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 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

0.04%

REED

1.4%

US Beverage

-2.8%

US Market


1 Year Return

-85.1%

REED

-6.4%

US Beverage

-15.9%

US Market

Return vs Industry: REED underperformed the US Beverage industry which returned -6.4% over the past year.

Return vs Market: REED underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

REEDIndustryMarket
7 Day0.04%1.4%-2.8%
30 Day-44.7%-16.9%-18.8%
90 Day-49.4%-16.7%-24.0%
1 Year-85.1%-85.1%-4.0%-6.4%-14.2%-15.9%
3 Year-89.2%-89.2%10.8%2.1%9.9%2.8%
5 Year-91.1%-91.1%28.6%12.6%27.2%13.3%

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?

21.25x

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 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 (21.3x) compared to the US Beverage industry average (2.6x).


Next Steps

Future Growth

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

43.6%

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 (10.6% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: REED's revenue (10.6% 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?

-37.4%

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 -37.4% 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 (9.2%).


Return on Equity

High ROE: REED has a negative Return on Equity (-1404.71%), 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 ($14.3M) exceed its short term liabilities ($9.4M).

Long Term Liabilities: REED's short term assets ($14.3M) exceed its long term liabilities ($5.4M).


Debt to Equity History and Analysis

Debt Level: REED's debt to equity ratio (685.8%) is considered high.

Reducing Debt: REED's debt to equity ratio has increased from 142.4% to 685.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: REED's debt is covered by short term assets (assets are 1.8x 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.

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 -48.5% each year


Next Steps

Dividend

What is Reed's'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 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

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

1.8yrs

Average management tenure


CEO

Norm Snyder (57yo)

0.083

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 ($USD122.39K) is below average for companies of similar size in the US market ($USD626.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.083yrUS$122.39k0.84% $188.1k
Christopher Reed
Founder29.25yrsUS$141.88k1.55% $347.0k
Thomas Spisak
Chief Financial Officer0.33yrUS$250.00k0.021% $4.7k
Neal Cohane
Senior Vice President of Sales12.08yrsUS$213.00k0.42% $94.6k
Joann Tinnelly
VP & Corporate Controller0.33yrno data0.14% $31.0k
Philip Trotman
Director of Marketing1.75yrsno datano data
Mark Reed
Consultant12.08yrsUS$150.19kno data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: REED's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Norman Snyder
CEO & Director0.083yrUS$122.39k0.84% $188.1k
Christopher Reed
Founder29.25yrsUS$141.88k1.55% $347.0k
Lewis Jaffe
Independent Director3.5yrsUS$80.00k0.35% $78.6k
James Bass
Independent Director2.58yrsUS$80.00k0.25% $57.0k
John Bello
Independent Chairman of the Board3.42yrsUS$231.37k6.63% $1.5m
Daniel Doherty
Director2.25yrsUS$50.00k0.042% $9.4k
Scott Grossman
Independent Director2.58yrsUS$80.00k0.20% $43.8k
Louis Imbrogno
Independent Director0.67yrUS$23.76k0.061% $13.7k

2.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: REED's board of directors are not considered experienced ( 2.6 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: REED 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 diluted in the past year, with total shares outstanding growing by 38.3%.


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$22.379m
  • 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 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 Analysis2020/04/06 02:56
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.