LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
NASDAQ:LWAY - US5319141090 - Common Stock
30.41 USD
-0.54 (-1.74%)
Overall LWAY gets a fundamental rating of 6 out of 10. We evaluated LWAY against 90 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 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.
LWAY had a positive operating cash flow in the past year.
In the past 5 years LWAY has always been profitable.
Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
LWAY's Return On Assets of 10.82% is amongst the best of the industry. LWAY outperforms 92.22% of its industry peers.
The Return On Equity of LWAY (13.67%) is better than 75.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.20%, LWAY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LWAY is significantly below the industry average of 27.81%.
| 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
Looking at the Profit Margin, with a value of 5.39%, LWAY is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
LWAY's Profit Margin has improved in the last couple of years.
LWAY has a better Operating Margin (6.30%) than 64.44% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
The Gross Margin of LWAY (25.53%) is comparable to the rest of the industry.
LWAY's Gross Margin has improved in the last couple of years.
| 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
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
Compared to 5 years ago, LWAY has less shares outstanding
LWAY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LWAY has an Altman-Z score of 18.25. This indicates that LWAY is financially healthy and has little risk of bankruptcy at the moment.
LWAY's Altman-Z score of 18.25 is amongst the best of the industry. LWAY outperforms 97.78% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.25 |
ROIC/WACC1.15
WACC8.89%
2.3 Liquidity
A Current Ratio of 2.89 indicates that LWAY has no problem at all paying its short term obligations.
LWAY has a Current ratio of 2.89. This is in the better half of the industry: LWAY outperforms 80.00% 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.
LWAY has a better Quick ratio (2.33) than 88.89% of its industry peers.
| 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 -47.78% 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)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%9.65%
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.
LWAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.78% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 64.70, LWAY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LWAY.
LWAY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.14.
LWAY is valuated rather expensively with a Price/Forward Earnings ratio of 24.24.
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 22.80. LWAY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.7 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LWAY is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.11 | ||
| EV/EBITDA | 28.83 |
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 decent 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 45.82% in the coming years.
PEG (NY)0.78
PEG (5Y)0.79
EPS Next 2Y45.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LWAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LWAY (8/27/2025, 8:02:05 PM)
30.41
-0.54 (-1.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.84%
Inst Owner Change-1.56%
Ins Owners15.61%
Ins Owner Change-0.12%
Market Cap463.14M
Analysts82.86
Price Target33.66 (10.69%)
Short Float %3.74%
Short Ratio3.56
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)10%
PT rev (3m)17.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)20.45%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)4.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.7 | ||
| Fwd PE | 24.24 | ||
| P/S | 2.46 | ||
| P/FCF | 96.11 | ||
| P/OCF | 41.11 | ||
| P/B | 6.24 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 28.83 |
EPS(TTM)0.47
EY1.55%
EPS(NY)1.25
Fwd EY4.13%
FCF(TTM)0.32
FCFY1.04%
OCF(TTM)0.74
OCFY2.43%
SpS12.36
BVpS4.87
TBVpS3.69
PEG (NY)0.78
PEG (5Y)0.79
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 | 18.25 |
F-Score5
WACC8.89%
ROIC/WACC1.15
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)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
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%9.65%
Revenue Next Year11.76%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.98%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year8.83%
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%