company background image
REED

Reed's NasdaqCM:REED Stock Report

Last Price

US$0.16

Market Cap

US$18.3m

7D

-4.4%

1Y

-84.1%

Updated

29 Jun, 2022

Data

Company Financials +
REED fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

REED Stock Overview

Reed's, Inc. engages in the manufacture and distribution of natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America.

Reed's Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Reed's
Historical stock prices
Current Share PriceUS$0.16
52 Week HighUS$1.06
52 Week LowUS$0.14
Beta1.37
1 Month Change-18.70%
3 Month Change-45.89%
1 Year Change-84.06%
3 Year Change-95.45%
5 Year Change-93.62%
Change since IPO-95.78%

Recent News & Updates

Shareholder Returns

REEDUS BeverageUS Market
7D-4.4%2.8%1.6%
1Y-84.1%8.5%-20.8%

Return vs Industry: REED underperformed the US Beverage industry which returned 8% over the past year.

Return vs Market: REED underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is REED's price volatile compared to industry and market?
REED volatility
REED Average Weekly Movement10.9%
Beverage Industry Average Movement7.8%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: REED is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: REED's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198731Norm Snyderhttps://drinkreeds.com

Reed's, Inc. engages in the manufacture and distribution of natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America. It offers Reed’s craft ginger beers; Reed’s real ginger ales; Reed’s ready to drink products; Virgil’s handcrafted sodas; ginger candy; and other ginger beverages under the Reed’s brand. Reed's, Inc. sells its products to natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, liquor stores, industrial cafeterias, and on-premise bars and restaurants through distributors and independent distributor partners, as well as direct to store distribution.

Reed's Fundamentals Summary

How do Reed's's earnings and revenue compare to its market cap?
REED fundamental statistics
Market CapUS$18.32m
Earnings (TTM)-US$16.88m
Revenue (TTM)US$49.64m

0.4x

P/S Ratio

-1.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REED income statement (TTM)
RevenueUS$49.64m
Cost of RevenueUS$36.96m
Gross ProfitUS$12.68m
Other ExpensesUS$29.56m
Earnings-US$16.88m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.15
Gross Margin25.54%
Net Profit Margin-34.01%
Debt/Equity Ratio161.9%

How did REED perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is REED undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REED?

Other financial metrics that can be useful for relative valuation.

REED key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA-1.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does REED's PS Ratio compare to its peers?

REED PS Ratio vs Peers
The above table shows the PS ratio for REED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6x
RSHN RushNet
2.2xn/aUS$13.1m
JSDA Jones Soda
1.7xn/aUS$27.5m
WTER Alkaline Water
0.8x32.5%US$47.7m
TNYB.F Tinley Beverage
19.3xn/aUS$12.5m
REED Reed's
0.4x18.8%US$18.3m

Price-To-Sales vs Peers: REED is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (6x).


Price to Earnings Ratio vs Industry

How does REED's PE Ratio compare vs other companies in the US Beverage Industry?

Price-To-Sales vs Industry: REED is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Beverage industry average (2.3x)


Price to Sales Ratio vs Fair Ratio

What is REED's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REED PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: REED is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).


Share Price vs Fair Value

What is the Fair Price of REED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REED ($0.16) is trading below our estimate of fair value ($3.37)

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


Price to Earnings Growth Ratio

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


Discover undervalued companies

Future Growth

How is Reed's forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


62.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: REED's revenue (18.8% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: REED's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has Reed's 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


-4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REED is currently unprofitable.

Growing Profit Margin: REED is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REED is unprofitable, and losses have increased over the past 5 years at a rate of 4.6% per year.

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

Earnings vs Industry: REED is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (8.9%).


Return on Equity

High ROE: REED has a negative Return on Equity (-365.58%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Reed's's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: REED's short term assets ($28.8M) exceed its short term liabilities ($25.4M).

Long Term Liabilities: REED's short term assets ($28.8M) exceed its long term liabilities ($350.0K).


Debt to Equity History and Analysis

Debt Level: REED's net debt to equity ratio (159.3%) is considered high.

Reducing Debt: REED had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: REED has sufficient cash runway for 0 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: REED is forecast to have sufficient cash runway for 0 months based on free cash flow estimates, but has since raised additional capital.


Discover healthy companies

Dividend

What is Reed's 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 REED's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate REED'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 REED's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REED'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 REED has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.2yrs

Average management tenure


CEO

Norm Snyder (60 yo)

2.25yrs

Tenure

US$372,842

Compensation

Mr. Norman E. Snyder, Jr., also known as Norm, serves as the Chief Executive Officer and Director at Reed's, Inc. since March 01, 2020 and served as its Chief Operating Officer since September 30, 2019 un...


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD372.84K) is below average for companies of similar size in the US market ($USD759.63K).

Compensation vs Earnings: Norm's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: REED's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: REED's board of directors are not considered experienced ( 2.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.4%.


Top Shareholders

Company Information

Reed's, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Reed's, Inc.
  • Ticker: REED
  • Exchange: NasdaqCM
  • Founded: 1987
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$18.317m
  • Shares outstanding: 112.65m
  • Website: https://drinkreeds.com

Number of Employees


Location

  • Reed's, Inc.
  • 201 Merritt 7 Corporate Park
  • Norwalk
  • Connecticut
  • 6851
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.