LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
33.82 USD
+0.32 (+0.96%)
33.82 USD
0 (0%)
Taking everything into account, LWAY scores 6 out of 10 in our fundamental rating. LWAY was compared to 89 industry peers in the Food Products industry. LWAY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LWAY is not valued too expensively and it also shows a decent growth rate. These ratings would make LWAY suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LWAY was profitable.
In the past year LWAY had a positive cash flow from operations.
Each year in the past 5 years LWAY has been profitable.
Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.79%, LWAY belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
LWAY's Return On Equity of 13.48% is fine compared to the rest of the industry. LWAY outperforms 77.53% of its industry peers.
LWAY has a better Return On Invested Capital (9.95%) than 82.02% 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 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROIC | 9.95% |
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 Profit Margin of 5.49%. This is in the better half of the industry: LWAY outperforms 71.91% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
The Operating Margin of LWAY (6.36%) is better than 64.04% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
The Gross Margin of LWAY (26.01%) is better than 61.80% of its industry peers.
LWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% |
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.
The number of shares outstanding for LWAY has been reduced compared to 5 years ago.
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 19.75. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LWAY (19.75) is better than 97.75% 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 | 0 | ||
| Altman-Z | 19.75 |
ROIC/WACC1.15
WACC8.67%
2.3 Liquidity
A Current Ratio of 3.03 indicates that LWAY has no problem at all paying its short term obligations.
The Current ratio of LWAY (3.03) is better than 82.02% of its industry peers.
LWAY has a Quick Ratio of 2.40. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.40, LWAY belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.78%.
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 9.18%.
LWAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.80% yearly.
EPS 1Y (TTM)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%9.65%
3.2 Future
The Earnings Per Share is expected to grow by 45.82% on average over the next years. This is a very strong growth
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
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.
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 71.96, the valuation of LWAY can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LWAY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.20, LWAY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 26.96, the valuation of LWAY can be described as expensive.
LWAY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. LWAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.96 | ||
| Fwd PE | 26.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LWAY is valued a bit more expensive than the industry average as 64.04% of the companies are valued more cheaply.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 391.4 | ||
| EV/EBITDA | 31 |
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 a very decent profitability rating, which may justify a higher PE ratio.
LWAY's earnings are expected to grow with 45.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)0.88
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 |
33.82
+0.32 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.84%
Inst Owner Change-1.56%
Ins Owners15.61%
Ins Owner Change-1.71%
Market Cap515.08M
Analysts82.86
Price Target33.66 (-0.47%)
Short Float %2.56%
Short Ratio2.09
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)-21.17%
Min EPS beat(2)-94.84%
Max EPS beat(2)52.51%
EPS beat(4)1
Avg EPS beat(4)-44.5%
Min EPS beat(4)-104.67%
Max EPS beat(4)52.51%
EPS beat(8)4
Avg EPS beat(8)-15.97%
EPS beat(12)6
Avg EPS beat(12)45.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-6.83%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)-0.29%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)10%
PT rev (3m)17.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)20.45%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.84%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)4.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.96 | ||
| Fwd PE | 26.96 | ||
| P/S | 2.67 | ||
| P/FCF | 391.4 | ||
| P/OCF | 59.66 | ||
| P/B | 6.55 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 31 |
EPS(TTM)0.47
EY1.39%
EPS(NY)1.25
Fwd EY3.71%
FCF(TTM)0.09
FCFY0.26%
OCF(TTM)0.57
OCFY1.68%
SpS12.67
BVpS5.17
TBVpS4
PEG (NY)0.86
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROCE | 14.97% | ||
| ROIC | 9.95% | ||
| ROICexc | 13.42% | ||
| ROICexgc | 18.98% | ||
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% | ||
| FCFM | 0.68% |
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%
ROICexcg growth 3Y19.7%
ROICexcg 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 Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 200.06% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 350.6 | ||
| Cash Conversion | 54.2% | ||
| Profit Quality | 12.41% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z | 19.75 |
F-Score4
WACC8.67%
ROIC/WACC1.15
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)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.18%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%9.65%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.85%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year8.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.94%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-13.49%
OCF growth 3Y32.6%
OCF growth 5Y27.75%