22.02 USD
-0.06 (-0.27%)
22.02 USD
0 (0%)
Overall LWAY gets a fundamental rating of 6 out of 10. We evaluated LWAY against 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 decent growth rate and is not valued too expensively. 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.
- In the past 5 years LWAY has always been profitable.
- Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
- LWAY has a better Return On Assets (10.19%) than 94.25% of its industry peers.
- Looking at the Return On Equity, with a value of 13.48%, LWAY belongs to the top 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
- Looking at the Profit Margin, with a value of 5.47%, LWAY is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of LWAY has grown nicely.
- The Operating Margin of LWAY (6.43%) is better than 67.82% of its industry peers.
- LWAY's Operating Margin has improved in the last couple of years.
- LWAY has a Gross Margin of 26.82%. This is in the better half of the industry: LWAY outperforms 63.22% of its industry peers.
- In the last couple of years the Gross Margin of LWAY has grown nicely.
| 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.
- Compared to 1 year ago, LWAY has more shares outstanding
- 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
- An Altman-Z score of 11.23 indicates that LWAY is not in any danger for bankruptcy at the moment.
- LWAY has a Altman-Z score of 11.23. This is amongst the best in the industry. LWAY outperforms 93.10% 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 | N/A | ||
| Altman-Z | 11.23 |
ROIC/WACC1.15
WACC8.84%
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.
- A Quick Ratio of 1.83 indicates that LWAY should not have too much problems paying its short term obligations.
- LWAY has a Quick ratio of 1.83. This is amongst the best in the industry. LWAY outperforms 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.
- 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 12.14%.
- 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
- Based on estimates for the next years, LWAY will show a very strong growth in Earnings Per Share. The EPS will grow by 39.79% on average per year.
- LWAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.67% yearly.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 43.18, which means the current valuation is very expensive for LWAY.
- LWAY's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LWAY to the average of the S&P500 Index (28.87), we can say LWAY is valued slightly more expensively.
- A Price/Forward Earnings ratio of 17.55 indicates a rather expensive valuation of LWAY.
- Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.18 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
- LWAY's Enterprise Value to EBITDA ratio is in line with the industry average.
| 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.
- 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 39.79% in the coming years.
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 43.18 and the Price/Book (PB) ratio is 4.05.
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%.