This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!
Lifeway Foods Inc
LWAY : NASDAQ : Consumer Goods
$18.12 0.06 | 0.33%
Today's Range: 18.05 - 18.44
Avg. Daily Volume: 18,400
12/17/14 - 4:00 PM ET

Financial Analysis


LIFEWAY FOODS INC's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. LIFEWAY FOODS INC has strong liquidity. Currently, the Quick Ratio is 1.96 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.22% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)30.1123.79
EBITDA ($mil)2.982.79
EBIT ($mil)1.792.2
Net Income ($mil)1.031.69


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)5.853.86
Total Assets ($mil)65.5364.47
Total Debt ($mil)9.2210.09
Equity ($mil)45.6843.41


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin27.9430.59
EBITDA Margin9.911.73
Operating Margin5.959.26
Sales Turnover1.761.43
Return on Assets3.5210.13
Return on Equity5.0515.05
Debt Q3 FY14 Q3 FY13
Current Ratio2.762.75
Debt/Capital0.170.19
Interest Expense0.060.06
Interest Coverage28.8936.73


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)16.3516.35
Div / share0.00.0
EPS0.060.1
Book value / share2.792.66
Institutional Own % n/a n/a
Avg Daily Volume17204.015436.0

Valuation


BUY. LIFEWAY FOODS INC's P/E ratio indicates a significant premium compared to an average of 24.54 for the Food Products industry and a significant premium compared to the S&P 500 average of 19.74. Conducting a second comparison, its price-to-book ratio of 6.98 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 5.80. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, LIFEWAY FOODS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LWAY 130.00 Peers 24.54   LWAY 54.06 Peers 15.03

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LWAY is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LWAY is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LWAY 40.63 Peers 20.91   LWAY NM Peers 4.27

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

LWAY is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LWAY's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LWAY 6.98 Peers 5.80   LWAY -61.54 Peers 10.77

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LWAY is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, LWAY is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LWAY 2.77 Peers 1.76   LWAY 25.02 Peers 2.89

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LWAY is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

LWAY has a sales growth rate that significantly exceeds its peers.

 

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs