LWAY

Lifeway Foods

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Defensive

industry

Packaged Foods

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/12/26

Business Summary

Lifeway Foods produces and distributes probiotic-based dairy products, most notably drinkable kefir, targeting health-conscious consumers within the packaged foods space. The company generates cash through branded retail distribution, leveraging shelf space and repeat consumption dynamics typical of staple food products. Its moat is rooted in brand recognition within the kefir niche, formulation expertise, and established retailer relationships that create barriers to smaller entrants. High operating margins and strong ROIC indicate that once distribution is secured, incremental sales translate efficiently into profit and cash flow.

 


Analyze LWAY on TradingView

VALUATION

P/E

26.7

Market Cap ($M USD)

$360

Forward P/E

15.2

PEG

2.2

PRICE TO SALES

1.7

PRICE TO BOOK

4.2

EV / EBITDA

15

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.91

Next Year EPS Growth Estimate

$1.56

Next Year Revenue Growth Estimate

15.20%

Return on Equity (ROE)

16.20%

FREE CASH FLOW

Operating Margin

7.60%

Debt-to-Equity

0

Piotroski F-Score

5

Altman Z-Score

14.8

Return on Invested Capital (ROIC)

17.60%

Current Ratio

2.2

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze LWAY on TradingView

Gainseekers Quantitative Analysis

Summary

At 26.7x earnings with a Forward P/E of 15.2, the market is clearly pricing in an earnings step-up, yet the PEG Forward of 2.2 suggests that growth is not cheap relative to expectations. The balance sheet is exceptionally safe, with an Altman Z-Score of 14.8 and a modest 7.60% Debt/Equity ratio, eliminating solvency risk as a concern. ROIC at 17.60% against a 16.20% operating margin indicates a business that converts capital into profit efficiently, not a speculative turnaround. This is not deep value, but it is a financially stable small-cap compounder trading at a valuation that assumes execution; mispricing, if any, lies in whether the forward earnings inflection materializes.

AI Exposure / Tech Reliance

As a Consumer Defensive company in Packaged Foods, Lifeway operates in a category that is structurally insulated from technological disruption. AI will more likely enhance supply chain efficiency, demand forecasting, and marketing optimization rather than threaten core demand. The defensive nature of food consumption provides resilience, while modern analytics can incrementally expand margins rather than redefine the business model.

The Bull Case

A GARP investor buys this because the capital efficiency is real: 17.60% ROIC and 15.20% ROE in a defensive food business is not common, especially paired with a 16.20% operating margin. The Piotroski F-Score of 5 signals financial stability rather than distress, while the 2.2 current ratio reinforces liquidity strength. With Debt/Equity at just 7.60%, the company has room to lever or reinvest without balance sheet strain. If EPS grows into next year’s estimate of $0.91 and the multiple compresses toward the 15.2 forward level, investors are effectively paying today for a cleaner, more profitable earnings base tomorrow.

The Bear Case

The red flag is valuation relative to growth: a PEG Forward of 2.2 is expensive for a company with Sales Growth Next Year listed at 1.56, implying earnings acceleration must come from margin expansion rather than top-line momentum. A Price/Sales of 1.7 and Price/Book of 4.2 leave limited room for multiple expansion in a low-growth packaged foods category. Institutional Ownership at 35.00% is not particularly strong sponsorship for a Nasdaq-listed name, and a Consensus Rating of 3.90% paired with a Mean Consensus Target Price of 1 raises questions about analyst conviction. With no dividend and a TTM Yield of 0, shareholders rely entirely on execution and multiple stability for returns.

Market Sentiment & Smart Money

Short Interest %

3.90%

Analyst Consensus

1

Average Analyst Price Target

$35.00

Institutional Ownership %

32.90%

1-Year Beta

0.66

Insider Buying % (6 Mo)

64.60%%

Distance to 52-Week High

69.50%

Distance to 52-Week Low

137.30%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.