Lifeway Foods (LWAY)
NASDAQ:LWAY
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Lifeway Foods
(NASDAQ:LWAY)
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Rating:63Neutral
Price Target:
$27.00
▼(-0.52% Downside)
Action:ReiteratedDate:04/02/26
The score is driven by strong balance-sheet strength and positive earnings-call momentum (record sales, margin expansion, and reiterated long-term targets). This is tempered by a major financial-quality concern from the latest cash-flow figures (2025 operating/free cash flow shown as $0), mixed/weak technical momentum, and a relatively full valuation (P/E 26.6) without a provided dividend yield.
Positive Factors
Very low leverage / strong balance sheet
Extremely low reported debt versus growing equity provides durable financial flexibility. Low leverage reduces refinancing and interest-rate risk, enabling the company to fund capex, marketing, and working capital from internal resources or inexpensive borrowing without threatening solvency over the next 2–6 months.
Negative Factors
Abrupt cash-flow deterioration
A sudden drop to zero operating and free cash flow undermines earnings quality and raises concerns about working-capital strain or one-time cash items. Persistent or repeated cash conversion issues could constrain funding for capex, marketing, or debt service despite reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low reported debt versus growing equity provides durable financial flexibility. Low leverage reduces refinancing and interest-rate risk, enabling the company to fund capex, marketing, and working capital from internal resources or inexpensive borrowing without threatening solvency over the next 2–6 months.
Read all positive factors
Lifeway Foods (LWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$372.38M
Dividend YieldN/A
Average Volume (3M)91.81K
Price to Earnings (P/E)36.3
Beta (1Y)0.93
Revenue Growth12.14%
EPS Growth-17.80%
CountryUS
Employees291
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.16
Shares Outstanding15,149,600
10 Day Avg. Volume70,180
30 Day Avg. Volume91,809
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)4.29
Price to Sales (P/S)1.73
P/FCF Ratio-22.35
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.81
Enterprise Value/Gross Profit6.63
Enterprise Value/Ebitda19.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.19
Revenue Forecast (FY)$243.00M
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 lo...
How the Company Makes Money
Lifeway Foods primarily makes money by manufacturing and selling fermented cultured dairy products—most notably Lifeway-branded drinkable kefir—through wholesale distribution to retailers and other customers. Revenue is generated mainly from produ...
Lifeway Foods Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial trajectory: record sales, meaningful margin expansion and a 54% increase in net income underpin a clear growth story. The company is investing aggressively in capacity, marketing and innovation to sustain momentum (Farmer Cheese distribution gains, new product launches, and strategic partnerships). Notable risks include higher SG&A due to investment spend, large ongoing capex with execution risk, exposure to milk-price movements, and transitional effects from strategic customer modifications. On balance, the positive top-line growth, margin gains and profitability improvements outweigh the listed challenges.Positive Updates
Record-Breaking Full Year Net Sales
Full year net sales of $212.5 million, up 13.7% year-over-year. On a comparable basis (adjusting for two strategic customer-relationship modifications begun in late 2024), growth was approximately 19%. This marks the sixth consecutive full year of volume-led annual net sales growth.
Negative Updates
Higher SG&A Relative to Sales from Growth Investments
Selling, general & administrative expenses were 19.6% of net sales for the full year (described as 'up slightly' versus prior year) and 20.7% of net sales in Q4. Management attributed the increase to continued investments in marketing, sales activations and retail expansion, which may pressure near-term operating leverage.
Read all updates
Q4-2025 Updates
Positive
Negative
Record-Breaking Full Year Net Sales
Full year net sales of $212.5 million, up 13.7% year-over-year. On a comparable basis (adjusting for two strategic customer-relationship modifications begun in late 2024), growth was approximately 19%. This marks the sixth consecutive full year of volume-led annual net sales growth.
Read all positive updates
Company Guidance
Lifeway reiterated a long-term adjusted EBITDA target of $45 million to $50 million for fiscal 2027 and said it is “poised to deliver record‑breaking sales” in fiscal 2026; operationally, the company is advancing a $45 million Waukesha expansion (Phase 2 ribbon cutting complete) with a state‑of‑the‑art cooling system on target for completion by the end of 2026 to double manufacturing capacity, increase production hours and staffing, and drive efficiencies as it continues to invest in capacity, marketing and innovation.Lifeway Foods Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 212.50M | 186.82M | 160.12M | 141.57M | 119.06M |
| Gross Profit | 58.21M | 48.57M | 42.44M | 26.79M | 28.71M |
| EBITDA | 20.15M | 17.46M | 20.20M | 5.08M | 8.61M |
| Net Income | 13.86M | 9.03M | 11.37M | 924.00K | 3.31M |
Balance Sheet | |||||
| Total Assets | 105.61M | 90.55M | 82.64M | 69.00M | 71.55M |
| Cash, Cash Equivalents and Short-Term Investments | 5.57M | 16.73M | 13.20M | 4.44M | 9.23M |
| Total Debt | 466.00K | 117.00K | 2.92M | 6.68M | 7.46M |
| Total Liabilities | 19.79M | 18.64M | 22.20M | 21.43M | 22.42M |
| Stockholders Equity | 85.82M | 71.91M | 60.44M | 47.57M | 49.13M |
Cash Flow | |||||
| Free Cash Flow | -16.48M | 6.26M | 12.59M | 538.00K | 3.64M |
| Operating Cash Flow | 10.88M | 12.96M | 16.94M | 3.99M | 5.56M |
| Investing Cash Flow | -22.04M | -6.68M | -4.41M | -4.03M | -7.14M |
| Financing Cash Flow | -65.00K | -2.75M | -3.78M | -4.75M | 2.88M |
Lifeway Foods Technical Analysis
Positive
27.14
Price Trends
21.47
Positive
22.27
Positive
24.64
Positive
Market Momentum
1.26
Negative
74.76
Negative
92.98
Negative
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 27.14 is above the 20-day moving average (MA) of 21.66, above the 50-day MA of 21.47, and above the 200-day MA of 24.64, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 74.76 is Negative, neither overbought nor oversold. The STOCH value of 92.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LWAY.
Lifeway Foods Risk Analysis
Lifeway Foods disclosed 21 risk factors in its most recent earnings report. Lifeway Foods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifeway Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $638.31M | 111.13 | 13.36% | ― | 29.92% | 30.02% | |
63 Neutral | $372.38M | 36.31 | 17.25% | ― | 12.14% | -17.80% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $462.20M | 19.90 | 12.18% | ― | 6.62% | -7.85% | |
53 Neutral | $348.84M | 33.56 | 2.03% | ― | 5.88% | -68.62% | |
50 Neutral | $495.05M | -4.37 | -30.31% | ― | 28.89% | -13.96% | |
45 Neutral | $209.95M | -8.87 | -41.47% | ― | -3.42% | -85.49% |
* Consumer Defensive Sector Average
LWAY
Lifeway Foods
25.66
2.59
11.23%
NATR
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27.34
15.98
140.67%
USNA
USANA Health
20.06
-3.77
-15.82%
MAMA
Mama's Creations
14.69
8.49
136.94%
BRCC
BRC
0.88
-1.25
-58.54%
WEST
Westrock Coffee
5.50
-0.11
-1.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.