LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
NASDAQ:LWAY - Nasdaq - US5319141090 - Common Stock - Currency: USD
Overall LWAY gets a fundamental rating of 7 out of 10. We evaluated LWAY against 89 industry peers in the Food Products industry. LWAY gets an excellent profitability rating and is at the same time showing great financial health properties. LWAY has a decent growth rate and is not valued too expensively. These ratings would make LWAY suitable for quality investing!
1. Profitability
1.1 Basic Checks
LWAY had positive earnings in the past year.
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
LWAY has a Return On Assets of 10.82%. This is amongst the best in the industry. LWAY outperforms 92.13% of its industry peers.
LWAY has a Return On Equity of 13.67%. This is in the better half of the industry: LWAY outperforms 77.53% of its industry peers.
LWAY's Return On Invested Capital of 10.20% is amongst the best of the industry. LWAY outperforms 85.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LWAY is above the industry average of 7.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.82% | ||
| ROE | 13.67% | ||
| ROIC | 10.2% |
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's Profit Margin of 5.39% is fine compared to the rest of the industry. LWAY outperforms 73.03% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
The Operating Margin of LWAY (6.30%) is better than 64.04% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY has a better Gross Margin (25.53%) than 61.80% of its industry peers.
In the last couple of years the Gross Margin of LWAY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.3% | ||
| PM (TTM) | 5.39% | ||
| GM | 25.53% |
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 14.56. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LWAY (14.56) is better than 100.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.56 |
ROIC/WACC1.13
WACC9.03%
2.3 Liquidity
LWAY has a Current Ratio of 2.89. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LWAY (2.89) is better than 79.78% of its industry peers.
LWAY has a Quick Ratio of 2.33. 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 2.33, LWAY belongs to the top of the industry, outperforming 86.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The earnings per share for LWAY have decreased strongly by -48.84% 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 12.84% in the last year.
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)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
3.2 Future
The Earnings Per Share is expected to grow by 35.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y78.07%
EPS Next 2Y35.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.49%
Revenue Next 2Y9.43%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LWAY is valuated quite expensively with a Price/Earnings ratio of 51.35.
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 (26.25), we can say LWAY is valued expensively.
Based on the Price/Forward Earnings ratio of 20.90, the valuation of LWAY can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LWAY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.15. LWAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.35 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
LWAY's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LWAY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.27 | ||
| EV/EBITDA | 21.05 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as LWAY's earnings are expected to grow with 35.37% in the coming years.
PEG (NY)0.66
PEG (5Y)0.63
EPS Next 2Y35.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.595
+0.45 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners23.38%
Inst Owner Change-1.31%
Ins Owners15.97%
Ins Owner Change0.25%
Market Cap343.44M
Analysts82.86
Price Target28.56 (26.4%)
Short Float %4.03%
Short Ratio3.87
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)0
Avg EPS beat(2)-99.75%
Min EPS beat(2)-104.67%
Max EPS beat(2)-94.84%
EPS beat(4)1
Avg EPS beat(4)-51.99%
Min EPS beat(4)-104.67%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)7.86%
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)0
Avg Revenue beat(2)-5.48%
Min Revenue beat(2)-6.83%
Max Revenue beat(2)-4.14%
Revenue beat(4)1
Avg Revenue beat(4)-3.55%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)5
Avg Revenue beat(8)-0.43%
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)0%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.65%
Revenue NQ rev (1m)-7.41%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-4.94%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.35 | ||
| Fwd PE | 20.9 | ||
| P/S | 1.82 | ||
| P/FCF | 71.27 | ||
| P/OCF | 30.49 | ||
| P/B | 4.63 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 21.05 |
EPS(TTM)0.44
EY1.95%
EPS(NY)1.08
Fwd EY4.79%
FCF(TTM)0.32
FCFY1.4%
OCF(TTM)0.74
OCFY3.28%
SpS12.39
BVpS4.88
TBVpS3.7
PEG (NY)0.66
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.82% | ||
| ROE | 13.67% | ||
| ROCE | 15.35% | ||
| ROIC | 10.2% | ||
| ROICexc | 13.62% | ||
| ROICexgc | 19.74% | ||
| OM | 6.3% | ||
| PM (TTM) | 5.39% | ||
| GM | 25.53% | ||
| FCFM | 2.56% |
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-Score5
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 182.79% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 201.05 | ||
| Cash Conversion | 73.21% | ||
| Profit Quality | 47.53% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 14.56 |
F-Score5
WACC9.03%
ROIC/WACC1.13
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)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
EPS Next Y78.07%
EPS Next 2Y35.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
Revenue Next Year6.49%
Revenue Next 2Y9.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.98%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year21.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.49%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y46.88%
OCF growth 3Y32.6%
OCF growth 5Y27.75%