Lifeway Foods, Inc. (LWAY) 10-Year Financial Performance & Capital Metrics

LWAY • • Industrial / General

Consumer DefensivePackaged FoodsCoffee & BeveragesSpecialty Beverage Products

AboutLifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types, including low fat, non-fat, whole milk, protein, and BioKefir. The company also offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; cupped kefir and Icelandic Skyr, a line of strained kefir and yogurt products; and frozen kefir in soft serve and pint-size containers. It sells its products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. The company was founded in 1986 and is based in Morton Grove, Illinois.Show more

Revenue $187M +16.7%
EBITDA $17M -14.5%
Net Income $9M -20.6%
EPS (Diluted) 0.59 -21.3%
Gross Margin 26% -1.9%
EBITDA Margin 9.23% -26.7%
Operating Margin 7.41% -30.1%
Net Margin 4.83% -31.9%
ROE 13.64% -35.2%
ROIC 19.7% -22.7%
Debt/Equity 0.00 -96.6%
Interest Coverage 131.92 +198.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 81.9%
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 14.8%
✓Efficient asset utilization: 2.1x turnover

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.62%

5Y14.81%

3Y16.2%

TTM12.14%

Profit (Net Income) CAGR

10Y12.26%

5Y81.92%

3Y39.69%

TTM-15.17%

EPS CAGR

10Y13.25%

5Y83.06%

3Y41.11%

TTM-15.03%

ROCE

10Y Avg7.95%

5Y Avg14.31%

3Y Avg17.19%

Latest19.64%

Peer Comparison

Specialty Beverage Products

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
LWAYLifeway Foods, Inc.	337.16M	22.14	37.53	16.67%	5.47%	13.48%	1.86%	0.00
LSFLaird Superfood, Inc.	30.35M	2.84	-15.78	26.5%	-4.95%	-14.77%	2.77%	0.02

