Logo image of LWAY

LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis

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

23.555  -0.16 (-0.65%)

After market: 23.555 0 (0%)

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. Both the health and profitability get an excellent rating, making LWAY a very profitable company, without any liquidiy or solvency issues. LWAY has a correct valuation and a medium growth rate. With these ratings, LWAY could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

1. Profitability

1.1 Basic Checks

LWAY had positive earnings in the past year.
LWAY had a positive operating cash flow in the past year.
In the past 5 years LWAY has always been profitable.
In the past 5 years LWAY always reported a positive cash flow from operatings.
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's Return On Assets of 9.97% is amongst the best of the industry. LWAY outperforms 91.01% of its industry peers.
LWAY has a Return On Equity of 12.55%. This is in the better half of the industry: LWAY outperforms 68.54% of its industry peers.
LWAY has a Return On Invested Capital of 12.26%. This is amongst the best in the industry. LWAY outperforms 89.89% of its industry peers.
LWAY had an Average Return On Invested Capital over the past 3 years of 10.79%. This is in line with the industry average of 9.00%.
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

With a decent Profit Margin value of 4.83%, LWAY is doing good in the industry, outperforming 67.42% of the companies in the same industry.
In the last couple of years the Profit Margin of LWAY has grown nicely.
LWAY's Operating Margin of 7.41% is fine compared to the rest of the industry. LWAY outperforms 68.54% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
LWAY's Gross Margin of 26.00% is fine compared to the rest of the industry. LWAY outperforms 62.92% of its industry peers.
LWAY's Gross Margin has improved in the last couple of years.
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

More info and screens

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.
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.
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

LWAY has an Altman-Z score of 15.70. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.70, LWAY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.7
ROIC/WACC1.38
WACC8.87%
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.
Looking at the Current ratio, with a value of 2.81, LWAY is in the better half of the industry, outperforming 79.78% of the companies in the same industry.
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

More info and screens

6

3. Growth

3.1 Past

The earnings per share for LWAY have decreased strongly by -22.37% in the last year.
The Earnings Per Share has been growing by 81.84% 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 16.67%.
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)-22.37%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-103.85%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%11.5%

3.2 Future

LWAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.49% yearly.
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

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 39.92, which means the current valuation is very expensive for LWAY.
The rest of the industry has a similar Price/Earnings ratio as LWAY.
LWAY is valuated rather expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.42, LWAY is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LWAY is on the same level as its industry peers.
LWAY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.92
Fwd PE 22.42
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.
LWAY's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 57.15
EV/EBITDA 19.94
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

The 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 50.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)0.49
EPS Next 2Y50.49%
EPS Next 3YN/A

More info and screens

0

5. Dividend

5.1 Amount

LWAY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

LIFEWAY FOODS INC

NASDAQ:LWAY (5/2/2025, 4:30:00 PM)

After market: 23.555 0 (0%)

23.555

-0.16 (-0.65%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)03-14 2025-03-14/bmo
Earnings (Next)05-19 2025-05-19
Inst Owners23.38%
Inst Owner Change-0.13%
Ins Owners15.97%
Ins Owner Change1.32%
Market Cap358.04M
Analysts82.86
Price Target28.56 (21.25%)
Short Float %4.04%
Short Ratio4.11
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)3.19%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 39.92
Fwd PE 22.42
P/S 1.92
P/FCF 57.15
P/OCF 27.62
P/B 4.98
P/tB 6.65
EV/EBITDA 19.94
EPS(TTM)0.59
EY2.5%
EPS(NY)1.05
Fwd EY4.46%
FCF(TTM)0.41
FCFY1.75%
OCF(TTM)0.85
OCFY3.62%
SpS12.29
BVpS4.73
TBVpS3.54
PEG (NY)0.51
PEG (5Y)0.49
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 15.7
F-Score6
WACC8.87%
ROIC/WACC1.38
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)-22.37%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-103.85%
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%11.5%
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%