Lifeway Foods (LWAY) AI Stock Analysis

• Market Cap: $365.34M
• Dividend Yield: N/A
• Average Volume (3M): 140.93K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.64
• 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: 15,228,763
• 10 Day Avg. Volume: 54,892
• 30 Day Avg. Volume: 140,932
• 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: 0.98
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 18.21
• 1Y Price Target: $33.00
• Price Target Upside: 21.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $25.00 ▼(-7.89% Downside)

Lifeway Foods' overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and balance sheet strength. However, significant weaknesses in cash flow management and bearish technical indicators weigh heavily on the score. The high P/E ratio suggests potential overvaluation, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Lifeway's products, enhancing its market position and supporting long-term expansion.

Balance Sheet Strength

Minimal leverage reduces financial risk, providing Lifeway with flexibility to invest in growth opportunities and withstand economic downturns.

Product Innovation

Continuous innovation in product offerings attracts new customers and retains existing ones, driving sustainable revenue growth and market differentiation.

Negative Factors

Cash Flow Management

Challenges in converting income into cash can limit Lifeway's ability to reinvest in the business, impacting long-term financial stability.

Net Profit Margin Decline

Declining net profit margins suggest rising costs or inefficiencies, which may erode profitability if not addressed, affecting long-term viability.

Leadership Change

Leadership changes can disrupt strategic direction and execution, potentially impacting Lifeway's ability to maintain its competitive edge.

Lifeway Foods Business Overview & Revenue Model

Company Description

Lifeway Foods, Inc. is a leading manufacturer and marketer of probiotic dairy products, primarily known for its kefir, a fermented milk drink rich in beneficial probiotics. Founded in 1986 and headquartered in Morton Grove, Illinois, the company operates in the health and wellness sector, focusing on the production of cultured dairy products that promote digestive health. Lifeway's core offerings include a variety of kefir products, yogurt, and other probiotic-rich foods, targeting health-conscious consumers seeking functional dairy alternatives.

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: 27.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 27.14 is above the 20-day moving average (MA) of 26.24, below the 50-day MA of 28.28, and above the 200-day MA of 25.06, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 28.69 is Positive, neither overbought nor oversold. The STOCH value of 12.02 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
MAMA	―	$428.88M	92.57	17.44%	―	19.34%	-12.64%
NATR	―	$237.73M	18.07	9.15%	―	4.33%	-6.33%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
USNA	―	$386.45M	23.76	3.20%	―	5.88%	-68.62%
LWAY	―	$365.34M	34.71	14.46%	―	9.19%	-23.91%
BRCC	―	$347.52M	-9.76	-89.88%	―	-4.59%	-19.09%
WEST	―	$417.66M	―	-27.07%	―	13.05%	-72.80%

Lifeway Foods Corporate Events

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.

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.