Detailed financial statements for Lifeway Foods, Inc. (LWAY): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Lifeway Foods, Inc. manufactures and distributes a variety of probiotic-rich goods, serving both the United States and international markets. Its principal offering is drinkable kefir, a fermented dairy item available in numerous forms, including organic and conventional options, various volumes, flavors, and formulations such as reduced-fat, fat-free, whole milk, high-protein, and BioKefir.
Analysis Summary
Lifeway Foods, Inc. reported revenue of $212.5M in the most recent fiscal year, growing at a 5-year CAGR of 15.8%. Net income reached $13.9M, with a 33.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 26.0%, operating margin 6.5%, net margin 4.5%.
At the current price of $24.42, LWAY trades at a P/E of 33.73 and an ROE of 12.66%. Market capitalisation stands at $373M.
Balance sheet quality for LWAY: current ratio of 2.2, net cash position of $5.1M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of -$16.4M represents -118% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $123.9M | $118.9M | $103.3M | $93.7M | $102.0M | $119.1M | $141.6M | $160.1M | $186.8M | $212.5M |
| Cost of Revenue | $88.8M | $88.2M | $77.5M | $71.5M | $75.1M | $90.4M | $114.8M | $117.7M | $138.2M | $154.3M |
| Gross Profit | $35.0M | $30.7M | $25.9M | $22.1M | $26.9M | $28.7M | $26.8M | $42.4M | $48.6M | $58.2M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $28.2M | $30.6M | $27.1M | $23.9M | $21.9M | $22.7M | $23.9M | $24.9M | $34.2M | $41.5M |
| Operating Expenses | $28.9M | $31.2M | $27.7M | $24.1M | $22.0M | $22.8M | $24.4M | $25.4M | $34.7M | $42.0M |
| Operating Income | $6.1M | -$526000 | -$3.1M | -$1.9M | $4.9M | $5.9M | $2.3M | $17.0M | $13.9M | $16.2M |
| EBITDA | $8.9M | $2.5M | $437000 | $4.8M | $8.2M | $8.6M | $5.1M | $20.2M | $17.5M | $23.7M |
| Interest Expense | $220000 | $242000 | $271000 | $249000 | $118000 | $116000 | $267000 | $384000 | $105000 | $77000 |
| Pre-tax Income | $5.6M | -$804000 | -$3.3M | $1.2M | $4.8M | $5.6M | $1.8M | $16.6M | $14.0M | $19.7M |
| Income Tax | $2.2M | -$458000 | -$225000 | $782000 | $1.6M | $2.3M | $917000 | $5.3M | $4.9M | $5.8M |
| Net Income | $3.5M | -$346000 | -$3.1M | $453000 | $3.2M | $3.3M | $924000 | $11.4M | $9.0M | $13.9M |
| EPS | $0.22 | $-0.02 | $-0.19 | $0.03 | $0.21 | $0.21 | $0.06 | $0.78 | $0.61 | $0.91 |
| EPS (Diluted) | $0.22 | $-0.02 | $-0.19 | $0.03 | $0.21 | $0.21 | $0.06 | $0.75 | $0.59 | $0.89 |
| Shares Outstanding (Diluted) | $16.2M | $16.1M | $16.3M | $15.8M | $15.8M | $15.8M | $15.7M | $15.1M | $15.3M | $15.5M |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $8.8M | $5.0M | $3.0M | $3.8M | $7.9M | $9.2M | $4.4M | $13.2M | $16.7M | $5.6M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $9.9M | $11.0M | $9.0M | $7.4M | $8.0M | $10.3M | $11.4M | $13.9M | $16.1M | $16.6M |
