Is Lifeway Foods, Inc. (LWAY) Halal?

NASDAQ Consumer Defensive United States $279M
✓ HALAL
Confidence: 95/100
Lifeway Foods, Inc. (LWAY) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.0% against the AAOIFI threshold of 30%, Lifeway Foods, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Packaged Foods), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.0%
/ 30%
5.2%
/ 30%
5.0%
/ 30%
0.12%
/ 5%
✓ HALAL
DJIM 0.0%
/ 33%
5.2%
/ 33%
5.0%
/ 33%
0.12%
/ 5%
✓ HALAL
MSCI 0.1%
/ 33%
18.5%
/ 33%
17.7%
/ 33%
0.12%
/ 5%
✓ HALAL
S&P 0.0%
/ 33%
5.2%
/ 33%
5.0%
/ 33%
0.12%
/ 5%
✓ HALAL
FTSE 0.1%
/ 33%
18.5%
/ 33%
17.7%
/ 50%
0.12%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
20.6
Forward: 13.4
EPS
$0.89
P/B Ratio
3.2
EV/EBITDA
13.5
EV: $272M
Revenue
$212M
Growth: 18.0%
Beta
0.1
Low volatility
Current Ratio
2.2

Profitability

Gross Margin 29.0%
Operating Margin 6.8%
Net Margin 6.5%
Return on Equity (ROE) 17.6%
Return on Assets (ROA) 10.3%

Cash Flow & Balance Sheet

Operating Cash Flow$11M
Free Cash Flow-$16M
Total Debt$466,000
Debt-to-Equity0.5
Current Ratio2.2
Total Assets$106M

Price & Trading

Last Close$18.55
50-Day MA$21.17
200-Day MA$24.75
Avg Volume51K
Beta0.1
52-Week Range
$17.31
$34.20

About Lifeway Foods, Inc. (LWAY)

CEO
Ms. Julie Smolyansky
Employees
293
Sector
Consumer Defensive
Industry
Packaged Foods
Country
United States
Exchange
NASDAQ
Market Cap
$279M
Currency
USD

Lifeway Foods, Inc. produces and markets probiotic-based products in North America. The company's primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and milk types. It offers European-style soft cheeses, including farmer and white cheeses, and sweet kiss; cream and other products; drinkable yogurt; ProBugs, a line of kefir products designed for children; and Fresh Made butter and sour cream. The company sells its products under the Lifeway, Fresh Made, and GlenOaks Farms brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.

Purification Calculator

As a halal stock with 0.12% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Lifeway Foods, Inc. (LWAY) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lifeway Foods, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Lifeway Foods, Inc.'s debt ratio?

Lifeway Foods, Inc.'s debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.1%.

Does Lifeway Foods, Inc. require dividend purification?

Yes, Lifeway Foods, Inc. has an impermissible income ratio of 0.12%, which means 0.12% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Lifeway Foods, Inc.'s key financial metrics?

Lifeway Foods, Inc. has a market capitalization of $279M, trailing P/E ratio of 20.6, and revenue of $212M. The company maintains a gross margin of 29.0% and a net margin of 6.5%. Return on equity stands at 17.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.