LIFEWAY FOODS INC (LWAY) Stock Fundamental Analysis
NASDAQ:LWAY - Nasdaq - US5319141090 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LWAY. LWAY was compared to 89 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make LWAY a good candidate 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.
Each year in the past 5 years LWAY has been profitable.
Each year in the past 5 years LWAY had a positive operating cash flow.
1.2 Ratios
LWAY has a Return On Assets of 9.97%. This is amongst the best in the industry. LWAY outperforms 91.01% of its industry peers.
With a decent Return On Equity value of 12.55%, LWAY is doing good in the industry, outperforming 68.54% of the companies in the same industry.
LWAY has a better Return On Invested Capital (12.26%) than 89.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LWAY is in line with the industry average of 8.83%.
The 3 year average ROIC (10.79%) for LWAY is below the current ROIC(12.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 12.55% | ||
| ROIC | 12.26% |
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 Profit Margin of 4.83%. This is in the better half of the industry: LWAY outperforms 67.42% of its industry peers.
LWAY's Profit Margin has improved in the last couple of years.
LWAY has a Operating Margin of 7.41%. This is in the better half of the industry: LWAY outperforms 68.54% of its industry peers.
In the last couple of years the Operating Margin of LWAY has grown nicely.
LWAY's Gross Margin of 26.00% is fine compared to the rest of the industry. LWAY outperforms 62.92% of its industry peers.
In the last couple of years the Gross Margin of LWAY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.41% | ||
| PM (TTM) | 4.83% | ||
| GM | 26% |
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
LWAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LWAY has more shares outstanding than it did 1 year ago.
LWAY has less shares outstanding than it did 5 years ago.
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 15.07 indicates that LWAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LWAY (15.07) is better 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 | 15.07 |
ROIC/WACC1.35
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.81 indicates that LWAY has no problem at all paying its short term obligations.
LWAY has a Current ratio of 2.81. This is in the better half of the industry: LWAY outperforms 79.78% of its industry peers.
A Quick Ratio of 2.25 indicates that LWAY has no problem at all paying its short term obligations.
The Quick ratio of LWAY (2.25) is better than 85.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The earnings per share for LWAY have decreased strongly by -23.26% in the last year.
LWAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.84% yearly.
Looking at the last year, LWAY shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
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)-23.26%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%43.75%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
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 50.49% on average per year.
Based on estimates for the next years, LWAY will show a quite strong growth in Revenue. The Revenue will grow by 11.12% on average per year.
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.03%
Revenue Next 2Y11.12%
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 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
LWAY is valuated quite expensively with a Price/Earnings ratio of 33.59.
LWAY's Price/Earnings is on the same level as the industry average.
LWAY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.85.
A Price/Forward Earnings ratio of 16.59 indicates a correct valuation of LWAY.
66.29% of the companies in the same industry are more expensive than LWAY, based on the Price/Forward Earnings ratio.
LWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LWAY.
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 | 53.79 | ||
| EV/EBITDA | 18.8 |
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 excellent 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 50.49% in the coming years.
PEG (NY)0.43
PEG (5Y)0.41
EPS Next 2Y50.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LWAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LWAY (5/14/2025, 8:00:00 PM)
22.17
-0.25 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners23.38%
Inst Owner Change0.91%
Ins Owners15.97%
Ins Owner Change1.32%
Market Cap336.98M
Analysts82.86
Price Target28.56 (28.82%)
Short Float %4.03%
Short Ratio3.87
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)-67.84%
Min EPS beat(2)-104.67%
Max EPS beat(2)-31.01%
EPS beat(4)1
Avg EPS beat(4)-36.94%
Min EPS beat(4)-104.67%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)16.4%
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)-6.65%
Min Revenue beat(2)-9.16%
Max Revenue beat(2)-4.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-9.16%
Max Revenue beat(4)5.92%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
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)0%
PT rev (3m)5.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 16.59 | ||
| P/S | 1.8 | ||
| P/FCF | 53.79 | ||
| P/OCF | 26 | ||
| P/B | 4.69 | ||
| P/tB | 6.26 | ||
| EV/EBITDA | 18.8 |
EPS(TTM)0.66
EY2.98%
EPS(NY)1.34
Fwd EY6.03%
FCF(TTM)0.41
FCFY1.86%
OCF(TTM)0.85
OCFY3.85%
SpS12.29
BVpS4.73
TBVpS3.54
PEG (NY)0.43
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 12.55% | ||
| ROCE | 18.46% | ||
| ROIC | 12.26% | ||
| ROICexc | 15.78% | ||
| ROICexgc | 22.86% | ||
| OM | 7.41% | ||
| PM (TTM) | 4.83% | ||
| GM | 26% | ||
| FCFM | 3.35% |
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-Score6
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 197.79% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 141.35 | ||
| Cash Conversion | 75.19% | ||
| Profit Quality | 69.42% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 15.07 |
F-Score6
WACC9.07%
ROIC/WACC1.35
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)-23.26%
EPS 3Y39.44%
EPS 5Y81.84%
EPS Q2Q%43.75%
EPS Next Y78.07%
EPS Next 2Y50.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.67%
Revenue growth 3Y16.19%
Revenue growth 5Y14.8%
Sales Q2Q%3.26%
Revenue Next Year12.03%
Revenue Next 2Y11.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.53%
EBIT growth 3Y32.17%
EBIT growth 5YN/A
EBIT Next Year60.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50.24%
FCF growth 3Y19.84%
FCF growth 5Y18.96%
OCF growth 1Y-23.49%
OCF growth 3Y32.6%
OCF growth 5Y27.75%