Lifeway Foods, Inc.
Lifeway Foods, Inc. Fundamental Analysis
Lifeway Foods, Inc. (LWAY) shows moderate financial fundamentals with a PE ratio of 30.09, profit margin of 5.47%, and ROE of 14.51%. The company generates $0.2B in annual revenue with strong year-over-year growth of 16.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LWAY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLWAY demonstrates superior asset utilization.
Valuation Score
WeakLWAY trades at a premium to fair value.
Growth Score
ModerateLWAY shows steady but slowing expansion.
Financial Health Score
ExcellentLWAY maintains a strong and stable balance sheet.
Profitability Score
WeakLWAY struggles to sustain strong margins.
Key Financial Metrics
Is LWAY Expensive or Cheap?
P/E Ratio
LWAY trades at 30.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LWAY's PEG of 7.12 indicates potential overvaluation.
Price to Book
The market values Lifeway Foods, Inc. at 4.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.35 times EBITDA. This signals the market has high growth expectations.
How Well Does LWAY Make Money?
Net Profit Margin
For every $100 in sales, Lifeway Foods, Inc. keeps $5.47 as profit after all expenses.
Operating Margin
Core operations generate 6.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.51 in profit for every $100 of shareholder equity.
ROA
Lifeway Foods, Inc. generates $10.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lifeway Foods, Inc. generates limited operating cash flow of $8.10M, signaling weaker underlying cash strength.
Free Cash Flow
Lifeway Foods, Inc. generates weak or negative free cash flow of $-2.82M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.19 in free cash annually.
FCF Yield
LWAY converts -0.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How LWAY Stacks Against Its Sector Peers
| Metric | LWAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.09 | 23.25 | Worse (Expensive) |
| ROE | 14.51% | 1240.00% | Weak |
| Net Margin | 5.47% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.30 | 2.54 | Strong Liquidity |
| ROA | 10.19% | -203388.00% (disorted) | Strong |
LWAY outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lifeway Foods, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
112.68%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
2024.34%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
262.67%
Industry Style: Defensive, Dividend, Low Volatility
High Growth