NasdaqCM:REED

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Imperfect balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: REED's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.8%

REED

-0.8%

US Beverage

1.3%

US Market


1 Year Return

-74.4%

REED

-6.8%

US Beverage

6.1%

US Market

Return vs Industry: REED underperformed the US Beverage industry which returned -5.5% over the past year.

Return vs Market: REED underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

REEDIndustryMarket
7 Day-9.8%-0.8%1.3%
30 Day-20.6%-4.5%-0.3%
90 Day92.2%-2.0%16.6%
1 Year-74.4%-74.4%-4.4%-6.8%8.4%6.1%
3 Year-47.6%-47.6%14.4%5.5%35.8%26.9%
5 Year-85.8%-85.8%38.1%20.8%62.7%44.7%

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 compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Reed's is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Reed's has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

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

43.2%

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 (11.7% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: REED's revenue (11.7% 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


Next Steps

Past Performance

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

-33.1%

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 -33.1% 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 (-0.9%).


Return on Equity

High ROE: REED's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Reed's's financial position?


Financial Position Analysis

Short Term Liabilities: REED has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: REED has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: REED has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: REED's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REED's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Norm Snyder (58yo)

0.33

Tenure

US$122,386

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD122.39K) is below average for companies of similar size in the US market ($USD610.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.33yrUS$122.39k0.85% $461.3k
Christopher Reed
Founder29.5yrsUS$141.88k1.17% $638.4k
Thomas Spisak
Chief Financial Officer0.58yrUS$250.00k0.11% $57.7k
Neal Cohane
Vice President of Sales12.33yrsUS$213.00k0.32% $174.1k
Lindsay Martin
Vice President of Marketing2.5yrsno datano data
Joann Tinnelly
VP & Corporate Controller0.58yrno data0.10% $57.1k
Philip Trotman
Director of Marketing2yrsno datano data
Mark Reed
Consultant12.33yrsUS$150.19kno data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: REED's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.33yrUS$122.39k0.85% $461.3k
Christopher Reed
Founder29.5yrsUS$141.88k1.17% $638.4k
Lewis Jaffe
Independent Director3.75yrsUS$80.00k0.27% $144.5k
James Bass
Independent Director2.83yrsUS$80.00k0.15% $83.3k
John Bello
Independent Chairman of the Board3.67yrsUS$231.37k6.33% $3.4m
Daniel Doherty
Director2.5yrsUS$50.00k0.032% $17.3k
Scott Grossman
Independent Director2.83yrsUS$80.00k0.076% $41.6k
Louis Imbrogno
Independent Director0.92yrUS$23.76k0.12% $62.7k

2.8yrs

Average Tenure

62.5yo

Average Age

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 substantially diluted in the past year, with total shares outstanding growing by 86.9%.


Top Shareholders

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$54.433m
  • Shares outstanding: 62.93m
  • 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 include Reed’s craft ginger beers; Virgil’s craft sodas; and Virgil’s zero sugar sodas. 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 directly. The company was formerly known as Original Beverage Corporation and changed its name to Reed's, Inc. in 2001. Reed's, Inc. was founded in 1987 and is headquartered in Norwalk, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 00:13
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.