Bedrijfsoverzicht
Reborn Coffee, Inc. is an operator and franchisor of retail locations, kiosks, and cafes that specialize in serving specialty-roasted coffee, tea, and other beverages alongside various food items across markets in California, China, and Europe. The company operates within the Consumer Cyclical sector, specifically under the Restaurants industry, positioning it as a business sensitive to discretionary consumer spending and broader economic cycles. As of the latest available data, the entity holds a market capitalization of $19.27M and generates an annual revenue of $6.66M, while the specific number of employees is not disclosed in the current financial records. These valuation and revenue figures indicate that Reborn Coffee functions as a small-cap enterprise with a relatively modest market footprint compared to large-scale multinational restaurant chains, suggesting a niche presence that relies heavily on operational efficiency and geographic expansion in its specific markets.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $6.66M, yet this top-line figure is accompanied by a significant net loss of $-12,759,933, revealing a challenging cost structure where expenses and losses substantially outweigh operational earnings. Despite the accounting losses, the firm reported an EBITDA of $-10,424,483, indicating that operating costs still exceed gross revenues before interest and taxes, which is typical for early-stage or highly leveraged retail concepts. Uniquely, Reborn Coffee generated positive free cash flow of $1.49M, which suggests that the business retains sufficient cash from operations to cover capital expenditures and potentially fund growth initiatives despite the reported net income deficit. The financial margins reflect this structural pressure, with a gross margin of 55.5% indicating strong pricing power or efficient supply chain management for coffee products, contrasted sharply by an operating margin of -224.7% and a profit margin of -191.5% that highlight severe inefficiencies in overhead costs or high interest burdens. On the balance sheet, the company holds $44,045 in cash against a total debt load of $4.35M, creating a significant liquidity gap where liabilities far exceed liquid assets. The current ratio stands at 0.08, a metric that signals severe short-term liquidity constraints and an inability to cover immediate current liabilities with current assets, raising concerns about solvency if cash inflows do not increase rapidly. Furthermore, Return on Equity is listed as N/A due to the negative equity position, while Return on Assets is -85.6%, metrics that collectively indicate that management is currently unable to generate positive returns on the capital deployed or assets owned by the firm.
Waarderingsbeoordeling
Trailing twelve-month P/E Ratio and Forward P/E are both listed as N/A, a common characteristic for companies reporting net losses where traditional earnings-based valuation multiples cannot be calculated. The price-to-book ratio is recorded at -4.54, a negative figure that typically indicates the market values the company at less than its book value, often reflecting investor skepticism regarding asset quality or the realization of those assets. The price-to-sales ratio stands at 2.89, suggesting that the market is willing to pay nearly three times the company's annual revenue, which may imply high growth expectations or a premium placed on the brand despite current profitability issues. Additionally, the EV/EBITDA multiple is -1.92, which further underscores the leverage and earnings challenges, as the negative multiple implies that enterprise value is less than the absolute value of EBITDA due to the net loss position. Regarding trading range, the 52-week high is $3.75 and the 52-week low is $1.36, placing the stock in a volatile trading band where the current price reflects market sentiment fluctuating between these established bounds. The beta value of 1.92 indicates that the stock price is significantly more volatile than the broader market, moving approximately 92% more than the market index in either direction, which increases the risk profile for risk-averse investors seeking stability.
Growth & Income
Reborn Coffee demonstrated a revenue growth rate of 7.8% year-over-year, while earnings growth is listed as N/A due to the company's continued net losses, implying that top-line expansion is occurring without a corresponding improvement in bottom-line profitability yet. Since the company does not pay dividends, the dividend yield is N/A and the payout ratio is 0.0%, meaning the firm reinvests all available cash flow, including its $1.49M in free cash flow, into business operations, debt reduction, or expansion rather than distributing income to shareholders. This reinvestment strategy is standard for growth-oriented firms but carries risk if the capital allocation does not lead to sustainable profitability within a reasonable timeframe. The overall growth and income profile presents a dichotomy of modest revenue expansion and significant income challenges, with no current income distribution mechanism for shareholders to rely upon, requiring investors to bank on future operational turnaround to realize capital appreciation.