Bedrijfsoverzicht
Reed's, Inc. is a manufacturer and distributor specializing in natural beverages, with a primary operational footprint spanning the United States, Canada, the United Kingdom, South Africa, the Caribbean, the European Union, and the Asia-Pacific region. The company focuses specifically on crafting products such as reed's craft ginger beer, reed's real ginger ales, reed's classic mules, and other related non-alcoholic beverage lines. It operates within the Consumer Defensive sector and is classified under the Beverages - Non-Alcoholic industry, positioning it as a supplier of staple goods that are generally less sensitive to economic downturns compared to discretionary spending. As of the latest data, the entity holds a market capitalization of $45.27M and reported trailing twelve-month revenue of $34.06M, while the specific count of employees is not disclosed in public filings. The relatively modest market cap combined with the sub-$35M revenue figure indicates that Reed's, Inc. operates as a small-cap entity rather than a large-scale industry leader, suggesting a niche market presence where growth is driven by brand expansion and distribution penetration in its specific geographic territories.
Financiële gezondheid
The company reported total revenue of $34.06M for the trailing twelve months, yet this revenue generated a net income loss of $15,847,000 and an EBITDA figure of $-12,975,000. The substantial gap between the positive revenue figure and the significant negative net income reveals a highly aggressive cost structure or high cost of goods sold that prevents the company from retaining earnings at a profitable level. This negative EBITDA further highlights that the core operating cash generation before interest and taxes is currently insufficient to cover the company's operational overhead and cost of sales. The free cash flow stands at $-10,700,875, indicating that the business is currently burning cash rather than generating liquidity, which limits its financial flexibility to fund organic growth or capital expenditures without external financing. Margin analysis shows a gross margin of 26.3%, which provides some indication of product pricing power, but this is heavily eroded by an operating margin of -20.0% and an even steeper profit margin of -46.5%. The balance sheet shows a cash position of $10.42M against total debt of $10.03M, resulting in a debt-to-equity ratio of 109.55, which classifies the company as highly leveraged relative to its equity base. Despite the high leverage, the current ratio of 1.60 suggests that the company maintains adequate short-term liquidity to meet its obligations as they come due over the next year. The return on equity is reported at -200.5% and the return on assets is -33.9%, metrics that reveal management is currently unable to generate positive returns on the capital invested or the assets employed by the business.
Waarderingsbeoordeling
Valuation metrics for Reed's, Inc. present a complex picture given the company's profitability status, with a trailing P/E ratio listed as N/A and a forward P/E of -3.39. The negative forward P/E implies that analysts or market participants are projecting a continuation of negative earnings, which typically prevents the use of traditional earnings-based valuation multiples for comparison with profitable peers. The price-to-book ratio sits at 5.00, indicating that the market values the company at five times its book value, a significant premium that may reflect the company's brand intangibles or potential for future recovery despite current losses. Alternative valuation multiples such as the price-to-sales ratio of 1.33 and the EV/EBITDA of -3.47 suggest that the market is pricing the stock based on revenue generation rather than profitability, while the negative EV/EBITDA reinforces the current inability of the business to cover its capital expenditures and working capital needs from operations. The stock price has historically ranged between a 52-week low of $1.75 and a 52-week high of $12.00, providing a wide trading range that reflects high volatility or uncertainty regarding the company's future earnings trajectory. The beta of 0.31 indicates that the stock price is significantly less volatile than the broader market, moving only about one-third as much as the market index in a given period.
Growth & Income
The company experienced a revenue growth year-over-year of -23.1%, while earnings growth is marked as N/A due to the absence of profitability in the reporting period. Since the company is currently unprofitable, earnings are not growing faster than revenue; rather, the decline in revenue is compounding the negative earnings situation, implying that the business is facing headwinds in its core ginger beverage categories. Regarding income, Reed's, Inc. does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company reinvests all available cash flow or raises capital to fund operations and growth initiatives. The overall growth and income profile is characterized by significant revenue contraction and a complete lack of cash return to shareholders, requiring external capital sources to sustain operations and navigate the current negative operating environment.