Reed's (REED) AI Stock Analysis

• Market Cap: $48.60M
• Dividend Yield: N/A
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.70
• Revenue Growth: -11.03%
• EPS Growth: 49.65%
• Country: US
• Employees: 24
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.04
• Shares Outstanding: 48,597,054
• 10 Day Avg. Volume: 7,681
• 30 Day Avg. Volume: 6,994
• PEG Ratio: -0.21
• Price to Book (P/B): 9.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.72
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $2.00
• Price Target Upside: 127.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $1.00 ▲(13.64%Upside)

Reed's overall stock score reflects significant financial challenges, with ongoing losses and financial instability. The positive impact of recent corporate events and operational improvements is overshadowed by poor valuation and mixed technical indicators.

Reed's Business Overview & Revenue Model

Company Description

Reed's, Inc. engages in the manufacture and distribution of natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America. It offers Reed's craft ginger beers; Reed's real ginger ales; Reed's ready to drink products; Virgil's handcrafted sodas; ginger candy; and other ginger beverages under the Reed's brand. 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 direct to store distribution. It also exports its products to France, the United Kingdom, South Africa, the Caribbean, Canada, Spain, the Philippines, Israel, Australia, Asia, rest of Europe, and South America. 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.

How the Company Makes Money

Reed's, Inc. generates revenue primarily through the sale of its natural beverages, distributed across various retail channels including grocery stores, supermarkets, specialty food stores, and online platforms. The company's key revenue streams include its ginger-based beverages, such as Reed's Ginger Beer and Virgil's Sodas, which are sold across the United States and internationally. Reed's partners with distributors and retailers to expand its market reach and leverage its brand recognition. Additionally, the company focuses on innovation and product development to introduce new flavors and product lines, which contribute to its earnings by attracting new customers and retaining existing ones.

Reed's Financial Statement Overview

Summary

Reed's faces financial challenges with declining revenues and persistent losses despite some improvements in gross margin and liquidity. The balance sheet shows improved equity but high leverage risks, and cash flow management remains a concern.

Income Statement

Reed's shows a declining revenue trend with a 15.1% decrease from $44.71 million in 2023 to $37.95 million in the TTM (Trailing-Twelve-Months). Gross profit margin improved from 21.7% to 30% in the same period, but net profit margins remain negative due to persistent net losses, highlighting ongoing profitability challenges.

Balance Sheet

The company has improved its equity position from negative to positive, with stockholders' equity reaching $6.65 million in the TTM. However, the debt-to-equity ratio remains concerning, and the equity ratio is relatively low, indicating potential financial instability.

Cash Flow

Operating cash flow improved but remains negative, reflecting ongoing operational challenges. Free cash flow remains negative, although Reed's has reduced its net debt significantly, improving liquidity but still indicating cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.95M	44.71M	53.04M	49.60M	41.62M
Gross Profit	11.38M	9.71M	12.11M	13.60M	12.77M
EBITDA	-7.38M	-9.28M	-14.73M	-14.96M	-8.67M
Net Income	-13.15M	-15.52M	-19.11M	-17.60M	-11.48M
Balance Sheet
Total Assets	25.14M	18.88M	25.49M	26.32M	20.06M
Cash, Cash Equivalents and Short-Term Investments	10.39M	603.00K	533.00K	49.00K	595.00K
Total Debt	10.41M	27.58M	21.89M	10.78M	1.46M
Total Liabilities	18.49M	38.06M	33.96M	22.12M	9.65M
Stockholders Equity	6.65M	-19.18M	-8.47M	4.20M	10.40M
Cash Flow
Free Cash Flow	-6.28M	-4.35M	-15.44M	-17.92M	-9.66M
Operating Cash Flow	-6.12M	-4.27M	-15.43M	-17.59M	-9.50M
Investing Cash Flow	-167.00K	-20.00K	-2.00K	-335.00K	-161.00K
Financing Cash Flow	16.08M	4.36M	15.92M	17.38M	9.34M

Reed's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REED, the sentiment is Negative. The current price of 0.88 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.03, and below the 200-day MA of 1.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 16.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REED.

Reed's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIZZ	76 Outperform	$4.29B	22.98	37.23%	―	0.81%	5.51%
AKO.A	75 Outperform	$3.27B	11.56	24.18%	4.31%	17.01%	11.63%
COCO	72 Outperform	$1.98B	32.19	24.35%	―	11.97%	16.10%
Sector *	62 Neutral	€10.27B	11.24	-4.77%	3.70%	-1.37%	-1399.31%
ZVIA	54 Neutral	$230.09M	―	-28.87%	―	-6.83%	19.09%
OTLY	48 Neutral	$461.33M	―	-114.20%	―	4.47%	42.22%
REED	47 Neutral	$48.60M	―	71.20%	―	-11.03%	49.65%

Reed's Corporate Events

Reed’s Appoints CFO as Principal Accounting Officer

Reed’s, Inc. announced the reassignment of its Chief Accounting Officer, Joann Tinnelly, with her duties being redistributed among other personnel, while Doug McCurdy, the Chief Financial Officer, will take on the role of principal accounting officer starting July 7, 2025. Additionally, on July 1, 2025, Reed’s, Inc. settled a previous engagement with an investment bank by agreeing to pay a total of $1.6 million, ensuring a mutual release and waiver from any liabilities or obligations under the prior agreement.

The most recent analyst rating on (REED) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Boosts Capital with New Stock Sale

On June 4, 2025, Reed’s, Inc. issued and sold 3,225,806 shares of common stock for approximately $3,000,000, with D&D Source of Life Holding, Ltd. as the lead investor. The transaction aims to bolster Reed’s working capital and support corporate growth initiatives, including international expansion and strategic investments.

The most recent analyst rating on (REED) stock is a Buy with a $1.75 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Reports Q1 2025 Sales Growth Amid Losses

Reed’s, Inc. reported a 4.5% increase in net sales to $10.0 million for the first quarter of 2025, driven by higher volumes with national customers. Despite the sales growth, the company experienced a flat gross profit and an increased operating loss of $1.7 million due to higher costs and investments in growth initiatives. CEO Cyril Wallace highlighted operational improvements, such as reduced short shipments and increased production capacity, which are expected to drive future growth and profitability. The company is focusing on expanding its distribution and launching new functional beverages to enhance its market position.

The most recent analyst rating on (REED) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.