LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
NASDAQ:LWAY - Nasdaq - US5319141090 - Common Stock - Currency: USD
Taking everything into account, LWAY scores 7 out of 10 in our fundamental rating. LWAY was compared to 90 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 correct valuation and a medium growth rate. These ratings could make LWAY a good candidate for 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.
In the past 5 years LWAY has always been profitable.
In the past 5 years LWAY always reported a positive cash flow from operatings.
1.2 Ratios
LWAY's Return On Assets of 10.82% is amongst the best of the industry. LWAY outperforms 91.11% of its industry peers.
With a decent Return On Equity value of 13.67%, LWAY is doing good in the industry, outperforming 76.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.20%, LWAY belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
LWAY had an Average Return On Invested Capital over the past 3 years of 10.79%. This is above the industry average of 7.59%.
| 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
LWAY's Profit Margin of 5.39% is fine compared to the rest of the industry. LWAY outperforms 72.22% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
With a decent Operating Margin value of 6.30%, LWAY is doing good in the industry, outperforming 64.44% of the companies in the same industry.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY has a better Gross Margin (25.53%) than 61.11% of its industry peers.
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.
LWAY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LWAY has been reduced compared to 5 years ago.
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
An Altman-Z score of 15.46 indicates that LWAY is not in any danger for bankruptcy at the moment.
LWAY has a better Altman-Z score (15.46) 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.46 |
ROIC/WACC1
WACC10.17%
2.3 Liquidity
LWAY has a Current Ratio of 2.89. This indicates that LWAY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.89, LWAY is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 2.33 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Quick ratio of 2.33 is amongst the best of the industry. LWAY outperforms 87.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
LWAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.84%.
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 12.84%.
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)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
3.2 Future
The Earnings Per Share is expected to grow by 37.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 10.88% on average per year.
EPS Next Y52.14%
EPS Next 2Y37.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.68%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.45, LWAY can be considered very expensive at the moment.
LWAY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LWAY to the average of the S&P500 Index (26.65), we can say LWAY is valued expensively.
With a Price/Forward Earnings ratio of 21.95, LWAY is valued on the expensive side.
LWAY's Price/Forward Earnings is on the same level as the industry average.
LWAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.45 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than LWAY, based on the Enterprise Value to EBITDA ratio.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.96 | ||
| EV/EBITDA | 22.96 |
4.3 Compensation for Growth
LWAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LWAY may justify a higher PE ratio.
LWAY's earnings are expected to grow with 37.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)0.68
EPS Next 2Y37.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.4
-0.12 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.84%
Inst Owner Change-1.31%
Ins Owners15.68%
Ins Owner Change0.41%
Market Cap370.88M
Analysts82.86
Price Target30.6 (25.41%)
Short Float %3.2%
Short Ratio3.5
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)7.14%
PT rev (3m)7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-14.56%
EPS NY rev (3m)-22.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)3%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.45 | ||
| Fwd PE | 21.95 | ||
| P/S | 1.97 | ||
| P/FCF | 76.96 | ||
| P/OCF | 32.92 | ||
| P/B | 5 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 22.96 |
EPS(TTM)0.44
EY1.8%
EPS(NY)1.11
Fwd EY4.56%
FCF(TTM)0.32
FCFY1.3%
OCF(TTM)0.74
OCFY3.04%
SpS12.39
BVpS4.88
TBVpS3.7
PEG (NY)1.06
PEG (5Y)0.68
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 | 15.46 |
F-Score5
WACC10.17%
ROIC/WACC1
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)-48.84%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%-93.75%
EPS Next Y52.14%
EPS Next 2Y37.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
Revenue Next Year9.68%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.98%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year21.89%
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%