Zevia PBC (ZVIA) AI Stock Analysis

• Market Cap: $203.11M
• Dividend Yield: N/A
• Average Volume (3M): 795.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -1.08%
• EPS Growth: 54.50%
• Country: US
• Employees: 108
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.01
• Shares Outstanding: 67,318,540
• 10 Day Avg. Volume: 965,538
• 30 Day Avg. Volume: 795,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: -14.63
• 1Y Price Target: $4.55
• Price Target Upside: 71.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: ―

Zevia PBC's overall stock score reflects a company with strong revenue growth potential but facing significant profitability and cash flow challenges. The earnings call reveals positive consumer engagement and improved gross margins, yet operating losses and valuation concerns remain. The technical analysis supports a cautious outlook due to bearish momentum. The company's strategic focus on growth and cost management is promising, but realization of these initiatives is crucial for future performance.

Positive Factors

Cost Management

Gross margin expanded significantly, reflecting lower product costs and improved inventory management.

Earnings

ZVIA reported much stronger-than-expected Q2 results, with net sales growth up a strong +10.1% year-over-year.

Market Expansion

The company's expanded distribution into more than 4,300 U.S. Walmart stores, as part of Walmart’s new modern soda set featuring better-for-you low/no sugar sodas, appears to be off to a strong start.

Negative Factors

Financial Performance

ZVIA maintained its FY revenue guidance but expects an Adj. EBITDA loss due to increased marketing investments and higher promotions.

Guidance Concerns

Weaker than expected 2025 guidance highlights limited visibility that ZVIA can capitalize on a consumer shift to modern (healthier) soda.

Profitability Concerns

Despite Q2 profitability, there is still limited visibility on whether ZVIA can capitalize on the modern (healthier) soda category trend.

Zevia PBC Business Overview & Revenue Model

Company Description

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated and non-carbonated soft drinks in the United States and Canada. It offers soda, energy drinks, organic tea, mixers, kidz beverages, and sparkling water. The company offers its products through various retail channels, including grocery distributors, national retailers, warehouse club, and natural products retailers, as well as e-commerce channels. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

How the Company Makes Money

Zevia PBC generates revenue primarily through the sale of its naturally sweetened beverage products. The company's key revenue streams include direct sales to retailers, distributors, and online platforms. Zevia's products are distributed across a wide network of grocery stores, natural food retailers, and e-commerce channels, which helps to increase its market reach and accessibility to health-conscious consumers. Additionally, strategic partnerships with retailers and distributors play a significant role in expanding its distribution footprint. Zevia's earnings are also influenced by factors such as consumer preferences for healthier products, market trends in the beverage industry, and its ability to maintain competitive pricing while managing production costs.

Zevia PBC Financial Statement Overview

Summary

Zevia PBC's financial performance reflects a company with robust revenue growth but persistent profitability challenges. While the company maintains a strong cash position and low leverage, net losses and negative cash flows highlight the need for improved operational efficiency and profitability.

Income Statement

Zevia PBC's income statement shows a mixed financial performance. The company has experienced revenue growth over the years, with a notable increase from 2019 to 2020 and continued growth through 2021. However, the gross profit margin has been relatively stable, indicating effective cost management. Despite this, the company has consistently reported net losses, and net profit margins remain negative, highlighting ongoing challenges in achieving profitability. EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies. While revenue growth is a positive sign, the company needs to address its profitability issues to improve its financial health.

Balance Sheet

The balance sheet of Zevia PBC reveals some areas of concern. Although the company has maintained a significant cash reserve, total liabilities remain a fraction of stockholders' equity, suggesting a relatively low debt load. However, the company has negative equity in earlier years and only recently moved to positive equity, which may pose a risk. The debt-to-equity ratio is low, indicating conservative leverage, but the return on equity is negative due to the net losses, which is a significant weakness. Overall, while the company is not heavily leveraged, the negative ROE and historical negative equity are areas that need improvement.

Cash Flow

Zevia PBC's cash flow analysis shows some resilience but also areas for improvement. The company has managed to maintain a positive cash balance, but operating cash flow has consistently been negative, which is concerning. Free cash flow also remains negative, indicating that the company is not generating sufficient cash from its operations to support its capital expenditures. The operating cash flow to net income ratio suggests that cash flows are not effectively covering net losses. Despite these challenges, the company has managed its cash reserves well, which provides some financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.37M	155.05M	166.42M	163.18M	138.17M	110.03M
Gross Profit	77.76M	71.93M	74.76M	70.02M	61.21M	49.50M
EBITDA	-11.83M	-20.19M	-27.33M	-45.58M	-86.07M	-4.55M
Net Income	-14.21M	-20.00M	-21.49M	-47.65M	-87.67M	-6.07M
Balance Sheet
Total Assets	62.45M	67.95M	90.86M	98.93M	124.99M	49.96M
Cash, Cash Equivalents and Short-Term Investments	26.30M	30.65M	31.95M	47.40M	73.11M	14.94M
Total Debt	1.09M	1.31M	1.95M	715.00K	237.00K	861.00K
Total Liabilities	24.75M	25.01M	29.09M	17.15M	20.43M	246.77M
Stockholders Equity	53.02M	64.88M	89.88M	109.95M	128.48M	-196.81M
Cash Flow
Free Cash Flow	-2.65M	-1.30M	-17.90M	-23.37M	-20.95M	-4.06M
Operating Cash Flow	-2.41M	-1.02M	-16.27M	-20.78M	-17.81M	-3.26M
Investing Cash Flow	-235.00K	-283.00K	805.00K	27.41M	-33.14M	-805.00K
Financing Cash Flow	5.00K	0.00	25.00K	-2.34M	79.12M	15.76M

Zevia PBC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.65
• 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 ZVIA, the sentiment is Negative. The current price of 2.65 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 3.08, and below the 200-day MA of 2.95, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZVIA.

Zevia PBC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKO.A	80 Outperform	$3.44B	11.70	24.18%	7.72%	17.01%	11.63%
COCO	77 Outperform	$2.09B	33.94	24.35%	―	11.97%	16.10%
FIZZ	63 Neutral	$3.85B	20.70	37.23%	―	0.81%	5.51%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
ZVIA	54 Neutral	$203.11M	―	-22.11%	―	-1.08%	54.50%
OTLY	52 Neutral	$519.53M	―	-114.20%	―	4.47%	42.22%
BRFH	39 Underperform	$49.02M	―	-161.48%	―	24.52%	-7.31%

Zevia PBC Corporate Events

Zevia PBC Announces Departure of Key Executive

On February 6, 2025, Zevia PBC announced that Ms. Lorna R. Simms, the company’s SVP, General Counsel, and Corporate Secretary, will be stepping down from her roles effective April 4, 2025. The transition follows a mutual agreement and involves a separation agreement that aligns with the existing severance terms established in March 2022, indicating a smooth transition and adherence to prior arrangements.