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.
Imperfect balance sheet with concerning outlook.
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.
7 Day Return
1 Year Return
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.
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
3 months ago | Simply Wall StAnalysts Have Been Trimming Their Reed's, Inc. Price Target After Its Latest Report
4 months ago | Simply Wall StDo Insiders Own Shares In Reed's, Inc. (NASDAQ:REED)?
5 months ago | Simply Wall StDoes Reed's, Inc. (NASDAQ:REED) Have A High Beta?
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.
- Take a look at our analysis of REED’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore potentially undervalued companies in the Food, Beverage & Tobacco industry.
How is Reed's forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
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
How has Reed's performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Norm Snyder (58yo)
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.
|CEO & Director||0.33yr||US$122.39k||0.85% $461.3k|
|Chief Financial Officer||0.58yr||US$250.00k||0.11% $57.7k|
|Vice President of Sales||12.33yrs||US$213.00k||0.32% $174.1k|
|Vice President of Marketing||2.5yrs||no data||no data|
|VP & Corporate Controller||0.58yr||no data||0.10% $57.1k|
|Director of Marketing||2yrs||no data||no data|
Experienced Management: REED's management team is considered experienced (2.3 years average tenure).
|CEO & Director||0.33yr||US$122.39k||0.85% $461.3k|
|Independent Director||3.75yrs||US$80.00k||0.27% $144.5k|
|Independent Director||2.83yrs||US$80.00k||0.15% $83.3k|
|Independent Chairman of the Board||3.67yrs||US$231.37k||6.33% $3.4m|
|Independent Director||2.83yrs||US$80.00k||0.076% $41.6k|
|Independent Director||0.92yr||US$23.76k||0.12% $62.7k|
Experienced Board: REED's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 86.9%.
Reed's, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Reed's, Inc.
- 201 Merritt 7 Corporate Park
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|REED||NasdaqCM (Nasdaq Capital Market)||Yes||Common Stock||US||USD||Dec 2006|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/10 00:13|
|End of Day Share Price||2020/07/09 00:00|
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.