Lifeway Foods Inc.

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LWAY : NASDAQ : Consumer Non-Durables
$7.05 -0.17 | -2.35%
Today's Range: 6.89 - 7.23
Avg. Daily Volume: 23200.0
02/16/18 - 4:00 PM ET

Financial Analysis


LIFEWAY FOODS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. LIFEWAY FOODS INC has average liquidity. Currently, the Quick Ratio is 1.38 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.96% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)28.7929.99
EBITDA ($mil)1.30.9
EBIT ($mil)0.510.19
Net Income ($mil)0.24-0.06


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)7.269.16
Total Assets ($mil)66.7668.21
Total Debt ($mil)6.497.33
Equity ($mil)48.6347.69


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin29.3728.38
EBITDA Margin4.512.99
Operating Margin1.790.63
Sales Turnover1.841.81
Return on Assets2.824.87
Return on Equity3.876.97
Debt Q3 FY17 Q3 FY16
Current Ratio2.062.56
Debt/Capital0.120.13
Interest Expense0.060.06
Interest Coverage8.293.38


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)16.0416.14
Div / share0.00.0
EPS0.020.0
Book value / share3.032.95
Institutional Own % n/a n/a
Avg Daily Volume23741.012189.0

Valuation


HOLD. LIFEWAY FOODS INC's P/E ratio indicates a significant premium compared to an average of 23.60 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.38 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 4.38. The price-to-sales ratio is well below both the S&P 500 average and 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 60.17 Peers 23.60   LWAY 24.26 Peers 21.51

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 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 36.10 Peers 18.89   LWAY NM Peers 1.11

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 2.38 Peers 4.38   LWAY -42.86 Peers 53.25

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.

 

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 0.94 Peers 2.07   LWAY -0.34 Peers 6.74

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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