NasdaqCM:REED

Stock Analysis Report

Executive Summary

Reed's, Inc. develops, manufactures, and sells natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America.

Snowflake

Fundamentals

Imperfect balance sheet with concerning outlook.

Risks

  • Reed's has significant price volatility in the past 3 months.

Share Price & News

How has Reed's's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.0%

NasdaqCM:REED

2.6%

US Beverage

2.9%

US Market


1 Year Return

-17.0%

NasdaqCM:REED

12.2%

US Beverage

0.2%

US Market

REED underperformed the Beverage industry which returned 11.3% over the past year.

REED underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

REEDIndustryMarket
7 Day-8.0%2.6%2.9%
30 Day-40.7%2.3%-2.3%
90 Day-46.9%2.9%3.1%
1 Year-17.0%-17.0%15.2%12.2%2.4%0.2%
3 Year-32.3%-32.3%28.3%18.3%41.7%32.4%
5 Year-68.6%-68.6%56.9%37.0%55.1%37.9%

Price Volatility Vs. Market

How volatile is Reed's's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reed's undervalued based on future cash flows and its price relative to the stock market?

34.71x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Reed's to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Reed's to establish if it is available at substantial discount.


Price Based on Earnings

Reed's is loss making, we can't compare its value to the US Beverage industry average.

Reed's is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Reed's, we can't assess if its growth is good value.


Price Based on Value of Assets

Reed's is overvalued based on assets compared to the US Beverage industry average.


Next Steps

Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Reed's's revenue is expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).

Reed's is not considered high growth as it is expected to be loss making for the next 1-3 years.

Reed's's revenue growth is expected to exceed the United States of America market average.

Unable to compare Reed's's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Reed's's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Reed's will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Reed's performed over the past 5 years?

-46.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Reed's does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Reed's's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Reed's's 1-year growth to the US Beverage industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Reed's has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Reed's has efficiently used its assets last year compared to the US Beverage industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Reed's improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Reed's's financial position?


Financial Position Analysis

Reed's is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Reed's's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Reed's's level of debt (439.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (112.2% vs 439.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


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.

Reed's has less than a year of cash runway based on current free cash flow.

Reed's has less than a year of cash runway if free cash flow continues to grow at historical rates of 57.4% each year.


Next Steps

Dividend

What is Reed's's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Reed's's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Reed's's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Reed's has not reported any payouts.

Unable to verify if Reed's's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Reed's has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Reed's's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Val Stalowir (56yo)

2.2yrs

Tenure

US$3,298,270

Compensation

Mr. Valentin M. Stalowir, also known as Val, has been the Chief Executive Officer of Reed's, Inc. since June 28, 2017. Previously, Mr. Stalowir was a Partner at Apta Capital LLC. Mr. Stalowir has over 25 y ...


CEO Compensation Analysis

Val's remuneration is higher than average for companies of similar size in United States of America.

Val's compensation has increased whilst company is loss making.


Management Age and Tenure

2.2yrs

Average Tenure

58.5yo

Average Age

The tenure for the Reed's management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

61yo

Average Age

The average tenure for the Reed's board of directors is less than 3 years, this suggests a new board.


Insider Trading

Reed's individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$103,80916 Aug 19
John Bello
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares46,240
Max PriceUS$2.29
SellUS$3,82925 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares1,178.5
Max PriceUS$3.26
SellUS$3,82925 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,178.5
Max PriceUS$3.26
SellUS$14,46323 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares4,438
Max PriceUS$3.32
SellUS$14,46323 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares4,438
Max PriceUS$3.32
SellUS$8,46818 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,521.5
Max PriceUS$3.36
SellUS$8,45818 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,521.5
Max PriceUS$3.36
SellUS$12,17416 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares3,652.5
Max PriceUS$3.36
SellUS$12,17416 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares3,652.5
Max PriceUS$3.36
SellUS$22,03012 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares6,589
Max PriceUS$3.37
SellUS$22,03312 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares6,590
Max PriceUS$3.37
SellUS$47,12610 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares13,908
Max PriceUS$3.45
SellUS$47,12610 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares13,908
Max PriceUS$3.45
SellUS$7,97709 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,212
Max PriceUS$3.61
SellUS$7,97709 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,212
Max PriceUS$3.61
BuyUS$35,20005 Jun 19
John Bello
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares11,000
Max PriceUS$3.20
BuyUS$32,00004 Jun 19
Neal Cohane
EntityIndividual
Role
Head of Sales
Senior Vice President of Sales
Shares10,000
Max PriceUS$3.20
SellUS$1,917,66804 Jun 19
Raptor Holdco GP LLC
EntityCompany
Shares564,020
Max PriceUS$3.40
BuyUS$32,00003 Jun 19
James Bass
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$3.20
SellUS$306,56031 May 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares95,800
Max PriceUS$3.20
SellUS$306,56031 May 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares95,800
Max PriceUS$3.20
SellUS$301,96101 Mar 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares110,500
Max PriceUS$2.96
BuyUS$100,00003 Jan 19
John Bello
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares50,000
Max PriceUS$2.00
SellUS$350,00003 Jan 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares175,000
Max PriceUS$2.00
SellUS$350,00003 Jan 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares175,000
Max PriceUS$2.00
SellUS$6,09319 Dec 18
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,500
Max PriceUS$2.44
SellUS$6,09319 Dec 18
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,500
Max PriceUS$2.44
BuyUS$23,73113 Dec 18
John Bello
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$2.41
BuyUS$52,23510 Dec 18
John Bello
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares21,461
Max PriceUS$2.50

Ownership Breakdown


Management Team

  • Val Stalowir (56yo)

    CEO & Director

    • Tenure: 2.2yrs
    • Compensation: US$3.30m
  • Chris Reed (61yo)

    Founder

    • Tenure: 28.6yrs
    • Compensation: US$227.00k
  • Judy Reed (60yo)

    Corporate Secretary

    • Tenure: 22.8yrs
    • Compensation: US$4.06k
  • Neal Cohane (59yo)

    Senior Vice President of Sales

    • Tenure: 11.4yrs
    • Compensation: US$213.00k
  • Mark Costa

    Director of Operations

    • Tenure: 4.3yrs
  • Stefan Freeman (58yo)

    Chief Operating Officer

    • Tenure: 2.2yrs
    • Compensation: US$351.25k
  • Iris Snyder (44yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$171.92k
  • Philip Trotman

    Director of Marketing

    • Tenure: 1.1yrs
  • Beth Brown

    Director of Supply Chain and Procurement

    • Tenure: 1.1yrs
  • Lindsay Martin

    Vice President of Marketing

    • Tenure: 0.0yrs

Board Members

  • Lew Jaffe (62yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$259.54k
  • Jim Bass (66yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$179.54k
  • Val Stalowir (56yo)

    CEO & Director

    • Tenure: 2.2yrs
    • Compensation: US$3.30m
  • John Bello (72yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$502.88k
  • Chris Reed (61yo)

    Founder

    • Tenure: 28.6yrs
    • Compensation: US$227.00k
  • Scott Grossman (41yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$179.54k
  • Dan Doherty (55yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$50.00k
  • Louis Imbrogno

    Director

    • Tenure: 0.0yrs

Company Information

Reed's, Inc.'s company bio, 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
  • Market Cap: US$65.753m
  • Shares outstanding: 33.72m
  • Website: https://www.drinkreeds.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REEDNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2006

Biography

Reed's, Inc. develops, manufactures, and sells natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America. Its products in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:57
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.