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REED'S INC (REED) Stock Fundamental Analysis

NASDAQ:REED - Nasdaq - US7583383051 - Common Stock - Currency: USD

3.24  -0.19 (-5.54%)

After market: 3.37 +0.13 (+4.01%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to REED. REED was compared to 30 industry peers in the Beverages industry. REED may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, REED is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year REED has reported negative net income.
REED had a negative operating cash flow in the past year.
REED Yearly Net Income VS EBIT VS OCF VS FCFREED Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 -5M -10M -15M

1.2 Ratios

The profitability ratios for REED are negative, so there is not much use analyzing them.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
REED Yearly ROA, ROE, ROICREED Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 -1K -2K -3K

1.3 Margins

Looking at the Gross Margin, with a value of 22.19%, REED is doing worse than 85.29% of the companies in the same industry.
REED's Gross Margin has improved in the last couple of years.
REED does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 22.19%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.74%
GM growth 5Y4.73%
REED Yearly Profit, Operating, Gross MarginsREED Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 -40

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1

2. Health

2.1 Basic Checks

REED does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for REED has been reduced compared to 1 year ago.
The debt/assets ratio for REED is higher compared to a year ago.
REED Yearly Shares OutstandingREED Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
REED Yearly Total Debt VS Total AssetsREED Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 5M 10M 15M 20M 25M

2.2 Solvency

Based on the Altman-Z score of -5.11, we must say that REED is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -5.11, REED is doing worse than 73.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -5.11
ROIC/WACCN/A
WACC11.25%
REED Yearly LT Debt VS Equity VS FCFREED Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 5M -5M 10M -10M -15M

2.3 Liquidity

A Current Ratio of 1.14 indicates that REED should not have too much problems paying its short term obligations.
The Current ratio of REED (1.14) is worse than 73.53% of its industry peers.
A Quick Ratio of 0.35 indicates that REED may have some problems paying its short term obligations.
REED has a Quick ratio of 0.35. This is amonst the worse of the industry: REED underperforms 88.24% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 0.35
REED Yearly Current Assets VS Current LiabilitesREED Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 5M 10M 15M 20M

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5

3. Growth

3.1 Past

REED shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -3993.75%.
Looking at the last year, REED shows a small growth in Revenue. The Revenue has grown by 6.90% in the last year.
The Revenue has been growing slightly by 3.15% on average over the past years.
EPS 1Y (TTM)-3993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3650%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y9.19%
Revenue growth 5Y3.15%
Sales Q2Q%-9.76%

3.2 Future

The Earnings Per Share is expected to grow by 23.94% on average over the next years. This is a very strong growth
REED is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.78% yearly.
EPS Next Y10%
EPS Next 2Y23.29%
EPS Next 3Y20.74%
EPS Next 5Y23.94%
Revenue Next Year8.83%
Revenue Next 2Y10.89%
Revenue Next 3Y11.26%
Revenue Next 5Y22.78%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
REED Yearly Revenue VS EstimatesREED Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
REED Yearly EPS VS EstimatesREED Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -0.2 -0.4 -0.6 -0.8

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for REED. In the last year negative earnings were reported.
Also next year REED is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
REED Price Earnings VS Forward Price EarningsREED Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
REED Per share dataREED EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15 20

4.3 Compensation for Growth

REED's earnings are expected to grow with 20.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.29%
EPS Next 3Y20.74%

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0

5. Dividend

5.1 Amount

No dividends for REED!.
Industry RankSector Rank
Dividend Yield N/A

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REED'S INC

NASDAQ:REED (2/15/2023, 8:19:32 PM)

After market: 3.37 +0.13 (+4.01%)

3.24

-0.19 (-5.54%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)11-10 2022-11-10/amc
Earnings (Next)03-29 2023-03-29/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners426.61%
Ins Owner Change0%
Market Cap8.17M
Analysts80
Price Target0.77 (-76.23%)
Short Float %0.19%
Short Ratio0
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.1%
Min EPS beat(2)-22.55%
Max EPS beat(2)-17.65%
EPS beat(4)0
Avg EPS beat(4)-14.52%
Min EPS beat(4)-22.55%
Max EPS beat(4)-8.93%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-18.11%
Min Revenue beat(2)-29.87%
Max Revenue beat(2)-6.35%
Revenue beat(4)0
Avg Revenue beat(4)-12.2%
Min Revenue beat(4)-29.87%
Max Revenue beat(4)-3.79%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-4900%
EPS NQ rev (3m)-4900%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.16%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.16
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-6.55
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)-7.55
FCFYN/A
OCF(TTM)-7.45
OCFYN/A
SpS20.15
BVpS-1.36
TBVpS-1.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 22.19%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.74%
GM growth 5Y4.73%
F-Score0
Asset Turnover1.68
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 550%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.14
Quick Ratio 0.35
Altman-Z -5.11
F-Score0
WACC11.25%
ROIC/WACCN/A
Cap/Depr(3y)298.21%
Cap/Depr(5y)243.94%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3650%
EPS Next Y10%
EPS Next 2Y23.29%
EPS Next 3Y20.74%
EPS Next 5Y23.94%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y9.19%
Revenue growth 5Y3.15%
Sales Q2Q%-9.76%
Revenue Next Year8.83%
Revenue Next 2Y10.89%
Revenue Next 3Y11.26%
Revenue Next 5Y22.78%
EBIT growth 1Y-8.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.64%
EBIT Next 3Y34.59%
EBIT Next 5Y29.88%
FCF growth 1Y-81.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.44%
OCF growth 3YN/A
OCF growth 5YN/A