One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Reed's, Inc.
REED · ASE · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$1.78
52-week range
$0.33 - $7.41
Market cap
$52.12M
Balance sheet
Distressed
-13.67x Concerning
Net debt $7.64M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -14800.0% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -28.0% to -54.5% over 3 years.
What this company does
Reed's, Inc.
Reed's, Inc. makes and sells natural drinks like craft ginger beer and sodas under brands such as Reed's and Virgil's. Most of its money comes from selling these drinks to grocery stores, convenience stores, and restaurants, and the company is trying to grow its sales across different types of stores and online.
How the company got here
Reed's, Inc. began in 1989 when founder Christopher J. Reed started developing his first ginger beverage, inspired by research into ginger's health benefits. After two years of development, he launched the drink in Southern California. The company was officially incorporated in 1991 as Original Beverage Corporation and later acquired the Virgil's Root Beer brand in 1999. In 2001, it changed its name to Reed's, Inc. The company went public in 2006, meaning its shares could be bought by anyone. Over the years, Reed's has focused on streamlining its product line, emphasizing its core Reed's and Virgil's soft drink brands. The company also moved its headquarters to Norwalk, Connecticut, in 2018.
What it actually does
Reed's, Inc. is a beverage company that makes and sells natural, premium, and 'better-for-you' drinks. They are known for their ginger-based beverages and craft sodas. Their products are made with real ginger and other natural ingredients, avoiding genetically modified organisms (GMOs) and artificial preservatives. Reed's sells its drinks through various retail channels, including grocery stores, convenience stores, and mass merchants, as well as directly to consumers online.
Reed's® Brand
This is the company's main brand, specializing in ginger-based beverages. Reed's® is America's top-selling name in all-natural ginger drinks. Their product range includes ginger beers, ginger ales, ready-to-drink ginger mules, and ginger shots. They have also expanded into the zero-sugar market with their own special natural sweetener system. Reed's also offers ginger candies, such as crystallized ginger and ginger chews.
Virgil's® Brand
Virgil's is a line of craft sodas that have won awards, known for their strong flavors and natural ingredients. The brand offers a variety of sodas, including Root Beer, Vanilla Cream, and Black Cherry. Virgil's also has a significant presence in the zero-sugar category, with many of its flavors available in naturally sweetened versions that are suitable for ketogenic diets.
Flying Cauldron™ Brand
This brand offers a non-alcoholic butterscotch beer, recognized for its creamy vanilla and butterscotch flavors. Flying Cauldron™ is made with all-natural ingredients and is free from artificial flavors, sweeteners, preservatives, gluten, caffeine, and GMOs. It is marketed as a unique drink for those who appreciate fine beverages.
What management is betting on now
Reed's management is focused on a strategy of profitable growth and making operations more efficient. This includes strengthening the company's foundation through a reorganization and investing in its sales and marketing efforts. They are building a dedicated sales team to improve how they sell products, build stronger relationships with customers, and find new ways to increase sales (revenue). A key part of this strategy involves bringing in new marketing leaders with experience in building global brands to enhance the Reed's brand and expand its reach. They are also working to improve their supply chain (the process of getting raw materials and making products) and operations for better efficiency and to support growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.03M
FY2024 Q4
$-3.97M
FY2025 Q1
$-5.43M
FY2025 Q2
$-5.07M
FY2025 Q3
$-2.92M
FY2025 Q4
$-3.89M
Revenue
$7.49M
Net income
$-4.27M
Diluted EPS
-0.36
Operating cash flow
$-2.17M
Free cash flow
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Sources
Revenue
$7.14M
Net income
$-6.46M
Diluted EPS
-0.55
Operating cash flow
$-5.84M
Free cash flow
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Sources
Revenue
$7.48M
Net income
$-3.78M
Diluted EPS
-1.26
Operating cash flow
$-3.81M
Free cash flow
$-3.89M
Fetching…
Sources
Revenue
$7.03M
Net income
$-3.98M
Diluted EPS
-0.48
Operating cash flow
$-2.82M
Free cash flow
$-2.92M
Fetching…
Sources
Revenue
$9.52M
Net income
$-6.05M
Diluted EPS
-0.13
Operating cash flow
$-5.05M
Free cash flow
$-5.07M
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Sources
Revenue
$10.03M
Net income
$-2.03M
Diluted EPS
-0.04
Operating cash flow
$-5.36M
Free cash flow
$-5.43M
Fetching…
Sources
Revenue
$9.73M
Net income
$-4.12M
Diluted EPS
0.35
Operating cash flow
$-3.87M
Free cash flow
$-3.97M
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Sources
Revenue
$6.75M
Net income
$-4.15M
Diluted EPS
-0.82
Operating cash flow
$1.05M
Free cash flow
$1.03M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $1.78
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $7.6M. Interest coverage -13.7x.
Net debt
$7.64M
Interest coverage
-13.67x
Reed's, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
REED
BASELINE
Reed's, Inc.
Total debt $10.05M Interest coverage -13.67x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage -11.60x Neither company has much profit cushion over interest right now.
Total debt $8.36M Interest coverage -13.43x Neither company has much profit cushion over interest right now.
Total debt $58.77M Interest coverage 21.71x This peer still has a real interest-payment cushion, while REED does not.
Total debt $674.70M Interest coverage 9.57x This peer still has a real interest-payment cushion, while REED does not.
What you should know
The case for and against REED
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -14800.0% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -28.0% to -54.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-1.58x
P/B
2.32x
P/S
1.79x
EV/EBITDA
-1.44x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
24.9%
Operating margin
-54.5%
Net margin
-63.5%
ROE
-14,800.0%
ROA
-50.7%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
0.85x
Quick ratio
0.34x
Total debt
$10.05M
Total cash
$2.41M
Growth
How the business has been compounding
Revenue TTM
$29.14M
Revenue 5Y CAGR
-9.0%
EPS TTM
-1.54
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-14.64M
Free CF TTM
$-17.31M
FCF margin
-59.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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