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LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis

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

22.17  -0.25 (-1.12%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to LWAY. LWAY was compared to 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make LWAY a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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.
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.
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 2024 0 5M 10M 15M

1.2 Ratios

LWAY has a Return On Assets of 9.97%. This is amongst the best in the industry. LWAY outperforms 91.01% of its industry peers.
With a decent Return On Equity value of 12.55%, LWAY is doing good in the industry, outperforming 68.54% of the companies in the same industry.
LWAY has a better Return On Invested Capital (12.26%) than 89.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LWAY is in line with the industry average of 8.83%.
The 3 year average ROIC (10.79%) for LWAY is below the current ROIC(12.26%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.97%
ROE 12.55%
ROIC 12.26%
ROA(3y)8.4%
ROA(5y)7.01%
ROE(3y)11.08%
ROE(5y)9.36%
ROIC(3y)10.79%
ROIC(5y)9.06%
LWAY Yearly ROA, ROE, ROICLWAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

LWAY has a Profit Margin of 4.83%. This is in the better half of the industry: LWAY outperforms 67.42% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
LWAY has a Operating Margin of 7.41%. This is in the better half of the industry: LWAY outperforms 68.54% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY's Gross Margin of 26.00% is fine compared to the rest of the industry. LWAY outperforms 62.92% of its industry peers.
In the last couple of years the Gross Margin of LWAY has grown nicely.
Industry RankSector Rank
OM 7.41%
PM (TTM) 4.83%
GM 26%
OM growth 3Y13.75%
OM growth 5YN/A
PM growth 3Y20.36%
PM growth 5Y55.37%
GM growth 3Y2.57%
GM growth 5Y1.97%
LWAY Yearly Profit, Operating, Gross MarginsLWAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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.
LWAY has more shares outstanding than it did 1 year ago.
LWAY has less shares outstanding than it did 5 years ago.
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.
LWAY Yearly Shares OutstandingLWAY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 15.07 indicates that LWAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LWAY (15.07) is better than 100.00% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.07
ROIC/WACC1.35
WACC9.07%
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 2024 0 20M 40M 60M

2.3 Liquidity

A Current Ratio of 2.81 indicates that LWAY has no problem at all paying its short term obligations.
LWAY has a Current ratio of 2.81. This is in the better half of the industry: LWAY outperforms 79.78% of its industry peers.
A Quick Ratio of 2.25 indicates that LWAY has no problem at all paying its short term obligations.
The Quick ratio of LWAY (2.25) is better than 85.39% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.25
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 2024 10M 20M 30M 40M

6

3. Growth

3.1 Past

The earnings per share for LWAY have decreased strongly by -23.26% 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.
Looking at the last year, LWAY shows a quite strong growth in Revenue. The Revenue has grown by 16.67% 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)-23.26%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%43.75%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%

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 50.49% on average per year.
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 11.12% on average per year.
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.03%
Revenue Next 2Y11.12%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 2026 50M 100M 150M 200M
LWAY Yearly EPS VS EstimatesLWAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2022 2023 2024 2025 2026 0 1 2 3

5

4. Valuation

4.1 Price/Earnings Ratio

LWAY is valuated quite expensively with a Price/Earnings ratio of 33.59.
LWAY's Price/Earnings is on the same level as the industry average.
LWAY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.85.
A Price/Forward Earnings ratio of 16.59 indicates a correct valuation of LWAY.
66.29% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
LWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 33.59
Fwd PE 16.59
LWAY Price Earnings VS Forward Price EarningsLWAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LWAY.
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 RankSector Rank
P/FCF 53.79
EV/EBITDA 18.8
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

LWAY's 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 50.49% in the coming years.
PEG (NY)0.43
PEG (5Y)0.41
EPS Next 2Y50.49%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

No dividends for LWAY!.
Industry RankSector Rank
Dividend Yield N/A

LIFEWAY FOODS INC

NASDAQ:LWAY (5/14/2025, 8:00:00 PM)

22.17

-0.25 (-1.12%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)05-13 2025-05-13/bmo
Earnings (Next)08-11 2025-08-11
Inst Owners23.38%
Inst Owner Change0.91%
Ins Owners15.97%
Ins Owner Change1.32%
Market Cap336.98M
Analysts82.86
Price Target28.56 (28.82%)
Short Float %4.03%
Short Ratio3.87
Dividend
Industry RankSector 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)-67.84%
Min EPS beat(2)-104.67%
Max EPS beat(2)-31.01%
EPS beat(4)1
Avg EPS beat(4)-36.94%
Min EPS beat(4)-104.67%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)16.4%
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)-6.65%
Min Revenue beat(2)-9.16%
Max Revenue beat(2)-4.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
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)5.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 33.59
Fwd PE 16.59
P/S 1.8
P/FCF 53.79
P/OCF 26
P/B 4.69
P/tB 6.26
EV/EBITDA 18.8
EPS(TTM)0.66
EY2.98%
EPS(NY)1.34
Fwd EY6.03%
FCF(TTM)0.41
FCFY1.86%
OCF(TTM)0.85
OCFY3.85%
SpS12.29
BVpS4.73
TBVpS3.54
PEG (NY)0.43
PEG (5Y)0.41
Profitability
Industry RankSector Rank
ROA 9.97%
ROE 12.55%
ROCE 18.46%
ROIC 12.26%
ROICexc 15.78%
ROICexgc 22.86%
OM 7.41%
PM (TTM) 4.83%
GM 26%
FCFM 3.35%
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-Score6
Asset Turnover2.06
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 197.79%
Cap/Sales 3.58%
Interest Coverage 141.35
Cash Conversion 75.19%
Profit Quality 69.42%
Current Ratio 2.81
Quick Ratio 2.25
Altman-Z 15.07
F-Score6
WACC9.07%
ROIC/WACC1.35
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)-23.26%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%43.75%
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
Revenue Next Year12.03%
Revenue Next 2Y11.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.53%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year60.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50.24%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-23.49%
OCF growth 3Y32.6%
OCF growth 5Y27.75%