Zevia PBC (ZVIA) AI Stock Analysis

• Market Cap: $251.61M
• Dividend Yield: N/A
• Average Volume (3M): 990.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -6.83%
• EPS Growth: 19.09%
• Country: US
• Employees: 108
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.08
• Shares Outstanding: 66,064,650
• 10 Day Avg. Volume: 766,497
• 30 Day Avg. Volume: 990,363
• PEG Ratio: -1.58
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -194.31
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -1.80
• 1Y Price Target: $3.75
• Price Target Upside: 10.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• 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

Distribution 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.

Margin Improvement

Despite the lack of topline leverage, gross margins were stronger than expected, up 440 basis points year-over-year to a record 50.1%, driven by lower product costs and improved inventory management.

Retail Partnerships

Zevia believes that it is well positioned to capitalize on the broadening retail trend with Albertsons planning to launch its own better-for-you soda set.

Negative Factors

Promotional Activity

Zevia's reported better-than-feared Q1 results, with net sales growth down a modest -2.0% year-over-year, weighed largely by increased promotional activity at retailers, though partially offset by pricing and improved volumes.

Sales Guidance

ZVIA guided to weaker than expected FY25 sales of $158-163M on the above points, and an adjusted EBITDA loss of $8-11M.

SG&A Costs

Higher than expected SG&A resulted in a -$1.7M adjusted EBITDA miss, with the higher SG&A stemming from marketing and increased freight out due to higher volumes.

Zevia PBC Business Overview & Revenue Model

Company Description

Zevia PBC (ZVIA) is a public benefit corporation that operates within the non-alcoholic beverage sector, primarily focusing on the development, marketing, and sale of zero-calorie, naturally sweetened beverages. The company's core products include a range of sodas, energy drinks, teas, and mixers, all of which are sweetened with stevia, a natural plant-based sweetener. Zevia is committed to providing healthier alternatives to traditional sugary and artificially sweetened beverages while promoting a sustainable and environmentally friendly business model.

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

Zevia PBC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZVIA, the sentiment is Positive. The current price of 3.39 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 2.95, and above the 200-day MA of 2.68, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 90.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZVIA.

Zevia PBC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COCO	78 Outperform	$2.17B	37.54	24.86%	―	8.01%	11.26%
FIZZ	76 Outperform	$4.46B	23.91	37.23%	―	0.81%	5.51%
AKO.A	75 Outperform	$3.27B	12.10	23.07%	5.15%	13.22%	11.37%
Sector *	65 Neutral	$27.21B	15.46	-4.29%	3.19%	1.01%	3.46%
ZVIA	54 Neutral	$251.61M	―	-28.87%	―	-6.83%	19.09%
OTLY	48 Neutral	$459.69M	―	-114.20%	―	4.47%	42.22%
BRFH	39 Underperform	$50.85M	―	-117.82%	―	22.04%	-21.72%

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.