Mar 24, 2026, 3:10 AM ETLifeway Foods, Inc. (LWAY) StockDANOYEric Novinson272 FollowersCommentsLifeway Foods is delivering double-digit revenue growth and expanding its product portfolio, but a recent selloff leaves shares trading at a discount to peers.LWAY's negative cash flow is temporary, driven by a $48M kefir plant upgrade, with positive free cash flow expected to return in 2027.Adjusted operating margins are pressured by elevated selling costs and recent legal expenses, but margin recovery is anticipated as one-time legal costs subside.At a forward P/E of 15, LWAY appears fairly valued relative to growth and sector peers; I downgrade to hold pending resolution of shareholder disputes and factory completion.Mizina/iStock via Getty ImagesI still think Lifeway Foods (LWAY) could become a good GARP stock. While food companies are typically considered defensive investments, this company is reporting double-digit revenue growth. And after its recent selloff, it’s trading at a large discountThis article was written byEric Novinson272 FollowersI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments