LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
22.27 USD
+0.36 (+1.64%)
22.27 USD
0 (0%)
Taking everything into account, LWAY scores 7 out of 10 in our fundamental rating. LWAY was compared to 86 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
In the past year LWAY was profitable.
In the past year LWAY had a positive cash flow from operations.
In the past 5 years LWAY has always been profitable.
LWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LWAY (10.79%) is better than 94.19% of its industry peers.
LWAY has a Return On Equity of 13.48%. This is amongst the best in the industry. LWAY outperforms 80.23% of its industry peers.
The Return On Invested Capital of LWAY (9.95%) is better than 86.05% of its industry peers.
LWAY had an Average Return On Invested Capital over the past 3 years of 10.79%. This is significantly below the industry average of 29.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROIC | 9.95% |
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 has a better Profit Margin (5.49%) than 72.09% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
The Operating Margin of LWAY (6.36%) is better than 63.95% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY has a Gross Margin of 26.01%. This is in the better half of the industry: LWAY outperforms 63.95% of its industry peers.
LWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% |
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
An Altman-Z score of 14.35 indicates that LWAY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.35, LWAY belongs to the best of the industry, outperforming 97.67% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.35 |
ROIC/WACC1.14
WACC8.76%
2.3 Liquidity
LWAY has a Current Ratio of 3.03. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LWAY (3.03) is better than 83.72% of its industry peers.
A Quick Ratio of 2.40 indicates that LWAY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.40, LWAY belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.70%.
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%.
The Revenue has been growing by 14.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.7%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%21.05%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%23.96%
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 45.82% on average per year.
The Revenue is expected to grow by 12.78% on average over the next years. This is quite good.
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.76%
Revenue Next 2Y12.78%
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
Based on the Price/Earnings ratio of 43.67, the valuation of LWAY can be described as expensive.
LWAY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. LWAY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 17.75, which indicates a rather expensive current valuation of LWAY.
65.12% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
LWAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.67 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LWAY is on the same level as its industry peers.
LWAY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 257.73 | ||
| EV/EBITDA | 19.96 |
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.
The excellent profitability rating of LWAY may justify a higher PE ratio.
LWAY's earnings are expected to grow with 45.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)0.53
EPS Next 2Y45.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.27
+0.36 (+1.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change-1.98%
Ins Owners15.59%
Ins Owner Change-3.38%
Market Cap339.17M
Revenue(TTM)186.82M
Net Income(TTM)10.61M
Analysts82.86
Price Target33.66 (51.15%)
Short Float %3.9%
Short Ratio1.58
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)1
Avg EPS beat(2)-21.17%
Min EPS beat(2)-94.84%
Max EPS beat(2)52.51%
EPS beat(4)1
Avg EPS beat(4)-44.5%
Min EPS beat(4)-104.67%
Max EPS beat(4)52.51%
EPS beat(8)4
Avg EPS beat(8)-15.97%
EPS beat(12)6
Avg EPS beat(12)45.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-6.83%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)-0.29%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)20.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.67 | ||
| Fwd PE | 17.75 | ||
| P/S | 1.76 | ||
| P/FCF | 257.73 | ||
| P/OCF | 39.28 | ||
| P/B | 4.31 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 19.96 |
EPS(TTM)0.51
EY2.29%
EPS(NY)1.25
Fwd EY5.63%
FCF(TTM)0.09
FCFY0.39%
OCF(TTM)0.57
OCFY2.55%
SpS12.67
BVpS5.17
TBVpS4
PEG (NY)0.52
PEG (5Y)0.53
Graham Number7.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 13.48% | ||
| ROCE | 14.97% | ||
| ROIC | 9.95% | ||
| ROICexc | 13.42% | ||
| ROICexgc | 18.98% | ||
| OM | 6.36% | ||
| PM (TTM) | 5.49% | ||
| GM | 26.01% | ||
| FCFM | 0.68% |
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%
ROICexgc growth 3Y19.7%
ROICexgc 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-Score4
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 200.06% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 350.6 | ||
| Cash Conversion | 54.2% | ||
| Profit Quality | 12.41% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z | 14.35 |
F-Score4
WACC8.76%
ROIC/WACC1.14
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)-40.7%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%21.05%
EPS Next Y83.25%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%23.96%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.85%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year49.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.94%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-13.49%
OCF growth 3Y32.6%
OCF growth 5Y27.75%
LIFEWAY FOODS INC / LWAY FAQ
Can you provide the ChartMill fundamental rating for LIFEWAY FOODS INC?
ChartMill assigns a fundamental rating of 7 / 10 to LWAY.
What is the valuation status of LIFEWAY FOODS INC (LWAY) stock?
ChartMill assigns a valuation rating of 5 / 10 to LIFEWAY FOODS INC (LWAY). This can be considered as Fairly Valued.
How profitable is LIFEWAY FOODS INC (LWAY) stock?
LIFEWAY FOODS INC (LWAY) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LWAY stock?
The Price/Earnings (PE) ratio for LIFEWAY FOODS INC (LWAY) is 43.67 and the Price/Book (PB) ratio is 4.31.
Can you provide the expected EPS growth for LWAY stock?
The Earnings per Share (EPS) of LIFEWAY FOODS INC (LWAY) is expected to grow by 83.25% in the next year.