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.

Rewards

Revenue is forecast to grow 13.24% per year

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Concerning outlook with weak fundamentals.

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

-1.8%

REED

0.09%

US Beverage

0.7%

US Market


1 Year Return

-67.1%

REED

11.2%

US Beverage

18.2%

US Market

Return vs Industry: REED underperformed the US Beverage industry which returned 11.2% over the past year.

Return vs Market: REED underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

REEDIndustryMarket
7 Day-1.8%0.09%0.7%
30 Day8.4%2.4%1.5%
90 Day-54.2%-0.6%5.0%
1 Year-67.1%-67.1%14.1%11.2%20.8%18.2%
3 Year-80.4%-80.4%36.9%26.2%45.2%35.8%
5 Year-87.0%-87.0%59.5%39.3%71.6%52.7%

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 3 analysts?

23.5%

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 (13.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: REED's revenue (13.2% 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?

-41.7%

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 -41.7% 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 (5.4%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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

Inventory Level: REED has a high level of physical assets or inventory.

Debt Coverage by Assets: REED has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 -58.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate REED's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate REED's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

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

3.0yrs

Average management tenure


CEO

John Bello (72yo)

0.3yrs

Tenure

US$502,877

Compensation

Mr. John J. Bello serves as the Managing Director of JoNa Ventures. Mr. Bello serves as Acting Chief Executive Officer and Director at Adina For Life, Inc. Mr. Bello was a Managing Partner, General Partner ...


Management Age and Tenure

3.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: REED's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: REED's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: REED insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,000,00029 Oct 19
John Bello
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & Interim CEO
Shares1,666,666
Max PriceUS$0.60
BuyUS$15,00029 Oct 19
Louis Imbrogno
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$0.60
BuyUS$25,00029 Oct 19
Iris Snyder
EntityIndividual
Shares41,666
Max PriceUS$0.60
BuyUS$10,00029 Oct 19
Lewis Jaffe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,666
Max PriceUS$0.60
BuyUS$15,00029 Oct 19
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$0.60
BuyUS$7,50029 Oct 19
Scott Grossman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,500
Max PriceUS$0.60
BuyUS$150,00029 Oct 19
Norman Snyder
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares250,000
Max PriceUS$0.60
BuyUS$4,57527 Aug 19
Scott Grossman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$1.83
BuyUS$103,80916 Aug 19
John Bello
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & Interim CEO
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
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares4,438
Max PriceUS$3.32
SellUS$14,46323 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares4,438
Max PriceUS$3.32
SellUS$8,45818 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,521.5
Max PriceUS$3.36
SellUS$8,46818 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,521.5
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$12,17416 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares3,652.5
Max PriceUS$3.36
SellUS$22,03312 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares6,590
Max PriceUS$3.37
SellUS$22,03012 Jul 19
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares6,589
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
Judy Reed
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,212
Max PriceUS$3.61
SellUS$7,97709 Jul 19
Christopher Reed
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares2,212
Max PriceUS$3.61
BuyUS$35,20005 Jun 19
John Bello
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & Interim CEO
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
Independent 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
Chief Executive Officer
Chairman of the Board & Interim CEO
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
BuyUS$23,73113 Dec 18
John Bello
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & Interim CEO
Shares10,000
Max PriceUS$2.41

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.1%.


Management Team

  • John Bello (72yo)

    Chairman of the Board & Interim CEO

    • Tenure: 0.3yrs
    • Compensation: US$502.88k
  • Chris Reed (61yo)

    Founder

    • Tenure: 28.9yrs
    • Compensation: US$227.00k
  • Judy Reed (60yo)

    Corporate Secretary

    • Tenure: 23.2yrs
    • Compensation: US$4.06k
  • Norm Snyder (58yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Neal Cohane (59yo)

    Senior Vice President of Sales

    • Tenure: 11.8yrs
    • Compensation: US$213.00k
  • Mark Costa

    Director of Operations

    • Tenure: 4.6yrs
  • Philip Trotman

    Director of Marketing

    • Tenure: 1.4yrs
  • Beth Brown

    Director of Supply Chain and Procurement

    • Tenure: 1.4yrs
  • Joann Tinnelly (50yo)

    VP & Corporate Controller

    • Tenure: 0yrs
  • Thomas Spisak

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Lew Jaffe (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$259.54k
  • Jim Bass (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$179.54k
  • John Bello (72yo)

    Chairman of the Board & Interim CEO

    • Tenure: 0.3yrs
    • Compensation: US$502.88k
  • Chris Reed (61yo)

    Founder

    • Tenure: 28.9yrs
    • Compensation: US$227.00k
  • Dan Doherty (55yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$50.00k
  • Scott Grossman (41yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$179.54k
  • Louis Imbrogno (75yo)

    Independent Director

    • Tenure: 0.3yrs

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$36.382m
  • Shares outstanding: 47.60m
  • 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 Analysis2019/12/10 00:00
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.