Lifeway Foods Operating Margin vs. Current Valuation
| LWF Stock | EUR 23.20 0.20 0.87% |
For Lifeway Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lifeway Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lifeway Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lifeway Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lifeway Foods over time as well as its relative position and ranking within its peers.
Lifeway |
Lifeway Foods Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lifeway Foods's current stock value. Our valuation model uses many indicators to compare Lifeway Foods value to that of its competitors to determine the firm's financial worth. Lifeway Foods is currently regarded as number one stock in operating margin category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 16,504,223,621 of Current Valuation per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lifeway Foods' earnings, one of the primary drivers of an investment's value.Lifeway Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Lifeway Foods |
| = | 0.01 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Lifeway Foods |
| = | 95.72 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Lifeway Current Valuation vs Competition
Lifeway Foods is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Packaged Foods industry is now estimated at about 51.27 Billion. Lifeway Foods adds roughly 95.72 Million in current valuation claiming only tiny portion of equities listed under Packaged Foods industry.
Lifeway Foods Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lifeway Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lifeway Foods will eventually generate negative long term returns. The profitability progress is the general direction of Lifeway Foods' change in net profit over the period of time. It can combine multiple indicators of Lifeway Foods, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Lifeway Foods, Inc. was founded in 1986 and is based in Morton Grove, Illinois. LIFEWAY FOODS operates under Packaged Foods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 322 people.
Lifeway Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lifeway Foods. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lifeway Foods position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lifeway Foods' important profitability drivers and their relationship over time.
Use Lifeway Foods in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lifeway Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lifeway Foods will appreciate offsetting losses from the drop in the long position's value.Lifeway Foods Pair Trading
Lifeway Foods Pair Trading Analysis
The ability to find closely correlated positions to Lifeway Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lifeway Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lifeway Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lifeway Foods to buy it.
The correlation of Lifeway Foods is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lifeway Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lifeway Foods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lifeway Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Lifeway Foods position
In addition to having Lifeway Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Lifeway Stock
When determining whether Lifeway Foods offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lifeway Foods' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lifeway Foods Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lifeway Foods Stock:Check out Correlation Analysis. For more detail on how to invest in Lifeway Stock please use our How to Invest in Lifeway Foods guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Lifeway Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lifeway Foods at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lifeway Foods' income statement, its balance sheet, and the statement of cash flows.