LIFEWAY FOODS INC (LWAY)
US5319141090 - Common Stock
Overall LWAY gets a fundamental rating of 8 out of 10. We evaluated LWAY against 93 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. An interesting combination arises when we look at growth and value: LWAY is growing strongly while it also seems undervalued. This makes LWAY very considerable for value and growth and 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.
LWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LWAY has a Return On Assets of 15.67%. This is amongst the best in the industry. LWAY outperforms 96.74% of its industry peers.
LWAY has a Return On Equity of 20.41%. This is amongst the best in the industry. LWAY outperforms 92.39% of its industry peers.
With an excellent Return On Invested Capital value of 16.67%, LWAY belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LWAY is in line with the industry average of 7.81%.
The 3 year average ROIC (7.97%) for LWAY is below the current ROIC(16.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.67% | ||
| ROE | 20.41% | ||
| ROIC | 16.67% |
ROA(3y)6.63%
ROA(5y)5.2%
ROE(3y)9.14%
ROE(5y)7.08%
ROIC(3y)7.97%
ROIC(5y)N/A
1.3 Margins
LWAY has a Profit Margin of 7.77%. This is in the better half of the industry: LWAY outperforms 79.35% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
With an excellent Operating Margin value of 11.46%, LWAY belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
LWAY's Operating Margin has improved in the last couple of years.
The Gross Margin of LWAY (27.42%) is better than 67.39% of its industry peers.
LWAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 7.77% | ||
| GM | 27.42% |
OM growth 3Y30.24%
OM growth 5YN/A
PM growth 3Y31.28%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
LWAY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
2.2 Solvency
An Altman-Z score of 9.86 indicates that LWAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LWAY (9.86) is better than 96.74% of its industry peers.
The Debt to FCF ratio of LWAY is 0.24, which is an excellent value as it means it would take LWAY, only 0.24 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.24, LWAY belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
LWAY has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.02, LWAY belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 9.86 |
ROIC/WACC1.9
WACC8.75%
2.3 Liquidity
LWAY has a Current Ratio of 2.53. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.53, LWAY is doing good in the industry, outperforming 78.26% of the companies in the same industry.
A Quick Ratio of 1.98 indicates that LWAY should not have too much problems paying its short term obligations.
LWAY's Quick ratio of 1.98 is amongst the best of the industry. LWAY outperforms 85.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 377.78% over the past year.
The Earnings Per Share has been growing by 58.23% on average over the past years. This is a very strong growth
LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.78%.
Measured over the past years, LWAY shows a quite strong growth in Revenue. The Revenue has been growing by 9.14% on average per year.
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5YN/A
EPS Q2Q%166.67%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Sales Q2Q%17.76%
3.2 Future
The Earnings Per Share is expected to grow by 25.84% 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 13.77% yearly.
EPS Next Y18.11%
EPS Next 2Y25.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.83%
Revenue Next 2Y13.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.17, the valuation of LWAY can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LWAY indicates a somewhat cheap valuation: LWAY is cheaper than 76.09% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LWAY to the average of the S&P500 Index (28.42), we can say LWAY is valued rather cheaply.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of LWAY.
90.22% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.02. LWAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LWAY is valued cheaper than 85.87% of the companies in the same industry.
LWAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LWAY is cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 7.61 |
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.
LWAY's earnings are expected to grow with 25.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y25.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIFEWAY FOODS INC
NASDAQ:LWAY (6/14/2024, 7:21:16 PM)
12.19
-0.58 (-4.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap179.31M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 10.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.67% | ||
| ROE | 20.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.46% | ||
| PM (TTM) | 7.77% | ||
| GM | 27.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)377.78%
EPS 3Y58.23%
EPS 5Y
EPS Q2Q%
EPS Next Y18.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.78%
Revenue growth 3Y16.22%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y