Lifeway Foods (LWAY) AI Stock Analysis

• Market Cap: $404.87M
• Dividend Yield: N/A
• Average Volume (3M): 135.19K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.65
• Revenue Growth: 9.19%
• EPS Growth: -23.91%
• Country: US
• Employees: 291
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.28
• Shares Outstanding: 15,226,520
• 10 Day Avg. Volume: 252,440
• 30 Day Avg. Volume: 135,195
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 18.21
• 1Y Price Target: $33.00
• Price Target Upside: 24.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $29.00 ▲(9.06% Upside)

Lifeway Foods' stock score is primarily influenced by strong financial performance, particularly in revenue growth and balance sheet strength. However, concerns about cash flow management and a high P/E ratio weigh on the overall score. Technical indicators suggest potential for a short-term reversal, but current momentum is bearish.

Positive Factors

Revenue Growth

The 20% sales increase in Q3 indicates strong demand for Lifeway's products, reflecting effective market strategies and product appeal, which supports long-term revenue growth.

Balance Sheet Strength

A low debt-to-equity ratio signifies minimal leverage, reducing financial risk and providing flexibility for future investments and growth initiatives.

Market Position

Record sales in consecutive quarters demonstrate Lifeway's strong market position and effective execution of its strategic plan, enhancing its competitive edge.

Negative Factors

Cash Flow Management

The inability to convert income into cash highlights challenges in cash flow management, which could affect the company's ability to fund operations and growth.

Profit Margin Fluctuations

Declining net profit margins suggest challenges in controlling costs, which could impact profitability and shareholder returns if not addressed.

Earnings Volatility

Negative EPS growth indicates earnings volatility, which may undermine investor confidence and affect the company's ability to sustain long-term growth.

Lifeway Foods Business Overview & Revenue Model

Company Description

Lifeway 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.

How the Company Makes Money

Lifeway Foods generates revenue primarily through the sale of its probiotic dairy products, with kefir being the flagship item in its product lineup. The company distributes its products through various channels, including grocery stores, health food retailers, and online platforms, which enables it to reach a broad consumer base. Key revenue streams include direct retail sales as well as partnerships with major grocery chains and distributors, which help expand the brand's market presence. Additionally, Lifeway Foods engages in collaborations with health and wellness influencers and participates in trade shows to enhance brand visibility and drive sales. The company's focus on innovation and product development, such as introducing new flavors and dairy alternatives, also contributes to revenue growth by attracting new customers and retaining existing ones.

Lifeway Foods Financial Statement Overview

Summary

Lifeway Foods shows strong revenue growth and a robust balance sheet with minimal debt. However, cash flow management is a concern, with zero free cash flow in 2024 and challenges in converting income into cash.

Income Statement

Lifeway Foods has demonstrated strong revenue growth, increasing from $93.66 million in 2019 to $186.82 million in 2024. The company has maintained a healthy gross profit margin, reaching 26% in 2024, indicating efficient cost management. However, the net profit margin has seen some fluctuations, dropping to 4.8% in 2024 from 7.1% in 2023, which suggests potential challenges in controlling non-operating expenses. The EBIT and EBITDA margins also reflect strong operational performance, with 7.4% each in 2024.

Balance Sheet

Lifeway Foods maintains a robust balance sheet, evidenced by a low debt-to-equity ratio of 0.001 in 2024, indicating minimal leverage and financial risk. The equity ratio stands at 79.4%, demonstrating significant equity financing. Return on equity has remained solid at 12.5% in 2024, although it has declined from 18.8% in 2023, suggesting some pressure on profitability relative to shareholders' equity.

Cash Flow

Lifeway Foods' cash flow performance shows areas for improvement. The operating cash flow to net income ratio was 0 in 2024, down from 1.49 in 2023, indicating challenges in converting income into cash. Free cash flow was also zero in 2024, impacted by capital expenditures and investing activities. The company needs to focus on enhancing cash generation and managing capital expenditures effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.02M	186.82M	160.12M	141.57M	119.06M	102.03M
Gross Profit	50.20M	48.57M	42.44M	26.79M	28.71M	26.93M
EBITDA	19.68M	17.46M	20.20M	5.08M	8.61M	8.19M
Net Income	10.61M	9.03M	11.37M	924.00K	3.31M	3.23M
Balance Sheet
Total Assets	98.27M	90.55M	81.65M	69.00M	70.87M	60.07M
Cash, Cash Equivalents and Short-Term Investments	21.22M	16.73M	13.20M	4.44M	9.23M	7.93M
Total Debt	220.00K	117.00K	2.92M	6.68M	7.46M	3.11M
Total Liabilities	19.57M	18.64M	21.22M	21.43M	21.74M	13.21M
Stockholders Equity	78.70M	71.91M	60.44M	47.57M	49.13M	46.85M
Cash Flow
Free Cash Flow	1.32M	6.26M	12.59M	538.00K	3.64M	4.49M
Operating Cash Flow	8.63M	12.96M	16.94M	3.99M	5.56M	6.38M
Investing Cash Flow	-1.98M	-6.68M	-4.41M	-4.03M	-7.14M	-1.89M
Financing Cash Flow	-65.00K	-2.75M	-3.78M	-4.75M	2.88M	-405.00K

Lifeway Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWAY, the sentiment is Negative. The current price of 26.59 is below the 20-day moving average (MA) of 30.75, below the 50-day MA of 28.79, and above the 200-day MA of 24.68, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LWAY.

Lifeway Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	293.10M	22.28	8.95%	―	4.33%	-6.33%
MAMA	75 Outperform	443.46M	95.72	15.29%	―	19.34%	-12.64%
LWAY	64 Neutral	$404.87M	38.33	14.46%	―	9.19%	-23.91%
STKL	60 Neutral	720.94M	-102.01	-11.71%	―	10.90%	96.02%
HAIN	47 Neutral	148.98M	-0.28	-111.75%	―	-10.17%	-609.02%
LSF	42 Neutral	66.76M	-59.96	-13.79%	―	22.79%	74.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Lifeway Foods Corporate Events

Lifeway Foods Reports 20% Sales Increase in Q3

On September 2, 2025, Lifeway Foods announced estimated unaudited net sales of $39.1 million for the first two months of the third quarter, marking a 20% increase from the previous year. This growth highlights the company’s strong market position and increasing consumer demand for its kefir and high-protein cheese products, reinforcing its leadership in the probiotic nutrition sector.

The most recent analyst rating on (LWAY) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Lifeway Foods Reports Strong Q3 Start with 20% Growth

Lifeway Foods reported record financial results for the second quarter of 2025, with net sales reaching $53.9 million, marking an 18% increase on a comparable basis. The company also announced a strong start to the third quarter with estimated net sales of $26.4 million through August 11, 2025, reflecting a 20% year-over-year growth. This performance underscores Lifeway’s leadership in the kefir category and its ability to capitalize on consumer trends towards wellness and probiotic foods. The company was recognized as Processor of the Year by Dairy Foods magazine, highlighting its innovation and impact in the dairy industry.

The most recent analyst rating on (LWAY) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Lifeway Foods Gains ISS Support Against Dissidents

On July 29, 2025, Lifeway Foods announced that Institutional Shareholder Services Inc. (ISS) recommended shareholders not support the dissident-led consent solicitation. ISS found the dissident group’s case for change unconvincing, citing Lifeway’s positive financial performance and lack of a clear plan from the dissidents. The recommendation supports Lifeway’s management, who believe the solicitation is disruptive and not in shareholders’ best interests.

The most recent analyst rating on (LWAY) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.