LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
USA - NASDAQ:LWAY - US5319141090 - Common Stock
23.99 USD
-0.24 (-0.99%)
23.99 USD
0 (0%)
LWAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 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 is not valued too expensively and it also shows a decent growth rate. This makes LWAY very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LWAY was profitable.
LWAY had a positive operating cash flow in the past year.
LWAY had positive earnings in each of the past 5 years.
LWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.79%, LWAY belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
With a decent Return On Equity value of 13.48%, LWAY is doing good in the industry, outperforming 77.91% of the companies in the same industry.
LWAY has a Return On Invested Capital of 9.95%. This is amongst the best in the industry. LWAY outperforms 83.72% 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 28.32%.
| 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
The Profit Margin of LWAY (5.49%) is better than 73.26% of its industry peers.
In the last couple of years the Profit Margin of LWAY has grown nicely.
The Operating Margin of LWAY (6.36%) is better than 65.12% of its industry peers.
LWAY's Operating Margin has improved in the last couple of years.
LWAY has a Gross Margin of 26.01%. This is in the better half of the industry: LWAY outperforms 62.79% 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
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 15.16 indicates that LWAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LWAY (15.16) is better than 97.67% 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 | 15.16 |
ROIC/WACC1.14
WACC8.74%
2.3 Liquidity
A Current Ratio of 3.03 indicates that LWAY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.03, LWAY belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
A Quick Ratio of 2.40 indicates that LWAY has no problem at all paying its short term obligations.
LWAY's Quick ratio of 2.40 is amongst the best of the industry. LWAY outperforms 89.53% of its industry peers.
| 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 -47.78%.
Measured over the past years, LWAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.84% on average per year.
LWAY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.18%.
The Revenue has been growing by 14.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-47.78%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%12%
Revenue 1Y (TTM)9.18%
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.
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
LWAY is valuated quite expensively with a Price/Earnings ratio of 51.04.
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 26.11.
With a Price/Forward Earnings ratio of 19.12, LWAY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LWAY is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, LWAY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.04 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LWAY is valued a bit more expensive than 60.47% of the companies in the same industry.
LWAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 277.64 | ||
| EV/EBITDA | 21.61 |
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.
LWAY's earnings are expected to grow with 45.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.62
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 |
23.99
-0.24 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners22.35%
Inst Owner Change0.36%
Ins Owners15.59%
Ins Owner Change-3.38%
Market Cap365.37M
Revenue(TTM)193.02M
Net Income(TTM)10.61M
Analysts82.86
Price Target33.66 (40.31%)
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)16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)20.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.04 | ||
| Fwd PE | 19.12 | ||
| P/S | 1.89 | ||
| P/FCF | 277.64 | ||
| P/OCF | 42.32 | ||
| P/B | 4.64 | ||
| P/tB | 6 | ||
| EV/EBITDA | 21.61 |
EPS(TTM)0.47
EY1.96%
EPS(NY)1.25
Fwd EY5.23%
FCF(TTM)0.09
FCFY0.36%
OCF(TTM)0.57
OCFY2.36%
SpS12.67
BVpS5.17
TBVpS4
PEG (NY)0.61
PEG (5Y)0.62
Graham Number7.39
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 | 15.16 |
F-Score4
WACC8.74%
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)-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)9.18%
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-37.85%
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 6 / 10 to LWAY.
What is the valuation status of LIFEWAY FOODS INC (LWAY) stock?
ChartMill assigns a valuation rating of 4 / 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 51.04 and the Price/Book (PB) ratio is 4.64.
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.