| Inventory | $8.0M | $7.7M | $5.8M | $6.4M | $6.9M | $8.3M | $9.6M | $9.1M | $8.7M | $11.9M |
| Total Current Assets | $28.2M | $24.7M | $18.9M | $19.2M | $24.1M | $29.0M | $27.0M | $38.2M | $43.6M | $37.1M |
| Property, Plant & Equipment | $21.8M | $24.6M | $24.6M | $23.0M | $21.4M | $20.3M | $21.1M | $23.0M | $27.0M | $48.7M |
| Goodwill | $10.4M | $10.4M | $9.1M | $9.1M | $10.3M | $11.7M | $11.7M | $11.7M | $11.7M | $11.7M |
| Intangible Assets | $5.3M | $4.7M | $4.0M | $3.9M | $3.7M | $8.0M | $7.4M | $6.9M | $6.4M | $5.8M |
| Total Assets | $65.9M | $64.5M | $56.8M | $58.5M | $62.1M | $71.5M | $69.0M | $82.6M | $90.5M | $105.6M |
| Accounts Payable | $5.7M | $6.8M | $4.6M | $5.3M | $5.6M | $6.6M | $8.0M | $10.0M | $10.4M | $11.0M |
| Short-term Debt | $840000 | $3.2M | 0 | $285000 | $179000 | $1.1M | $1.2M | $1.2M | 0 | $106000 |
| Total Current Liabilities | $9.4M | $13.2M | $7.5M | $9.5M | $8.4M | $12.1M | $13.0M | $16.6M | $15.5M | $16.6M |
| Long-term Debt | $6.3M | $3.1M | $6.0M | $2.7M | $2.8M | $6.2M | $5.3M | $1.5M | 0 | 0 |
| Total Liabilities | $17.5M | $17.9M | $14.4M | $15.3M | $15.2M | $22.4M | $21.4M | $22.2M | $18.6M | $19.8M |
| Retained Earnings | $50.0M | $49.6M | $46.6M | $47.0M | $50.2M | $53.5M | $54.4M | $65.8M | $74.8M | $88.7M |
| Total Equity | $48.4M | $46.6M | $42.4M | $43.3M | $46.9M | $49.1M | $47.6M | $60.4M | $71.9M | $85.8M |
| Total Debt | $7.1M | $6.3M | $6.0M | $3.5M | $3.1M | $7.5M | $6.7M | $2.9M | $117000 | $466000 |
| Net Debt | -$1.7M | $1.3M | $3.0M | -$318000 | -$4.8M | -$1.8M | $2.2M | -$10.3M | -$16.6M | -$5.1M |
| Working Capital | $18.8M | $11.5M | $11.5M | $9.7M | $15.6M | $17.0M | $13.9M | $21.6M | $28.1M | $20.4M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $3.5M | -$346000 | -$3.1M | $453000 | $3.2M | $3.3M | $924000 | $11.4M | $9.0M | $13.9M |
| Depreciation & Amortization | $3.0M | $3.1M | $3.5M | $3.3M | $3.2M | $2.9M | $3.0M | $3.2M | $3.4M | $4.0M |
| Stock-based Compensation | $326000 | $596000 | $802000 | $838000 | $393000 | $1.1M | $1.1M | $1.5M | $2.4M | $1.9M |
| Change in Working Capital | -$1.7M | -$94000 | -$11000 | $2.1M | -$1.2M | -$2.1M | -$1.1M | $969000 | -$2.0M | -$5.2M |
| Operating Cash Flow | $5.1M | $3.8M | $2.4M | $3.8M | $6.4M | $5.6M | $4.0M | $16.9M | $13.0M | $10.9M |
| Capital Expenditure | -$3.2M | -$5.3M | -$2.8M | -$1.2M | -$1.9M | -$1.9M | -$3.4M | -$4.4M | -$6.7M | -$27.4M |
| Acquisitions | -$341000 | $50000 | $104000 | $522000 | 0 | -$5.2M | -$580000 | 0 | 0 | 0 |
| Stock Repurchased | -$738000 | -$1.5M | -$1.4M | -$538000 | -$405000 | -$1.6M | -$4.0M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $1.9M | -$1.5M | -$407000 | $2.6M | $4.5M | $3.6M | $538000 | $12.6M | $6.3M | -$16.4M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | -4.0% | -13.1% | -9.4% | +8.9% | +16.7% | +18.9% | +13.1% | +16.7% | +13.7% | |
