Lifeway Stock Story

All Stories . Risk . 
Vlad Skutelnik .  Story
LWAY -  USA Stock  

USD 4.99  0.10  2.04%

By Vlad Skutelnik
Macroaxis Story
It appears Lifeway Foods may not recover as fast as we have hopped for as its price went down 2.11% today. The company current daily volatility is 5.07 percent, with a beta of 0.67 and an alpha of 0.24 over DOW. As some investors are moving away from the current market volatility rise, we are going to break down Lifeway Foods based on how it reacts to economic swings. We will evaluate if Lifeway Foods shares are reasonably priced going into June.
Published over a month ago
View all stories for Lifeway Foods | View All Stories
Chances of Lifeway Foods to slide after the volatility rises
Lifeway Foods currently holds roughly 10.02 M in cash with 7.47 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.65.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lifeway Foods has an asset utilization ratio of 166.66 percent. This suggests that the company is making $1.67 for each dollar of assets. An increasing asset utilization means that Lifeway Foods is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Lifeway Foods, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Lifeway Foods along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Lifeway Foods' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Lifeway Foods in the context of predictive analytics.
Hype
Prediction
Details
Intrinsic
Valuation
Details
Naive
Forecast
Details
2 Analysts
Consensus
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lifeway Foods. Your research has to be compared to or analyzed against Lifeway Foods' peers to derive any actionable benefits. When done correctly, Lifeway Foods' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Lifeway Foods.

How important is Lifeway Foods's Liquidity

Lifeway Foods financial leverage refers to using borrowed capital as a funding source to finance Lifeway Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lifeway Foods financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lifeway Foods's total debt and its cash.

How does Lifeway utilize its cash?

To perform a cash flow analysis of Lifeway Foods, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lifeway Foods is receiving and how much cash it distributes out in a given period. The Lifeway Foods cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lifeway Foods Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Lifeway Foods reported Net Cash Flow from Operations of 5.75 Million in 2021

Lifeway Foods Correlation with Peers

Investors in Lifeway can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Lifeway Foods. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Lifeway Foods and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Lifeway is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Lifeway for more details

Acquisition by Mcwhorter Dorri of 5272 shares of Lifeway Foods subject to Rule 16b-3

Legal trades by Lifeway Foods insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lifeway insider trading alert for grant of common stock no par value by Mcwhorter Dorri, the corporate stakeholder, on 23rd of June 2022. This event was filed by Lifeway Foods Inc with SEC on 2022-06-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Lifeway Foods Indicators

We consider Lifeway Foods slightly risky. Lifeway Foods has Sharpe Ratio of 0.0316, which conveys that the firm had 0.0316% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Lifeway Foods, which you can use to evaluate the future volatility of the firm. Please verify Lifeway Foods Mean Deviation of 3.39, risk adjusted performance of 0.0448, and Downside Deviation of 3.89 to check out if the risk estimate we provide is consistent with the expected return of 0.16%.
FREE
GIS
MGPI
FREE
-0.41-0.78
FREE
GIS
-0.410.78
GIS
MGPI
-0.780.78
MGPI
FREE
GIS
MGPI
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Analysis of Lifeway Foods

The coefficient of variation is down to 3593.42 as of today.
As of the 20th of May, Lifeway Foods secures the Downside Deviation of 3.89, risk adjusted performance of 0.0448, and Mean Deviation of 3.39. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lifeway Foods, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Lifeway Foods, which can be compared to its peers in the industry. Please verify Lifeway Foods semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Lifeway Foods is priced some-what accurately, providing market reflects its recent price of 5.1 per share. Given that Lifeway Foods has jensen alpha of 0.2419, we recommend you to check Lifeway Foods's last-minute market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Lifeway Foods

While other companies in the packaged foods industry are either recovering or due for a correction, Lifeway may not be as strong as the others in terms of longer-term growth potentials. While some short-term oriented investors may not share our view, we believe it may be a good time to acquire new shares of Lifeway.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Lifeway Foods. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2022 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY