Reed'S, Inc. (NYSE: REED)

Sector: Consumer Defensive Industry: Beverages - Non-Alcoholic CIK: 0001140215
Market Cap 16.59 Mn
P/B 6.02
P/E -1.03
P/S 0.46
ROIC (Qtr) -121.87
Div Yield % 0.00
Rev 1y % (Qtr) 4.16
Total Debt (Qtr) 10.01 Mn
Debt/Equity (Qtr) 3.63
Add ratio to table...

About

Investment thesis

Bull case

  • Robust tangible asset base of 19.27M provides 11.26x coverage of working capital 1.71M, indicating strong operational backing.
  • Tangible assets of 19.27M provide robust 14.51x coverage of other current liabilities 1.33M, indicating strong asset backing.
  • Strong cash position of 4.14M provides 3.11x coverage of other current liabilities 1.33M, indicating excellent liquidity.
  • Cash position of 4.14M represents healthy 2.42x of working capital 1.71M, demonstrating strong operational liquidity.
  • Strong tangible asset base of 19.27M provides 29.65x coverage of intangibles 650000, indicating robust asset quality.

Bear case

  • The company's operating cash flow of (17.10M) shows concerning coverage of stock compensation expenses of 320000, with a -53.44 ratio indicating potential earnings quality issues.
  • Free cash flow of (17.37M) provides weak coverage of capital expenditures of 267000, with a -65.04 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (14.41M) show weak coverage of depreciation charges of 158000, with a -91.21 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (17.10M) barely covers operating expenses of 6.07M with a -2.82 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of (17.37M) represents just -5.38x of debt issuance 3.23M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 1.23 3.00
EV to Cash from Ops. EV/CFO -1.43 25.34
EV to Debt EV to Debt 2.45 82.79
EV to EBIT EV/EBIT -1.70 35.67
EV to EBITDA EV/EBITDA -1.62 24.62
EV to Free Cash Flow [EV/FCF] EV/FCF -1.41 40.15
EV to Market Cap EV to Market Cap 1.48 2.70
EV to Revenue EV/Rev 0.67 3.95
Price to Book Value [P/B] P/B 6.02 15.38
Price to Earnings [P/E] P/E -1.03 112.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -3,236.60 -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) -8.16 3.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -413.46 -59.79
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,251.63 125.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -6.02
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.21 -5.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -63.00 4.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.21 70.95
EBT Growth (1y) % EBT 1y % (Qtr) -3.50 3.85
EPS Growth (1y) % EPS 1y % (Qtr) 103.62 5.85
FCF Growth (1y) % FCF 1y % (Qtr) -598.03 19.77
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.51 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.82 1.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 0.25 0.76
Current Ratio Curr Ratio (Qtr) 1.11 1.78
Debt to Equity Ratio Debt/Equity (Qtr) 3.63 1.22
Interest Cover Ratio Int Coverage (Qtr) -8.16 3.00
Times Interest Earned Times Interest Earned (Qtr) -8.16 3.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -39.20 9.71
EBIT Margin % EBIT Margin % (Qtr) -39.68 6.85
EBT Margin % EBT Margin % (Qtr) -44.55 5.02
Gross Margin % Gross Margin % (Qtr) 23.00 40.60
Net Profit Margin % Net Margin % (Qtr) -44.60 2.49