Lifeway Foods Inc. Common Stock (LWAY)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 17.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 13.9 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 18.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($11) with negative 142% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Lifeway Foods Inc. Common Stock is a micro-cap consumer defensive company valued at $392 million. Revenue stands at $212 million. From a quality standpoint, Lifeway shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 13.9 confirms fortress-level solvency. On valuation, the stock is trading at a premium 29.7x earnings, with trades far above its Graham Number ($11) with no margin of safety. Growth dynamics show revenue growing at 18.0% and profit growth of 1688.1%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Lifeway's 18% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer