/
Lifeway was founded in 1986 by Michael Smolyansky, ten years after he and his family emigrated from Eastern Europe to the United States. Lifeway was the first to successfully introduce kefir to the U.S. consumer on a commercial scale, initially catering to ethnic consumers in the Chicago, Illinois metropolitan area.
Operating margin is thin at 7.61%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 13.7%, still solid. Free cash flow declined 362% despite revenue growth, conversion is weakening.
Free cash flow declined 362% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$16M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$229M
▲ +13.7% YoY
Net Income (TTM)
$15M
▲ +53.6% YoY
Op. Margin
9.12%
▲ +0.2pp YoY
ROIC
17.61%
Cash Flow & Balance Sheet
FCF (TTM)
-$21M
▼ -362.0% YoY
Op. Cash Flow (TTM)
$15M
▼ -15.5% YoY
Net Debt
-$5M
Net Cash Position
Cash & Equiv.
$6M
5Y CAGR: +15.8%
Continue Research