Lifeway Foods (LWAY) AI Stock Analysis

• Market Cap: $351.33M
• Dividend Yield: N/A
• Average Volume (3M): 100.20K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.71
• Revenue Growth: 12.14%
• EPS Growth: -17.80%
• Country: US
• Employees: 291
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.23
• Shares Outstanding: 15,228,763
• 10 Day Avg. Volume: 137,613
• 30 Day Avg. Volume: 100,196
• PEG Ratio: -1.86
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 58.46
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 19.63
• 1Y Price Target: $34.00
• Price Target Upside: 25.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.06
• Revenue Forecast (FY): $212.06M

• Rating: 69 Neutral
• Price Target: $26.00 ▼(-4.20% Downside)

Lifeway Foods' overall stock score is driven by strong financial performance and positive earnings call highlights, indicating robust growth and strategic expansion. However, bearish technical indicators and a high P/E ratio suggest caution. The company's cash flow challenges and lack of dividend yield also weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth over 24 consecutive quarters indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Product Innovation

Launching new products like MuscleMase aligns with health trends, potentially expanding market share and enhancing competitive positioning in the functional beverage sector.

Manufacturing Expansion

Increasing manufacturing capacity supports future growth and demand, ensuring Lifeway can scale efficiently and maintain its market leadership.

Negative Factors

Cash Flow Challenges

Inability to convert income into cash limits financial flexibility, potentially impacting the company's ability to invest in growth and manage liabilities.

Governance Issues

Governance concerns, such as extending rights plans without shareholder input, can erode trust and lead to conflicts with investors, impacting long-term corporate governance.

Profit Margin Decline

Declining profit margins indicate potential challenges in cost control and pricing power, which could pressure future profitability and financial health.

Lifeway Foods Business Overview & Revenue Model

Company Description

Lifeway Foods, Inc. is a leading manufacturer and distributor of probiotic dairy products, primarily known for its kefir, a fermented milk beverage rich in probiotics. Founded in 1986 and headquartered in Morton Grove, Illinois, the company operates in the food and beverage sector, focusing on health-oriented products that promote gut health and overall wellness. Lifeway's core product offerings include a variety of kefir drinks, cultured milk, cheese, and probiotic-infused snacks, catering to health-conscious consumers looking for nutritious and functional food options.

How the Company Makes Money

Lifeway Foods generates revenue primarily through the sale of its probiotic dairy products across various distribution channels, including grocery stores, health food stores, and online platforms. The company has established key revenue streams through its diverse product portfolio, with kefir being the flagship item that drives sales. Additionally, Lifeway's strategic partnerships with retailers and distributors enhance its market reach and visibility. The company also explores new product innovations and seasonal offerings to capture consumer interest and drive repeat purchases. Marketing efforts focusing on health benefits, along with an increasing consumer trend towards functional foods, further contribute to Lifeway's earnings.

Lifeway Foods Financial Statement Overview

Summary

Lifeway Foods shows strong revenue growth and a solid balance sheet with minimal debt and substantial equity. However, challenges in cash flow management, evidenced by declining cash flow ratios and zero free cash flow in the latest year, are concerning. Efforts to improve cash generation and maintain profitability are crucial.

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	204.07M	186.82M	160.12M	141.57M	119.06M	102.03M
Gross Profit	55.65M	48.57M	42.44M	26.79M	28.71M	26.93M
EBITDA	20.66M	17.46M	20.20M	5.08M	8.61M	8.19M
Net Income	11.16M	9.03M	11.37M	924.00K	3.31M	3.23M
Balance Sheet
Total Assets	109.53M	90.55M	82.64M	69.00M	71.55M	62.05M
Cash, Cash Equivalents and Short-Term Investments	22.99M	16.73M	13.20M	4.44M	9.23M	7.93M
Total Debt	358.00K	117.00K	2.92M	6.68M	7.46M	3.11M
Total Liabilities	26.76M	18.64M	22.20M	21.43M	22.42M	15.20M
Stockholders Equity	82.76M	71.91M	60.44M	47.57M	49.13M	46.85M
Cash Flow
Free Cash Flow	-2.83M	6.26M	12.59M	538.00K	3.64M	4.49M
Operating Cash Flow	8.10M	12.96M	16.94M	3.99M	5.56M	6.38M
Investing Cash Flow	-5.61M	-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: 27.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.14 is above the 20-day moving average (MA) of 23.34, above the 50-day MA of 25.60, and above the 200-day MA of 25.08, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 23.09 is Neutral, 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
MAMA	76 Outperform	$426.05M	91.96	17.44%	―	19.34%	-12.64%
NATR	73 Outperform	$365.48M	25.74	9.52%	―	6.62%	-7.85%
LWAY	69 Neutral	$351.33M	31.82	14.46%	―	12.14%	-17.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	61 Neutral	$375.49M	23.09	3.20%	―	5.88%	-68.62%
WEST	45 Neutral	$374.71M	―	-27.64%	―	28.89%	-13.96%
BRCC	44 Neutral	$328.75M	-9.39	-35.78%	―	-3.42%	-85.49%

