NasdaqCM:REED

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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. More Details


Snowflake Analysis

Concerning outlook with worrying balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: REED's weekly volatility has decreased from 16% to 10% over the past year.


Market Performance


7 Day Return

16.9%

REED

0.05%

US Beverage

0.6%

US Market


1 Year Return

-11.4%

REED

7.0%

US Beverage

22.7%

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 21% over the past year.


Shareholder returns

REEDIndustryMarket
7 Day16.9%0.05%0.6%
30 Day-23.3%11.3%13.1%
90 Day-28.1%2.8%4.5%
1 Year-11.4%-11.4%9.9%7.0%25.5%22.7%
3 Year-60.6%-60.6%27.0%17.5%49.0%39.1%
5 Year-87.5%-87.5%52.5%33.9%98.3%76.5%

Long-Term 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?

93.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate REED's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate REED's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REED is overvalued based on its PB Ratio (93.6x) compared to the US Beverage industry average (5.4x).


Next Steps

Future Growth

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

28.7%

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 (15.3% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: REED's revenue (15.3% 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?

-22.5%

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 22.5% 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 (16.3%).


Return on Equity

High ROE: REED has a negative Return on Equity (-1925.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Reed's's financial position?


Financial Position Analysis

Short Term Liabilities: REED's short term assets ($16.1M) do not cover its short term liabilities ($16.3M).

Long Term Liabilities: REED's short term assets ($16.1M) exceed its long term liabilities ($899.0K).


Debt to Equity History and Analysis

Debt Level: REED's debt to equity ratio (1822.6%) is considered high.

Reducing Debt: REED's debt to equity ratio has increased from 904.4% to 1822.6% 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: REED has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: REED has less than a year of cash runway if free cash flow continues to reduce at historical rates of 40.4% each year


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 (59 yo)

0.67

Tenure

US$301,714

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 ($USD301.71K) is below average for companies of similar size in the US market ($USD561.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.67yrUS$301.71k0.65%
$ 346.9k
Christopher Reed
Founder29.83yrsUS$141.88k0.90%
$ 480.0k
Thomas Spisak
CFO & Secretary0.92yrUS$250.00k0.081%
$ 43.4k
Neal Cohane
Chief Sales Officer12.67yrsUS$213.00k0.24%
$ 130.9k
Richard Hubli
Vice President of Operations0.17yrno datano data
Lindsay Martin
Vice President of Marketing2.83yrsno datano data
Joann Tinnelly
VP & Corporate Controller0.92yrno data0.080%
$ 42.9k
Philip Trotman
Director of Marketing2.33yrsno datano data
Mark Reed
Consultant12.67yrsUS$150.19kno data

2.3yrs

Average Tenure

59yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.67yrUS$301.71k0.65%
$ 346.9k
Christopher Reed
Founder29.83yrsUS$141.88k0.90%
$ 480.0k
Lewis Jaffe
Independent Director4.08yrsUS$80.00k0.24%
$ 128.2k
James Bass
Independent Director3.17yrsUS$80.00k0.20%
$ 109.5k
John Bello
Independent Chairman of the Board4yrsUS$231.37k5.14%
$ 2.7m
Daniel Doherty
Director2.83yrsUS$50.00k0.044%
$ 23.3k
Scott Grossman
Independent Director3.17yrsUS$80.00k0.13%
$ 70.8k
Louis Imbrogno
Independent Director1.25yrsUS$23.76k0.071%
$ 37.9k

3.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: REED's board of directors are considered experienced (3.2 years average tenure).


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 72.6%.


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$53.438m
  • Shares outstanding: 82.16m
  • 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 Analysis2020/12/01 23:09
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.