Lifeway Foods (LWAY) AI Stock Analysis

• Market Cap: $379.47M
• Dividend Yield: N/A
• Average Volume (3M): 39.82K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.42
• Revenue Growth: 12.84%
• EPS Growth: -22.88%
• Country: US
• Employees: 291
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 0.23
• Shares Outstanding: 15,203,241
• 10 Day Avg. Volume: 26,579
• 30 Day Avg. Volume: 39,822
• PEG Ratio: 3.19
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 78.11
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 7.45
• Enterprise Value/Ebitda: 4.61
• 1Y Price Target: $28.00
• Price Target Upside: 12.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $27.00 ▲(8.17%Upside)

Lifeway Foods scores well due to strong financial performance and positive earnings call highlights, such as sales growth and strategic investments. Nevertheless, challenges in cash flow management and an elevated P/E ratio weigh on the overall score.

Positive Factors

Market Expansion

The company is expanding its SKUs into the high-growth RTD market with new on-trend flavors which we believe will introduce the brand to new customers.

Product Popularity

Lifeway's flagship kefir product saw revenue growth of 14% in Q4’24 and 20% in FY24, demonstrating the brand's strength and consumer interest in functional foods like probiotics.

Revenue Growth

Double-digit revenue growth is expected to continue on a full-year basis, supported by tapering milk prices and modest GM expansion.

Negative Factors

Financial Impact

GAAP earnings were skewed by year-end bonuses and expenses associated with the unsolicited takeover attempt by Danone.

Operational Costs

Elevated SG&A costs in FY24 were associated with legal/advisory fees due to the unsolicited Danone acquisition and other shareholder actions.

Revenue Miss

Q3’24 revenue growth of 13% missed our 18% estimate and moved down $3M sequentially as Q2’24 results appear to have uniquely benefited from club channel distribution, while GMs were compressed on elevated milk prices.

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 kefir and other fermented dairy products. The company's key revenue streams include direct sales to retailers, such as supermarkets and health food stores, and distribution partnerships that help expand its market reach. Lifeway also leverages e-commerce platforms to sell its products directly to consumers. Additionally, the company benefits from strategic partnerships with health and wellness brands to enhance its product offerings and market presence. Seasonal promotions and new product launches further contribute to Lifeway's earnings by attracting new customers and encouraging repeat purchases from existing ones.

Lifeway Foods Financial Statement Overview

Summary

Lifeway Foods demonstrates strong revenue growth and a robust balance sheet with minimal debt. However, cash flow management presents challenges, with zero free cash flow in 2024, indicating a need for better cash generation strategies.

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	188.28M	186.82M	160.12M	141.57M	119.06M	102.03M
Gross Profit	47.94M	48.57M	42.44M	26.79M	28.71M	26.93M
EBITDA	14.68M	17.46M	20.20M	5.08M	8.61M	8.19M
Net Income	10.14M	9.03M	11.37M	924.00K	3.31M	3.23M
Balance Sheet
Total Assets	93.67M	90.55M	81.65M	69.00M	70.87M	60.07M
Cash, Cash Equivalents and Short-Term Investments	19.45M	16.73M	13.20M	4.44M	9.23M	7.93M
Total Debt	68.00K	117.00K	2.92M	6.68M	7.46M	3.11M
Total Liabilities	19.50M	18.64M	21.22M	21.43M	21.74M	13.21M
Stockholders Equity	74.17M	71.91M	60.44M	47.57M	49.13M	46.85M
Cash Flow
Free Cash Flow	4.82M	6.26M	12.59M	538.00K	3.64M	4.49M
Operating Cash Flow	11.27M	12.96M	16.94M	3.99M	5.56M	6.38M
Investing Cash Flow	-1.28M	-6.68M	-4.41M	-4.03M	-7.14M	-1.89M
Financing Cash Flow	-2.56M	-2.75M	-3.78M	-4.75M	2.88M	-405.00K

Lifeway Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWAY, the sentiment is Positive. The current price of 24.96 is above the 20-day moving average (MA) of 24.85, above the 50-day MA of 24.08, and above the 200-day MA of 23.82, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LWAY.

Lifeway Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAMA	78 Outperform	$346.02M	82.73	18.79%	―	17.04%	-23.81%
NATR	77 Outperform	$276.39M	27.97	6.42%	―	2.00%	-37.09%
LWAY	71 Outperform	$379.47M	37.59	14.73%	―	12.84%	-22.88%
Sector *	65 Neutral	$27.20B	15.36	-4.27%	3.20%	1.01%	3.58%
STKL	61 Neutral	$774.60M	―	-5.95%	―	2.44%	91.41%
LSF	49 Neutral	$76.00M	―	-7.38%	―	25.04%	87.51%
HAIN	48 Neutral	$166.07M	―	-31.83%	―	-8.50%	-186.18%

Lifeway Foods Corporate Events

Lifeway Foods Reports 66% Sales Increase in July

On July 15, 2025, Lifeway Foods announced a significant achievement of exceeding $5.5 million in gross sales for the week ending July 13, 2025, marking a 66% increase from the previous year. This milestone highlights the strong demand for Lifeway’s kefir and farmer cheese products, potentially strengthening its market position. The company plans to release its second-quarter financial results on August 12, 2025, which may provide further insights into its operational performance and future outlook.

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 Urges Shareholders Against Consent Solicitation

On July 3, 2025, Lifeway Foods issued a press release urging shareholders to disregard a consent solicitation statement filed by Edward and Ludmila Smolyansky, which the company claims violates Illinois law and its organizational documents. Lifeway emphasized its commitment to maximizing shareholder value, highlighting strong financial performance and growth over recent years, and aims to continue this momentum.

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 Finalizes Separation Agreement with Feldman

On June 16, 2025, Lifeway Foods, Inc. finalized a Separation Agreement with Amy Feldman, following her termination reported earlier in March 2025. The agreement includes a lump sum payment of $555,313.13 to Feldman, along with the vesting of restricted and performance stock units. Feldman has waived certain claims and agreed not to seek further compensation, marking the full settlement of her executive employment agreement with the company.

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 Reports Strong Sales Growth and Expansion

On June 4, 2025, Lifeway Foods announced a significant achievement of surpassing $37.6 million in net sales from April 1, 2025, to May 31, 2025, marking a 10.7% increase from the previous year. The company expects second-quarter net sales to be between $52 million and $56 million. Lifeway Foods also revealed an expanded distribution of its top-selling kefir and farmer cheese products across major U.S. retailers, including Amazon Fresh, BJ’s Wholesale Club, CVS, and others. This expansion aligns with the rising consumer interest in probiotic and fermented foods, enhancing Lifeway’s market presence and accessibility of its gut-health-focused products.

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 Achieves Record Weekly Sales Growth

On April 29, 2025, Lifeway Foods announced a significant achievement of surpassing $5 million in gross sales for the week ending April 27, 2025, marking a 35% increase from the previous year. This milestone highlights the growing demand for Lifeway’s kefir and farmer cheese products, potentially strengthening the company’s market position and signaling positive implications for stakeholders ahead of their first quarter 2025 financial results announcement on May 13, 2025.