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	118.59M	123.88M	118.89M	103.35M	93.66M	102.03M	119.06M	141.57M	160.12M	186.82M
Revenue Growth %	-0%	0.04%	-0.04%	-0.13%	-0.09%	0.09%	0.17%	0.19%	0.13%	0.17%
Cost of Goods Sold+	86.99M	88.85M	88.2M	77.49M	71.51M	75.09M	90.36M	114.78M	117.68M	138.25M
COGS % of Revenue	0.73%	0.72%	0.74%	0.75%	0.76%	0.74%	0.76%	0.81%	0.73%	0.74%
Gross Profit+	31.6M	35.03M	30.7M	25.86M	22.15M	26.93M	28.71M	26.79M	42.44M	48.57M
Gross Margin %	0.27%	0.28%	0.26%	0.25%	0.24%	0.26%	0.24%	0.19%	0.27%	0.26%
Gross Profit Growth %	0.09%	0.11%	-0.12%	-0.16%	-0.14%	0.22%	0.07%	-0.07%	0.58%	0.14%
Operating Expenses+	27.2M	28.95M	31.22M	27.72M	24.08M	22.01M	22.83M	24.44M	25.45M	34.72M
OpEx % of Revenue	0.23%	0.23%	0.26%	0.27%	0.26%	0.22%	0.19%	0.17%	0.16%	0.19%
Selling, General & Admin	26.48M	28.25M	30.55M	27.09M	23.89M	21.86M	22.71M	23.9M	24.91M	34.18M
SG&A % of Revenue	0.22%	0.23%	0.26%	0.26%	0.26%	0.21%	0.19%	0.17%	0.16%	0.18%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	7K	71K	2K	16K	192K	152K	122K	540K	540K	540K
Operating Income+	4.4M	6.08M	-526K	-3.11M	-1.93M	4.92M	5.88M	2.35M	17M	13.85M
Operating Margin %	0.04%	0.05%	-0%	-0.03%	-0.02%	0.05%	0.05%	0.02%	0.11%	0.07%
Operating Income Growth %	-0%	0.38%	-1.09%	-4.91%	0.38%	3.55%	0.19%	-0.6%	6.23%	-0.18%
EBITDA+	7.53M	9.11M	2.59M	367K	1.41M	8.16M	8.75M	5.32M	20.16M	17.24M
EBITDA Margin %	0.06%	0.07%	0.02%	0%	0.02%	0.08%	0.07%	0.04%	0.13%	0.09%
EBITDA Growth %	-0.02%	0.21%	-0.72%	-0.86%	2.83%	4.81%	0.07%	-0.39%	2.79%	-0.14%
D&A (Non-Cash Add-back)	3.13M	3.02M	3.11M	3.48M	3.34M	3.24M	2.87M	2.97M	3.16M	3.39M
EBIT	4.23M	5.86M	-562K	-3.04M	1.48M	4.95M	5.73M	2.11M	17.03M	14.07M
Net Interest Income+	-124K	-220K	-242K	-271K	-249K	-118K	-116K	-267K	-384K	-105K
Interest Income	112K	0	0	0	0	0	0	0	0	0
Interest Expense	236K	220K	242K	271K	249K	118K	116K	267K	384K	105K
Other Income/Expense	-411K	-448K	-278K	-201K	3.17M	-95K	-264K	-508K	-346K	117K
Pretax Income+	3.99M	5.64M	-804K	-3.31M	1.24M	4.83M	5.62M	1.84M	16.65M	13.97M
Pretax Margin %	0.03%	0.05%	-0.01%	-0.03%	0.01%	0.05%	0.05%	0.01%	0.1%	0.07%
Income Tax+	2.02M	2.16M	-458K	-225K	782K	1.6M	2.31M	917K	5.28M	4.94M
Effective Tax Rate %	0.49%	0.62%	0.43%	0.93%	0.37%	0.67%	0.59%	0.5%	0.68%	0.65%
Net Income+	1.97M	3.48M	-346K	-3.09M	453K	3.23M	3.31M	924K	11.37M	9.03M
Net Margin %	0.02%	0.03%	-0%	-0.03%	0%	0.03%	0.03%	0.01%	0.07%	0.05%
Net Income Growth %	-0.31%	0.76%	-1.1%	-7.92%	1.15%	6.13%	0.02%	-0.72%	11.3%	-0.21%
Net Income (Continuing)	1.97M	3.48M	-346K	-3.09M	453K	3.23M	3.31M	924K	11.37M	9.03M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.12	0.22	-0.02	-0.19	0.03	0.21	0.21	0.06	0.75	0.59
EPS Growth %	-0.29%	0.83%	-1.1%	-7.84%	1.15%	6.32%	0%	-0.72%	11.76%	-0.21%
EPS (Basic)	0.12	0.22	-0.02	-0.19	0.03	0.21	0.21	0.06	0.78	0.61
Diluted Shares Outstanding	16.33M	16.16M	16.11M	16.32M	15.8M	15.77M	15.77M	15.72M	15.1M	15.27M
Basic Shares Outstanding	16.33M	16.16M	16.11M	15.87M	15.75M	15.6M	15.54M	15.4M	14.67M	14.77M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	26.85M	28.2M	24.68M	18.92M	19.2M	24.05M	29.05M	26.98M	38.2M	43.6M
Cash & Short-Term Investments	8.38M	8.81M	4.98M	3M	3.84M	7.93M	9.23M	4.44M	13.2M	16.73M
Cash Only	5.65M	8.81M	4.98M	3M	3.84M	7.93M	9.23M	4.44M	13.2M	16.73M
Short-Term Investments	2.73M	0	0	0	0	0	0	0	0	0
Accounts Receivable	9.93M	9.9M	11.02M	9.02M	7.37M	8.03M	10.27M	11.41M	13.88M	16.05M