Lifeway Foods Corporate Events

Lifeway Foods Reports Record Q3 2025 Financial Results

On September 30, 2025, Lifeway Foods entered into a Cooperation Agreement with Danone North America, leading to the disclosure of financial projections initially shared during a due diligence process. These projections, covering the years 2025 to 2029, were not intended for public release but were disclosed to provide transparency to stakeholders. Lifeway Foods also reported record financial results for Q3 2025, with net sales reaching $57.1 million, marking a 29% increase on a comparable basis. The company achieved significant gross margin expansion and net income growth, driven by strong consumer demand for its kefir products and strategic expansions, such as the Waukesha plant. Lifeway continues to innovate with new product offerings like Muscle Mates™ and partnerships to enhance kefir visibility, positioning itself to capitalize on health trends and sustain growth.

The most recent analyst rating on (LWAY) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Lifeway Foods Amends Bylaws for Flexible Board Size

On October 29, 2025, Lifeway Foods‘ Board approved an amendment to its Second Amended and Restated Bylaws, allowing for a Board size ranging from five to ten directors. The Board has currently set the number of directors at eight, indicating a strategic decision to potentially accommodate future growth or changes in governance.

The most recent analyst rating on (LWAY) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Lifeway Foods Extends Shareholder Rights Agreement

On October 29, 2025, Lifeway Foods, Inc. announced an extension of its Shareholder Rights Agreement by one year, now expiring on October 29, 2026. The decision was made to protect against potential acquisition of control by shareholders without paying a premium, given the company’s concentrated share ownership and the potential for a substantial number of shares to become available for sale. This move aims to ensure that all shareholders can realize the full value of their investment and safeguard against control tactics without fair compensation.

The most recent analyst rating on (LWAY) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Lifeway Foods Schedules 2025 Annual Shareholder Meeting

Lifeway Foods, Inc. announced that its 2025 annual meeting of shareholders is scheduled for December 16, 2025. Shareholder proposals or nominations must be submitted by October 20, 2025, adhering to the company’s by-laws and Rule 14a-8 requirements.

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.

Jody Levy Resigns as Director of Lifeway Foods

On October 1, 2025, Jody Levy resigned from her position as a director at Lifeway Foods, Inc., a company known for its production of probiotic and functional foods. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.

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 Announces Cooperation Agreement with Danone

On September 30, 2025, Lifeway Foods, Inc. announced a Cooperation Agreement with Danone North America PBC, which includes a stay of litigation related to a Stockholders’ Agreement and plans for a board refreshment. The agreement outlines governance changes, including the appointment of independent directors and the separation of the Chair and CEO roles. Danone has agreed to support the board’s director candidates at upcoming annual meetings and to waive certain rights under the Stockholders’ Agreement. This strategic move aims to enhance corporate governance and maximize shareholder value while maintaining stability and focus on Lifeway’s core mission.

The most recent analyst rating on (LWAY) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Lifeway Foods stock, see the LWAY Stock Forecast page.

Danone Withdraws Acquisition Proposal for Lifeway Foods

On September 18, 2025, Lifeway Foods announced that Danone has withdrawn its proposal to acquire the company. Lifeway remains focused on executing its strategic plan to enhance shareholder value, having formed a Strategic Review Committee to oversee opportunities. The company reported record-breaking sales in Q1 and Q2 2025, with continued growth into Q3, highlighting its strong market position and consistent performance.

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 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 Record Sales and Growth

Lifeway Foods, Inc. is a leading U.S. supplier of kefir and fermented probiotic foods, recognized for its innovative products in the dairy industry.