National Beverage Corp (NASDAQ: FIZZ)

Sector: Consumer Defensive Industry: Beverages - Non-Alcoholic CIK: 0000069891
Market Cap 3.42 Bn
P/B 6.20
P/E 18.34
P/S 2.85
ROIC (Qtr) 30.37
Div Yield % 0.00
Rev 1y % (Qtr) -0.99
Total Debt (Qtr) 66.19 Mn
Debt/Equity (Qtr) 0.12
Add ratio to table...

About

National Beverage Corp., known as FIZZ, is a significant player in the beverage industry, specializing in the production, distribution, and sale of sparkling waters, juices, energy drinks, and carbonated soft drinks. The company's operations span various channels, including take-home, convenience, and food-service channels, demonstrating its versatility in catering to diverse consumer preferences. The company's revenue generation is primarily attributed to a range of products that cater to the active and health-conscious consumer. These include...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 191.41M provides robust 2.89x coverage of total debt 66.19M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 269.31M provide 17.92x coverage of short-term debt 15.03M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 191.41M provides strong 353.15x coverage of stock compensation 542000, indicating sustainable incentive practices.
  • Strong tangible asset base of 734.21M provides 11.09x coverage of total debt 66.19M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 156.84M exceeds capital expenditure of 34.57M by 4.54x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 191.41M barely covers its investment activities of (34.57M), with a coverage ratio of -5.54, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 191.41M is outpaced by equity issuance of (364000) (-525.84 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 734.21M provide limited backing for working capital of 376.75M, which is 1.95x, suggesting increased operational risk in market downturns.
  • Tax assets of 0 provide limited offset against tax liabilities of 24.99M, which is 0x, indicating potential future cash flow pressure from tax obligations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 209.91M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Beverages - Non-Alcoholic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KO Coca Cola Co 359.59 Bn 41.22 7.57 47.42 Bn
2 PEP Pepsico Inc 221.63 Bn 26.90 2.36 49.18 Bn
3 MNST Monster Beverage Corp 80.88 Bn 46.84 10.14 0.11 Bn
4 CCEP COCA-COLA EUROPACIFIC PARTNERS plc 48.53 Bn 20.84 1.97 12.58 Bn
5 COKE Coca-Cola Consolidated, Inc. 15.28 Bn 534.08 9.79 1.92 Bn
6 CELH Celsius Holdings, Inc. 10.33 Bn 399.18 4.86 0.86 Bn
7 KDP Keurig Dr Pepper Inc. 5.72 Bn 8.07 0.94 15.85 Bn
8 FIZZ National Beverage Corp 3.42 Bn 18.34 2.85 0.07 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.33 3.00
EV to Cash from Ops. EV/CFO 16.93 25.34
EV to Debt EV to Debt 48.95 82.79
EV to EBIT EV/EBIT 13.23 35.67
EV to EBITDA EV/EBITDA 11.86 24.62
EV to Free Cash Flow [EV/FCF] EV/FCF 20.66 40.15
EV to Market Cap EV to Market Cap 0.95 2.70
EV to Revenue EV/Rev 2.70 3.95
Price to Book Value [P/B] P/B 6.20 15.38
Price to Earnings [P/E] P/E 18.34 112.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -230.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -1.98
Dividend per Basic Share Div per Share (Qtr) 0.00 0.88
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.31
Interest Coverage Int. cover (Qtr) 0.00 3.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -22.90 -59.79
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 138.68 125.83
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -6.02
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.43 -5.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.69 4.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 1.53 70.95
EBT Growth (1y) % EBT 1y % (Qtr) 1.53 3.85
EPS Growth (1y) % EPS 1y % (Qtr) 0.50 5.85
FCF Growth (1y) % FCF 1y % (Qtr) -6.54 19.77
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.03 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.60 1.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 2.35 0.76
Current Ratio Curr Ratio (Qtr) 4.29 1.78
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 1.22
Interest Cover Ratio Int Coverage (Qtr) 0.00 3.00
Times Interest Earned Times Interest Earned (Qtr) 0.00 3.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.40 9.71
EBIT Margin % EBIT Margin % (Qtr) 20.41 6.85
EBT Margin % EBT Margin % (Qtr) 20.41 5.02
Gross Margin % Gross Margin % (Qtr) 37.20 40.60
Net Profit Margin % Net Margin % (Qtr) 15.60 2.49