LIFEWAY FOODS INC (LWAY)
US5319141090 - Common Stock
Taking everything into account, LWAY scores 7 out of 10 in our fundamental rating. LWAY was compared to 92 industry peers in the Food Products industry. LWAY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LWAY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes LWAY very considerable for growth and 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.
LWAY had positive earnings in each of the past 5 years.
Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LWAY (13.92%) is better than 95.60% of its industry peers.
LWAY has a better Return On Equity (18.81%) than 87.91% of its industry peers.
LWAY has a better Return On Invested Capital (15.46%) than 96.70% of its industry peers.
LWAY had an Average Return On Invested Capital over the past 3 years of 7.97%. This is in line with the industry average of 7.59%.
The last Return On Invested Capital (15.46%) for LWAY is above the 3 year average (7.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROIC | 15.46% |
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's Profit Margin of 7.10% is fine compared to the rest of the industry. LWAY outperforms 75.82% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
LWAY's Operating Margin of 10.62% is amongst the best of the industry. LWAY outperforms 80.22% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 26.51%, LWAY is doing good in the industry, outperforming 65.93% of the companies in the same industry.
LWAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LWAY is still creating some value.
Compared to 1 year ago, LWAY has more shares outstanding
LWAY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LWAY has an improved debt to assets ratio.
2.2 Solvency
LWAY has an Altman-Z score of 14.06. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.06, LWAY belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
LWAY has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
The Debt to FCF ratio of LWAY (0.22) is better than 95.60% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that LWAY is not too dependend on debt financing.
LWAY's Debt to Equity ratio of 0.02 is amongst the best of the industry. LWAY outperforms 83.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 14.06 |
ROIC/WACC1.69
WACC9.17%
2.3 Liquidity
A Current Ratio of 2.30 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Current ratio of 2.30 is fine compared to the rest of the industry. LWAY outperforms 75.82% of its industry peers.
LWAY has a Quick Ratio of 1.75. This is a normal value and indicates that LWAY is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.75, LWAY belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1166.67% over the past year.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.23% yearly.
The Revenue has grown by 13.11% in the past year. This is quite good.
The Revenue has been growing by 9.14% on average over the past years. This is quite good.
EPS 1Y (TTM)1166.67%
EPS 3Y58.23%
EPS 5YN/A
EPS growth Q2Q420%
Revenue 1Y (TTM)13.11%
Revenue growth 3Y16.22%
Revenue growth 5Y9.14%
Revenue growth Q2Q17.45%
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 32.60% on average per year.
LWAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.24% yearly.
EPS Next Y42.93%
EPS Next 2Y32.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.87%
Revenue Next 2Y10.24%
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 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
With a Price/Earnings ratio of 32.04, LWAY can be considered very expensive at the moment.
LWAY's Price/Earnings is on the same level as the industry average.
LWAY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 22.42, which indicates a rather expensive current valuation of LWAY.
Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LWAY to the average of the S&P500 Index (20.88), we can say LWAY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 22.42 |
4.2 Price Multiples
LWAY's Enterprise Value to EBITDA ratio is in line with the industry average.
LWAY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.41 | ||
| EV/EBITDA | 16.96 |
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 32.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y32.6%
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 (5/3/2024, 7:04:31 PM)
After market: 24.7 +0.35 (+1.44%)24.35
+0.35 (+1.46%)
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 Cap357.70M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 22.42 | ||
| 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)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 18.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.62% | ||
| PM (TTM) | 7.1% | ||
| GM | 26.51% | ||
| 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 Turnover1.96
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 | 2.3 | ||
| Quick Ratio | 1.75 | ||
| 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)
Growth
EPS 1Y (TTM)1166.67%
EPS 3Y58.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y42.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.11%
Revenue growth 3Y16.22%
Revenue growth 5Y
Revenue growth 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