Lifeway Foods Inc

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LWAY : NASDAQ : Consumer Goods
$11.20 | %
Today's Range: 11.07 - 11.28
Avg. Daily Volume: 12,000
08/26/16 - 4:00 PM ET

Financial Analysis


LIFEWAY FOODS INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. LIFEWAY FOODS INC has strong liquidity. Currently, the Quick Ratio is 1.77 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 4.80% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)31.1329.82
EBITDA ($mil)3.860.83
EBIT ($mil)3.050.05
Net Income ($mil)2.110.1


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)7.839.16
Total Assets ($mil)66.5766.15
Total Debt ($mil)7.548.38
Equity ($mil)47.745.51


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin34.7725.55
EBITDA Margin12.392.78
Operating Margin9.790.16
Sales Turnover1.851.81
Return on Assets6.432.63
Return on Equity8.973.82
Debt Q2 FY16 Q2 FY15
Current Ratio2.772.4
Debt/Capital0.140.16
Interest Expense0.050.06
Interest Coverage64.870.84


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)16.1416.35
Div / share0.00.0
EPS0.130.01
Book value / share2.962.78
Institutional Own % n/a n/a
Avg Daily Volume12009.010356.0

Valuation


HOLD. LIFEWAY FOODS INC's P/E ratio indicates a significant premium compared to an average of 26.50 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 3.73 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 6.69. 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 42.42 Peers 26.50   LWAY 45.26 Peers 17.74

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 31.07 Peers 21.96   LWAY 0.33 Peers 1.21

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 3.73 Peers 6.69   LWAY 136.36 Peers 81.38

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 significant discount to its peers.

 

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

LWAY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LWAY 1.45 Peers 2.01   LWAY 2.62 Peers 0.02

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.

 

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.

 

 

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