| Net Income Growth (YoY) | -109.9% | -791.9% | +114.7% | +613.5% | +2.4% | -72.1% | +1130.2% | -20.6% | +53.6% | |
| EPS Growth (YoY) | -109.8% | -783.7% | +115.2% | +629.2% | +0.0% | -71.4% | +1200.0% | -21.8% | +49.2% | |
| Shares Change (YoY) | -0.3% | +1.3% | -3.2% | -0.2% | +0.0% | -0.3% | -3.9% | +1.1% | +1.8% | |
| FCF Growth (YoY) | -182.1% | +73.5% | +746.9% | +70.5% | -18.9% | -85.2% | +2240.1% | -50.2% | -362.0% | |
| Gross Margin | 28.3% | 25.8% | 25.0% | 23.6% | 26.4% | 24.1% | 18.9% | 26.5% | 26.0% | 27.4% |
| Operating Margin | 4.9% | -0.4% | -3.0% | -2.1% | 4.8% | 4.9% | 1.7% | 10.6% | 7.4% | 7.6% |
| EBITDA Margin | 7.2% | 2.1% | 0.4% | 5.1% | 8.0% | 7.2% | 3.6% | 12.6% | 9.3% | 11.2% |
| Net Margin | 2.8% | -0.3% | -3.0% | 0.5% | 3.2% | 2.8% | 0.7% | 7.1% | 4.8% | 6.5% |
| FCF Margin | 1.5% | -1.3% | -0.4% | 2.8% | 4.4% | 3.1% | 0.4% | 7.9% | 3.4% | -7.7% |
| Effective Tax Rate | 38.3% | 57.0% | 6.8% | 63.3% | 33.1% | 41.0% | 49.8% | 31.7% | 35.4% | 29.6% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.12 | $-0.10 | $-0.02 | $0.17 | $0.28 | $0.23 | $0.03 | $0.83 | $0.41 | $-1.06 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $16.2M | $16.1M | $15.9M | $15.7M | $15.6M | $15.5M | $15.4M | $14.7M | $14.8M | $15.2M |
What to look at in Consumer Defensive companies
- Gross margin (stable 5y) (Stable >=35%) — Brand pricing power — Coca-Cola does not drop margins.
- ROE / ROIC stable (ROE >=15% stable) — Defensive businesses have high consistent ROEs — Lynch's stalwarts.
- FCF / Net Income (>=90%) — Earnings to cash conversion — best names exceed 95%.
- Dividend growth 10y (>=6%/year) — Dividend Aristocrats raise 25+ years — moat signal.
- Payout Ratio (<75%) — >80% = dividend at risk. <60% comfortable.
- Net Debt / EBITDA (<2.5x) — Defensive with high debt loses its essence.
Profitability
| Return on Equity | 12.66% |
| Return on Invested Capital | 10.05% |
| Return on Assets | 8.21% |
| Gross Margin | 26.01% |
| Operating Margin | 6.49% |
| Net Margin | 4.48% |
Financial Health
| Debt / Equity | 0.27 |
| Current Ratio | 2.09 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 52.32 | -372.09 | -9.89 | 69.10 | 25.76 | 21.90 | 92.50 | 17.19 | 40.66 | 26.63 |
| P/B | 3.84 | 2.77 | 0.70 | 0.72 | 1.80 | 1.45 | 1.80 | 3.25 | 5.09 | 4.29 |
| P/S | 1.50 | 1.08 | 0.29 | 0.33 | 0.83 | 0.60 | 0.60 | 1.23 | 1.96 | 1.73 |
| Gross Margin | 28.3% | 25.8% | 25.0% | 23.6% | 26.4% | 24.1% | 18.9% | 26.5% | 26.0% | 27.4% |
| Operating Margin | 4.9% | -0.4% | -3.0% | -2.1% | 4.8% | 4.9% | 1.7% | 10.6% | 7.4% | 7.6% |
| Net Margin | 2.8% | -0.3% | -3.0% | 0.5% | 3.2% | 2.8% | 0.7% | 7.1% | 4.8% | 6.5% |
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Explore sector: Consumer Defensive · Packaged Foods
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