Lifeway FoodsFRA:LWF -3.79%89 Gross Margin % is 27.54% as of Mar. 2026, which is 6% above its 10-year median of 25.91. GuruFocus rates FRA:LWF with a GF Score™ of 89/100 and a GF Value™ of €22.31 (Modestly Overvalued). Among 1,900 Consumer Packaged Goods companies, Lifeway Foods ranks better than 53.95% on this metric.
The historical rank and industry rank for Lifeway Foods's Gross Margin % or its related term are showing as below:
FRA:LWF'
s Gross Margin % Range Over the Past 10 Years
Min: 18.92 Med: 25.91 Max: 28.28
Current: 28.12
During the past 13 years, the highestGross Margin % of Lifeway Foods was 28.28%. The lowest was 18.92%. And the median was 25.91%.
FRA:LWF's Gross Margin % is ranked better than 53.95% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs FRA:LWF: 28.12
Lifeway Foods had a gross margin of 27.54% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lifeway Foods was 2.20% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lifeway Foods had a gross margin of 27.54% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lifeway Foods Gross Margin % Related Terms
Lifeway Foods Gross Margin % Historical Data
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The historical data trend for Lifeway Foods's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:LWF vs USNA, NATR, ENHA: Gross Margin % Comparison
For the Packaged Foods subindustry, Lifeway Foods's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lifeway Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lifeway Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lifeway Foods's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lifeway Foods (FRA:LWF) has a Gross Margin % of 27.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lifeway Foods and its competitors. This is near median its historical median of 25.91. Over the past decade, Lifeway Foods' Gross Margin % has ranged from 18.92 to 28.28. According to the industry distribution chart, Lifeway Foods ranks #875 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 46.1%.
Is Lifeway Foods' Gross Margin % too high?
Lifeway Foods' current Gross Margin % of 27.54% is near median its 10-year median of 25.91. Over the past 10 years, this metric has ranged from a low of 18.92 to a high of 28.28. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Lifeway Foods' value of 27.54% is 4.4% above this industry median. Based on the distribution chart, Lifeway Foods ranks #875 out of 1900 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lifeway Foods has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lifeway Foods' Gross Margin % compare to USNA and NATR?
According to the Consumer Packaged Goods industry distribution chart, Lifeway Foods ranks #875 out of 1900 companies for Gross Margin %. This puts Lifeway Foods in the upper half of its industry. The industry median Gross Margin % is 26.37. Lifeway Foods' value of 27.54% is 4.4% above this benchmark. Historically, Lifeway Foods' own Gross Margin % has ranged from 18.92 to 28.28 over the past decade. While the company's 10-year median is 25.91 vs. the industry median of 26.37, Lifeway Foods has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lifeway Foods's current Gross Margin % of 27.54% is 4.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lifeway Foods and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lifeway Foods's current Gross Margin % is 27.54%, which is near median its own 10-year median of 25.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lifeway Foods stock overvalued right now?
Based on GuruFocus' analysis, Lifeway Foods (FRA:LWF) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.31, compared to a current price of €25.40 — trading 13.9% above its estimated fair value. The current Gross Margin % is 27.54%, which is near median its 10-year median of 25.91 and 4.4% above the Consumer Packaged Goods industry median of 26.37. Lifeway Foods' overall GF Score™ is 89/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lifeway Foods (FRA:LWF), the current Gross Margin % is 27.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lifeway Foods (FRA:LWF) Overvalued in 2026?
Based on GuruFocus' analysis, Lifeway Foods stock appears to be overvalued.
The current stock price of €25.40 is trading 13.9% above its estimated GF Value™ of €22.31.
GuruFocus considers Lifeway Foods to be Modestly Overvalued.
Key valuation signals for FRA:LWF:
Gross Margin %: 27.54% (near median its 10-year median of 25.91)
GF Value™: €22.31 vs. price of €25.40 (13.9% above fair value)
Industry Position: 4.4% above the Consumer Packaged Goods median (#875 of 1900)
No single metric tells the full story. See the FRA:LWF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lifeway Foods Inc is engaged in manufacturing probiotic, cultured, functional dairy health food products. Its primary product is drinkable kefir, which is a cultured dairy product. Its product categories are Drinkable Kefir, which is the key revenue-driving product, European-style soft cheeses, Cream, ProBugs, Frozen Kefir, and Other dairy. The company manufactures and markets products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers. It sells the products through a direct sales force, brokers, and distributors.
89GF Score
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