ROICexc(5y)N/A
ROICexgc(3y)15.44%
ROICexgc(5y)N/A
ROCE(3y)13.48%
ROCE(5y)N/A
ROICexcg growth 3Y47.7%
ROICexcg growth 5YN/A
ROICexc growth 3Y44.27%
ROICexc growth 5YN/A
OM growth 3Y30.24%
OM growth 5YN/A
PM growth 3Y31.28%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y1.14%
F-Score8
Asset Turnover1.99
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 202.07%
Cap/Sales 3.65%
Interest Coverage 111.13
Cash Conversion 91.71%
Profit Quality 104.12%
Current Ratio 2.68
Quick Ratio 2.17
Altman-Z 14.07
F-Score8
WACC9.11%
ROIC/WACC1.64
Cap/Depr(3y)106.89%
Cap/Depr(5y)82.93%
Cap/Sales(3y)2.26%
Cap/Sales(5y)1.98%
Profit Quality(3y)93.69%
Profit Quality(5y)189.48%
High Growth Momentum
Growth
EPS 1Y (TTM)56.36%
EPS 3Y58.23%
EPS 5YN/A
EPS Q2Q%-17.39%
EPS Next Y7.37%
EPS Next 2Y20.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.27%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Sales Q2Q%12.71%
Revenue Next Year18.61%
Revenue Next 2Y15.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y43.01%
EBIT growth 3Y51.37%
EBIT growth 5YN/A
EBIT Next Year31.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2639.2%
FCF growth 3Y41.01%
FCF growth 5YN/A
OCF growth 1Y509.04%
OCF growth 3Y38.4%
OCF growth 5Y47.58%