Flow Beverage (TSX:FLOW) - Share price, News & Analysis

FLOW fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

FLOW Stock Overview

Rewards

Trading at 83.5% below our estimate of its fair value

Revenue is forecast to grow 29.71% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$40M)

Flow Beverage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Flow Beverage
Historical stock prices
Current Share Price	CA$0.77
52 Week High	CA$8.46
52 Week Low	CA$0.64
Beta	0
1 Month Change	10.00%
3 Month Change	-35.83%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-86.42%

Shareholder Returns

	FLOW	CA Beverage	CA Market
7D	6.9%	1.1%	2.8%
1Y	n/a	-15.2%	5.9%

Return vs Industry: Insufficient data to determine how FLOW performed against the Canadian Beverage industry.

Return vs Market: Insufficient data to determine how FLOW performed against the Canadian Market.

Price Volatility

Is FLOW's price volatile compared to industry and market?
FLOW volatility
FLOW Average Weekly Movement	12.3%
Beverage Industry Average Movement	6.3%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.7%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: FLOW is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: FLOW's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2014	203	Maurizio Patarnello	https://flowhydration.com

Flow Beverage Corp., a health and wellness focused beverage company, produces and distributes original, flavored, unflavored, and collagen-infused alkaline spring water in the United States and Canada. The company’s spring water available in natural flavours, such as blackberry+hibiscus, grapefruit+elderflower, strawberry+rose, watermelon+lime, cucumber+mint, lemon+ginger, watermelon, grapefruit, cucumber, peach+blueberry, blood orange, meyer lemon, pomegranate, elderberry, citrus, and cherry. It distributes its products under the Flow brand name through direct sales, broker/distributors, direct store delivery, and direct-to-consumer/e-commerce channels.

Flow Beverage Fundamentals Summary

How do Flow Beverage's earnings and revenue compare to its market cap?
FLOW fundamental statistics
Market Cap	CA$40.48m
Earnings (TTM)	-CA$59.59m
Revenue (TTM)	CA$45.56m

0.9x

P/S Ratio

-0.7x

P/E Ratio

Is FLOW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLOW income statement (TTM)
Revenue	CA$45.56m
Cost of Revenue	CA$33.73m
Gross Profit	CA$11.84m
Other Expenses	CA$71.42m
Earnings	-CA$59.59m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.10
Gross Margin	25.98%
Net Profit Margin	-130.78%
Debt/Equity Ratio	37.6%

How did FLOW perform over the long term?

See historical performance and comparison

Valuation

Is Flow Beverage undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FLOW (CA$0.77) is trading below our estimate of fair value (CA$4.67)

Significantly Below Fair Value: FLOW is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: FLOW is unprofitable, so we can't compare its PE Ratio to the North American Beverage industry average.

PE vs Market: FLOW is unprofitable, so we can't compare its PE Ratio to the Canadian market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLOW's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: FLOW is good value based on its PB Ratio (0.7x) compared to the CA Beverage industry average (1.1x).

Future Growth

How is Flow Beverage forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

38.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLOW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FLOW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FLOW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FLOW's revenue (29.7% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: FLOW's revenue (29.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FLOW's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Flow Beverage performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLOW is currently unprofitable.

Growing Profit Margin: FLOW is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: FLOW is unprofitable, and losses have increased over the past 5 years at a rate of 22% per year.

Accelerating Growth: Unable to compare FLOW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLOW is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (16%).

Return on Equity

High ROE: FLOW has a negative Return on Equity (-94.41%), as it is currently unprofitable.

Financial Health

How is Flow Beverage's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: FLOW's short term assets (CA$62.3M) exceed its short term liabilities (CA$33.3M).

Long Term Liabilities: FLOW's short term assets (CA$62.3M) exceed its long term liabilities (CA$25.6M).

Debt to Equity History and Analysis

Debt Level: FLOW has more cash than its total debt.

Reducing Debt: Insufficient data to determine if FLOW's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FLOW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FLOW has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of 13.7% each year.

Dividend

What is Flow Beverage current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FLOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FLOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLOW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLOW's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FLOW has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure

CEO

Maurizio Patarnello (55 yo)

1.25yrs

Tenure

CA$3,488,889

Compensation

Mr. Maurizio Patarnello has been Chief Executive Officer at Flow Beverage Corp. (formerly known as Flow Water Inc.) since February 1, 2021. He has been Deputy Executive Vice President at Nestlé S.A. since...

CEO Compensation Analysis

Compensation vs Market: Maurizio's total compensation ($USD2.72M) is above average for companies of similar size in the Canadian market ($USD170.43K).

Compensation vs Earnings: Insufficient data to compare Maurizio's compensation with company performance.

Leadership Team

Experienced Management: FLOW's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: FLOW's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: FLOW insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: FLOW only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/01/31
Annual Earnings	2021/10/31