Lifeway Foods Inc

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LWAY : NASDAQ : Consumer Goods
$11.48 | %
Today's Range: 10.51 - 11.6299
Avg. Daily Volume: 42800.0
12/02/16 - 4:00 PM ET

Financial Analysis


LIFEWAY FOODS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. LIFEWAY FOODS INC has strong liquidity. Currently, the Quick Ratio is 1.69 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.89% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)29.9929.6
EBITDA ($mil)0.92.85
EBIT ($mil)0.192.05
Net Income ($mil)-0.060.89


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)9.168.06
Total Assets ($mil)68.2165.07
Total Debt ($mil)7.338.17
Equity ($mil)47.6946.35


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin28.3832.26
EBITDA Margin2.999.61
Operating Margin0.636.94
Sales Turnover1.811.83
Return on Assets4.872.49
Return on Equity6.973.49
Debt Q3 FY16 Q3 FY15
Current Ratio2.562.77
Debt/Capital0.130.15
Interest Expense0.060.06
Interest Coverage3.3836.66


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)16.1416.35
Div / share0.00.0
EPS0.00.05
Book value / share2.952.84
Institutional Own % n/a n/a
Avg Daily Volume36613.012429.0

Valuation


HOLD. LIFEWAY FOODS INC's P/E ratio indicates a significant premium compared to an average of 34.62 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.36. To use another comparison, its price-to-book ratio of 4.10 indicates a premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 4.77. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LWAY 57.67 Peers 34.62   LWAY 28.30 Peers 17.78

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 27.21 Peers 21.99   LWAY 0.27 Peers 6.49

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LWAY 4.10 Peers 4.77   LWAY 110.00 Peers 202.00

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

LWAY is trading at a discount 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 1.59 Peers 2.22   LWAY 3.39 Peers 25.50

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LWAY significantly trails its peers on the basis of sales growth

 

 

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