Days Sales Outstanding	30.57	29.18	33.84	31.87	28.73	28.74	31.5	29.43	31.63	31.37
Inventory	7.66M	8.04M	7.7M	5.82M	6.39M	6.93M	8.29M	9.63M	9.1M	8.68M
Days Inventory Outstanding	32.16	33.04	31.85	27.4	32.62	33.68	33.47	30.63	28.24	22.91
Other Current Assets	556K	0	0	0	1.6M	1.16M	1.25M	44K	2.02M	2.14M
Total Non-Current Assets+	38.07M	37.67M	39.84M	37.89M	39.35M	38M	42.5M	42.02M	44.45M	46.94M
Property, Plant & Equipment	21.38M	21.83M	24.64M	24.57M	23.01M	21.39M	20.35M	21.08M	22.96M	26.98M
Fixed Asset Turnover	5.55x	5.67x	4.82x	4.21x	4.07x	4.77x	5.85x	6.72x	6.98x	6.92x
Goodwill	10.37M	10.37M	10.37M	9.12M	9.12M	10.3M	11.7M	11.7M	11.7M	11.7M
Intangible Assets	6.04M	5.35M	4.67M	4.04M	3.85M	3.7M	7.98M	7.44M	6.9M	6.36M
Long-Term Investments	-556K	-662K	-840K	-390K	0	0	0	1.8M	6.9M	1.8M
Other Non-Current Assets	282K	125K	150K	150K	1.8M	1.8M	1.8M	0	-5M	100K
Total Assets+	64.92M	65.88M	64.52M	56.81M	58.55M	62.05M	71.55M	69M	82.64M	90.55M
Asset Turnover	1.83x	1.88x	1.84x	1.82x	1.60x	1.64x	1.66x	2.05x	1.94x	2.06x
Asset Growth %	0.02%	0.01%	-0.02%	-0.12%	0.03%	0.06%	0.15%	-0.04%	0.2%	0.1%
Total Current Liabilities+	10.82M	9.38M	13.2M	7.45M	9.52M	8.44M	12.06M	13.04M	16.62M	15.5M
Accounts Payable	8.39M	5.72M	6.85M	4.57M	5.28M	5.59M	6.61M	7.98M	9.98M	10.4M
Days Payables Outstanding	35.22	23.49	28.34	21.53	26.96	27.18	26.72	25.37	30.94	27.46
Short-Term Debt	840K	840K	3.17M	0	285K	179K	1.13M	1.25M	1.25M	0
Deferred Revenue (Current)	1000K	1000K	1000K	0	0	0	0	0	0	0
Other Current Liabilities	679K	1.95M	371K	442K	793K	651K	642K	0	0	868K
Current Ratio	2.48x	3.01x	1.87x	2.54x	2.02x	2.85x	2.41x	2.07x	2.30x	2.81x
Quick Ratio	1.77x	2.15x	1.29x	1.76x	1.34x	2.03x	1.72x	1.33x	1.75x	2.25x
Cash Conversion Cycle	27.51	38.73	37.35	37.74	34.4	35.24	38.25	34.68	28.92	26.82
Total Non-Current Liabilities+	8.84M	8.13M	4.73M	6.95M	5.77M	6.76M	10.35M	8.39M	5.59M	3.13M
Long-Term Debt	7.12M	6.28M	3.11M	6M	2.75M	2.77M	6.25M	5.25M	1.48M	0
Capital Lease Obligations	0	0	0	0	488K	165K	85K	104K	118K	70K
Deferred Tax Liabilities	1.72M	1.85M	840K	390K	2.48M	3.75M	3.87M	0	3.99M	3.06M
Other Non-Current Liabilities	0	0	775K	564K	58K	77K	147K	3.03M	0	0
Total Liabilities	19.66M	17.51M	17.93M	14.4M	15.29M	15.2M	22.42M	21.43M	22.2M	18.64M
Total Debt+	7.96M	7.12M	6.28M	6M	3.52M	3.11M	7.46M	6.68M	2.92M	117K
Net Debt	2.31M	-1.69M	1.3M	3M	-318K	-4.81M	-1.77M	2.23M	-10.27M	-16.61M
Debt / Equity	0.18x	0.15x	0.13x	0.14x	0.08x	0.07x	0.15x	0.14x	0.05x	0.00x
Debt / EBITDA	1.06x	0.78x	2.43x	16.34x	2.50x	0.38x	0.85x	1.26x	0.15x	0.01x
Net Debt / EBITDA	0.31x	-0.19x	0.50x	8.17x	-0.23x	-0.59x	-0.20x	0.42x	-0.51x	-0.96x
Interest Coverage	18.66x	27.66x	-2.17x	-11.48x	-7.76x	41.72x	50.69x	8.80x	44.26x	131.92x
Total Equity+	45.26M	48.36M	46.59M	42.41M	43.25M	46.85M	49.13M	47.57M	60.44M	71.91M
Equity Growth %	-0.01%	0.07%	-0.04%	-0.09%	0.02%	0.08%	0.05%	-0.03%	0.27%	0.19%
Book Value per Share	2.77	2.99	2.89	2.60	2.74	2.97	3.11	3.03	4.00	4.71
Total Shareholders' Equity	45.26M	48.36M	46.59M	42.41M	43.25M	46.85M	49.13M	47.57M	60.44M	71.91M
Common Stock	6.51M	6.51M	6.51M	6.51M	6.51M	6.51M	6.51M	6.51M	6.51M	6.51M
Retained Earnings	46.52M	49.99M	49.65M	46.56M	46.96M	50.2M	53.51M	54.43M	65.8M	74.82M
Treasury Stock	-9.73M	-10.34M	-11.81M	-12.97M	-12.6M	-12.45M	-13.44M	-16.99M	-16.7M	-14.05M
Accumulated OCI	-71K	0	-25.22M	-26.71M	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	6.75M	5.1M	3.81M	2.42M	3.81M	6.38M	5.56M	3.99M	16.94M	12.96M
