Company Overview
Splash Beverage Group, Inc. operates within the consumer defensive sector, specifically targeting the beverages - wineries & distilleries industry, where it focuses on the manufacturing, distribution, marketing, and sale of various beverages across the United States. The company's operational scope encompasses two distinct segments: the manufacture and distribution of both non-alcoholic and alcoholic beverages, alongside the retail sale of beverages and groceries via online channels. This enterprise maintains a relatively small operational footprint with 21 employees, resulting in a total market capitalization of $1.17M and reported annual revenue of $1.02M. These valuation and revenue figures indicate that the company occupies a niche position within the broader beverage market, characterized by a small-cap classification that suggests limited scale relative to established peers but potentially offers specific exposure to regional or specialized product lines.
Financial Health
The company reported a revenue of $1.02M for the trailing twelve months, yet this figure stands in stark contrast to its net income of -$31,068,968, revealing a severe cost structure where expenses vastly exceed total revenue generation. Despite the massive net loss, the company generated positive free cash flow of $420,550, which indicates a degree of operational cash flexibility that allows for potential capital expenditures or debt servicing despite accounting losses. The margin analysis highlights significant operational inefficiencies, with a gross margin of -36.5%, an operating margin of -1496.0%, and a profit margin of 0.0%, all of which point to a business model currently unable to convert sales into profitability. On the balance sheet side, the company holds cash of $265,667 against total debt of $6.41M, creating a highly leveraged position evidenced by a debt-to-equity ratio of 94.59. This disparity between cash and debt suggests the company is carrying substantial obligations relative to its liquid assets. Liquidity is further constrained by a current ratio of 0.13, which indicates that the company possesses less than one-third of the current assets required to cover its current liabilities without raising external capital. Return metrics reflect the financial distress, with a return on assets of -62.1% and a return on equity listed as N/A due to the lack of positive equity returns. These negative return metrics reveal that management has been ineffective at generating value for shareholders, as the company destroys value relative to both its asset base and equity capital.
Valuation Assessment
Valuation metrics for Splash Beverage Group, Inc. present a complex picture, with a trailing P/E ratio of N/A and a forward P/E of -1.75, implying that the market is pricing in an expectation of negative earnings continuation rather than immediate profitability. The price-to-book ratio stands at 0.14, indicating that the stock is trading at a significant discount to its book value, a situation often found in distressed assets or companies with substantial intangible assets not captured on the balance sheet. Alternative valuation measures such as the price-to-sales ratio of 1.14 and an EV/EBITDA of -0.47 further suggest that traditional multiple expansion models are not applicable, as the negative earnings multiple reflects the company's inability to generate operating profit. The stock's price action is defined by a 52-week high of $9.79 and a 52-week low of $0.33, meaning the current trading price sits significantly below the annual peak, reflecting a prolonged period of price compression. The company exhibits a beta of -1.20, which is an anomalous metric suggesting that the stock's price volatility moves inversely to the broader market, implying a unique risk profile that does not correlate with standard market movements.
Growth & Income
Growth metrics for the company are unavailable, with revenue growth year-over-year listed as N/A and earnings growth year-over-year also listed as N/A, preventing a direct comparison of earnings growth speed relative to revenue expansion. As the company does not pay a dividend, the dividend yield is N/A and the payout ratio is 0.0%, indicating that the firm retains all earnings, albeit negative ones, and reinvests minimal capital back into the business rather than distributing income to shareholders. This absence of dividend payments confirms that the company is not currently in a stage where it can support shareholder income through distributions, focusing instead on operational survival or theoretical growth initiatives. Consequently, the overall growth and income profile is defined by a lack of historical earnings expansion and a complete absence of current income generation, leaving investors with only capital appreciation potential as a theoretical return mechanism.