Reed's, Inc.Find Ratings Reports
REEDS INC's gross profit margin for the second quarter of its fiscal year 2020 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. REEDS INC has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 44.16% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||10.85||9.48|
|Net Income ($mil)||-1.75||-4.46|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||1.11||1.6|
|Total Assets ($mil)||17.67||16.34|
|Total Debt ($mil)||9.1||9.56|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||27.64||23.98|
|Return on Assets||-71.98||-79.9|
|Return on Equity||-443.92||-657.09|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||62.93||33.71|
|Div / share||0.0||0.0|
|Book value / share||0.05||0.06|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||420868.0||1039945.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 13.19 indicates a significant premium versus the S&P 500 average of 3.92 and a significant premium versus the subsector average of 10.45. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, REEDS INC proves to trade at a premium to investment alternatives.
|REED NM||Peers 34.64||REED NM||Peers 24.45|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
REED's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
REED's P/CF is negative making the measure meaningless.
|REED NM||Peers 30.35||REED NA||Peers 2.91|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
REED's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|REED 13.19||Peers 10.45||REED 29.55||Peers -29.96|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
REED is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
REED is expected to have an earnings growth rate that significantly exceeds its peers.
|REED 1.04||Peers 4.97||REED -5.45||Peers -3.70|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
REED is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
REED significantly trails its peers on the basis of sales growth.