Operating CF Margin %	0.06%	0.04%	0.03%	0.02%	0.04%	0.06%	0.05%	0.03%	0.11%	0.07%
Operating CF Growth %	0.33%	-0.24%	-0.25%	-0.37%	0.58%	0.68%	-0.13%	-0.28%	3.25%	-0.23%
Net Income	1.97M	3.48M	-346K	-3.09M	453K	3.23M	3.31M	924K	11.37M	9.03M
Depreciation & Amortization	3.13M	3.02M	3.11M	3.48M	3.34M	3.24M	2.87M	2.97M	3.16M	3.39M
Stock-Based Compensation	0	326K	596K	802K	838K	393K	1.14M	1.11M	1.5M	2.45M
Deferred Taxes	-585K	-531K	-352K	-451K	533K	841K	257K	-172K	-28K	61K
Other Non-Cash Items	475K	499K	892K	1.69M	-3.47M	-83K	72K	219K	-26K	25K
Working Capital Changes	1.86M	-1.69M	-94K	-11K	2.12M	-1.24M	-2.09M	-1.06M	969K	-1.98M
Change in Receivables	537K	292K	780K	2.38M	-423K	-655K	-2.24M	-1.18M	-2.42M	-2.18M
Change in Inventory	-1.85M	-579K	-29K	1.32M	-523K	-538K	-1.36M	-1.34M	527K	426K
Change in Payables	1.55M	-2.67M	1.13M	-2.28M	710K	311K	1.02M	1.95M	1.86M	156K
Cash from Investing+	-1.78M	-360K	-5.32M	-2.72M	838K	-1.89M	-7.14M	-4.03M	-4.41M	-6.68M
Capital Expenditures	-2M	-3.24M	-5.34M	-2.82M	-1.18M	-1.9M	-1.92M	-3.45M	-4.35M	-6.7M
CapEx % of Revenue	0.02%	0.03%	0.04%	0.03%	0.01%	0.02%	0.02%	0.02%	0.03%	0.04%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-363K	513K	50K	104K	0	5K	0	0	41K	15K
Cash from Financing+	-2.58M	-1.58M	-2.33M	-1.68M	-3.81M	-405K	2.88M	-4.75M	-3.78M	-2.75M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	0	0	0	0	0	0	-32K	0	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	4.75M	1.87M	-1.53M	-407K	2.63M	4.49M	3.64M	538K	12.59M	6.26M
FCF Margin %	0.04%	0.02%	-0.01%	-0%	0.03%	0.04%	0.03%	0%	0.08%	0.03%
FCF Growth %	2.37%	-0.61%	-1.82%	0.73%	7.47%	0.71%	-0.19%	-0.85%	22.4%	-0.5%
FCF per Share	0.29	0.12	-0.10	-0.02	0.17	0.28	0.23	0.03	0.83	0.41
FCF Conversion (FCF/Net Income)	3.42x	1.47x	-11.01x	-0.78x	8.41x	1.98x	1.68x	4.31x	1.49x	1.44x
Interest Paid	235K	220K	241K	261K	0	99K	102K	247K	415K	98K
Taxes Paid	1.92M	1.42M	2.38M	723K	0	0	2.29M	1.12M	4.79M	5.99M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	4.34%	7.43%	-0.73%	-6.94%	1.06%	7.17%	6.9%	1.91%	21.05%	13.64%
Return on Invested Capital (ROIC)	6.68%	9.69%	-0.83%	-5%	-3.28%	8.69%	9.87%	3.63%	25.5%	19.7%
Gross Margin	26.65%	28.28%	25.82%	25.02%	23.65%	26.4%	24.11%	18.92%	26.51%	26%
Net Margin	1.66%	2.81%	-0.29%	-2.99%	0.48%	3.17%	2.78%	0.65%	7.1%	4.83%
Debt / Equity	0.18x	0.15x	0.13x	0.14x	0.08x	0.07x	0.15x	0.14x	0.05x	0.00x
Interest Coverage	18.66x	27.66x	-2.17x	-11.48x	-7.76x	41.72x	50.69x	8.80x	44.26x	131.92x
FCF Conversion	3.42x	1.47x	-11.01x	-0.78x	8.41x	1.98x	1.68x	4.31x	1.49x	1.44x
Revenue Growth	-0.31%	4.46%	-4.02%	-13.07%	-9.37%	8.93%	16.7%	18.9%	13.11%	16.67%

Frequently Asked Questions

Valuation & Price

Lifeway Foods, Inc. (LWAY) has a price-to-earnings (P/E) ratio of 37.5x. This suggests investors expect higher future growth.

Growth & Financials

Lifeway Foods, Inc. (LWAY) reported $204.1M in revenue for fiscal year 2024. This represents a 192% increase from $70.0M in 2011.

Lifeway Foods, Inc. (LWAY) grew revenue by 16.7% over the past year. This is strong growth.

Yes, Lifeway Foods, Inc. (LWAY) is profitable, generating $11.2M in net income for fiscal year 2024 (4.8% net margin).

Dividend & Returns

Lifeway Foods, Inc. (LWAY) has a return on equity (ROE) of 13.6%. This is reasonable for most industries.

Lifeway Foods, Inc. (LWAY) had negative free cash flow of $2.8M in fiscal year 2024, likely due to heavy capital investments.

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