Lifeway Story

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LWAY -- USA Stock  

USD 5.16  0.18  3.37%

It appears Lifeway Foods will continue to recover much faster as its share price surged up 2.65% today. This firm current daily volatility is 3.21 percent, with a beta of 0.14 and an alpha of 0.11 over DOW. As many investors are getting excited about food products, it is fair to break down Lifeway Foods. We will evaluate why recent Lifeway Foods price moves suggest a bounce in April.
Published over three weeks ago
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Will Lifeway Foods (NASDAQ:LWAY) volatility rise before April
Lifeway Foods currently holds roughly 7.62 M in cash with 4.21 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.49.
On a scale of 0 to 100, Lifeway Foods holds a performance score of 8. The company secures a Beta (Market Risk) of 0.142, which conveys not very significant fluctuations relative to the market. Let's try to break down what Lifeway's beta means in this case. As returns on the market increase, Lifeway Foods returns are expected to increase less than the market. However, during the bear market, the loss on holding Lifeway Foods will be expected to be smaller as well. Although it is vital to follow Lifeway Foods price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Lifeway Foods technical indicators, you can presently evaluate if the expected return of 0.39% will be sustainable into the future. Please exercises Lifeway Foods sortino ratio, as well as the relationship between the semi variance and rate of daily change to make a quick decision on whether Lifeway Foods current price movements will revert.
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' stock 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.
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 Lifeway utilizes 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 6.38 Million in 2020

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

Payment of 41 shares by Eric Hanson 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 payment of common stock no par value by Eric Hanson, Chief Fin and Acctg Officer, on 6th of April 2021. This event was filed by Lifeway Foods Inc with SEC on 2021-04-06. Statement of changes in beneficial ownership - SEC Form 4. Eric Hanson currently serves as interim cfo, chief accounting officer of Lifeway Foods [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

Lifeway Foods appears to be somewhat reliable, given 1 month investment horizon. Lifeway Foods has Sharpe Ratio of 0.12, which conveys that the firm had 0.12% of return per unit of risk over the last month. 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-eight technical indicators for Lifeway Foods, which you can use to evaluate future volatility of the firm. Please exercise Lifeway Foods Mean Deviation of 2.59, downside deviation of 4.28, and Risk Adjusted Performance of 0.0407 to check out if our risk estimates are consistent with your expectations.
FAMI
BGS
DTEA
CPB
LW
FAMI
0.210.54-0.260.01
FAMI
BGS
0.210.370.53-0.1
BGS
DTEA
0.540.37-0.10.38
DTEA
CPB
-0.260.53-0.1-0.27
CPB
LW
0.01-0.10.38-0.27
LW
FAMI
BGS
DTEA
CPB
LW
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Lifeway Foods growth be viable after the rise?

Current treynor ratio is at 0.86. Lifeway Foods exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Lifeway Foods individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Lifeway Foods future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lifeway Foods' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lifeway Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Lifeway Foods

While some firms within the packaged foods industry are still a little expensive, even after the recent corrections, Lifeway Foods may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Lifeway valuation and our trade advice on Lifeway Foods is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lifeway Foods.

About Contributor

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 Ellen Johnson do not own shares of Lifeway Foods. Please refer to our Terms of Use for any information regarding our disclosure principles.

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