Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dairy products specialist Lifeway Foods (NASDAQ: LWAY ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Lifeway, and see what CAPS investors are saying about the stock right now.
Lifeway facts
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| Headquarters (founded) | Morton Grove, Ill. (1986) |
| Market Cap | $285.4 million |
| Industry | Packaged foods |
| Trailing-12-Month Revenue | $86.3 million |
| Management | CEO Julie Smolyansky (since 2002) CFO Edward Smolyansky (since 2004) |
| Return on Equity (average, past 3 years) | 11.5% |
| Cash/Debt | $5.1 million / $5.4 million |
| Dividend Yield | 0.5% |
| Competitors | Dean Foods General Mills |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 16% of the 61 All-Star members who have rated Lifeway believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those bears, fellow Fool Rich Smith (TMFDitty), touched on the stock's seemingly unsustainable valuation:
I'll take advantage of an unwarranted price spike to short this one [on Thursday]. LWAY is a great company, but it's just reneged on a commitment to not spend money on expanding capacity, buying a plant to quadruple capacity instead. And [free cash flow] is down in comparison with last year's Q1. Time to exit.
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