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Lifeway FoodsLWAY -1.68%86 Return-on-Tangible-Equity is 0.72% as of Jun. 2026, which is 93% below its 10-year median of 10.44. GuruFocus rates LWAY with a GF Score™ of 86/100 and a GF Value™ of $28.29 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,885 Consumer Packaged Goods companies, Lifeway Foods ranks better than 73.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lifeway Foods's annualized net income for the quarter that ended in Jun. 2026 was $0.5 Mil. Lifeway Foods's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $70.1 Mil. Therefore, Lifeway Foods's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 0.72%.
The historical rank and industry rank for Lifeway Foods's Return-on-Tangible-Equity or its related term are showing as below:
LWAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.15 Med: 10.44 Max: 32.36
Current: 16.25
During the past 13 years, Lifeway Foods's highest Return-on-Tangible-Equity was 32.36%. The lowest was -10.15%. And the median was 10.44%.
LWAY's Return-on-Tangible-Equity is ranked better than 73.42% of 1885
companies
in the Consumer Packaged Goods industry
Industry Median: 8.04
vs LWAY: 16.25
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lifeway Foods Return-on-Tangible-Equity Related Terms
Lifeway Foods Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lifeway Foods's Return-on-Tangible-Equity 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.
LWAY vs USNA, ENHA, NATR: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Lifeway Foods's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lifeway Foods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lifeway Foods's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.72% mean?
Lifeway Foods (LWAY) has a Return-on-Tangible-Equity of 0.72% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lifeway Foods and its competitors. This is 93% below median its historical median of 10.44. According to the industry distribution chart, Lifeway Foods ranks #501 out of 1885 companies in the Consumer Packaged Goods industry, placing it in the top 26.6%.
Is Lifeway Foods' Return-on-Tangible-Equity too high?
Lifeway Foods' current Return-on-Tangible-Equity of 0.72% is 93% below median its 10-year median of 10.44. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 8.04. Lifeway Foods' value of 0.72% is 91% below this industry median. Based on the distribution chart, Lifeway Foods ranks #501 out of 1885 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lifeway Foods has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lifeway Foods' Return-on-Tangible-Equity compare to USNA and ENHA?
According to the Consumer Packaged Goods industry distribution chart, Lifeway Foods ranks #501 out of 1885 companies for Return-on-Tangible-Equity. This puts Lifeway Foods in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.04. Lifeway Foods' value of 0.72% is 91% below this benchmark. While the company's 10-year median is 10.44 vs. the industry median of 8.04, Lifeway Foods has consistently been below 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 Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 8.04, based on 1,885 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lifeway Foods's current Return-on-Tangible-Equity of 0.72% is 91% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lifeway Foods and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 8.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lifeway Foods's current Return-on-Tangible-Equity is 0.72%, which is 93% below median its own 10-year median of 10.44. 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 (LWAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $28.29, compared to a current price of $25.04 — trading 11.5% below its estimated fair value. The current Return-on-Tangible-Equity is 0.72%, which is 93% below median its 10-year median of 10.44 and 91% below the Consumer Packaged Goods industry median of 8.04. Lifeway Foods' overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lifeway Foods (LWAY), the current Return-on-Tangible-Equity is 0.72% as of Jun. 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 (LWAY) Overvalued in 2026?
Based on GuruFocus' analysis, Lifeway Foods stock appears to be undervalued.
The current stock price of $25.04 is trading 11.5% below its estimated GF Value™ of $28.29.
GuruFocus considers Lifeway Foods to be Modestly Undervalued.
Key valuation signals for LWAY:
Return-on-Tangible-Equity: 0.72% (93% below median its 10-year median of 10.44)
GF Value™: $28.29 vs. price of $25.04 (11.5% below fair value)
Industry Position: 91% below the Consumer Packaged Goods median (#501 of 1885)
No single metric tells the full story. See the LWAY 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.
86GF Score
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