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Zevia PBC (ZVIA)
NYSE:ZVIA
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Zevia PBC
(NYSE:ZVIA)
52Neutral
Positive Factors
Distribution Expansion
The company’s expanded distribution into more than 4,300 U.S. Walmart stores should help drive awareness and trial for the category.
Retail Opportunities
Greater long-term opportunity with retailers developing the modern soda (healthy) aisle more aggressively and the potential for long-term topline opportunity for ZVIA.
Negative Factors
Financial Performance
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 (ZVIA) vs. S&P 500 (SPY)
Market Cap
$155.10M
Dividend YieldN/A
Average Volume (3M)617.01K
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth-6.83%
EPS Growth19.09%
CountryUS
Employees115
SectorConsumer Defensive
Sector Strength77
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-0.34
Shares Outstanding61,957,462
10 Day Avg. Volume841,312
30 Day Avg. Volume617,015
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.03
Price to Cash Flow (P/CF)-20.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside65.88% Upside
Rating ConsensusHold
Number of Analyst Covering4
Zevia PBC Business Overview & Revenue Model
Company DescriptionZevia 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 MoneyZevia 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 has shown revenue growth but continues to struggle with profitability and cash flow management. While the balance sheet reflects a strong cash position and low leverage, persistent net losses and negative cash flows are concerning. The company needs to focus on improving operational efficiency and profitability to strengthen its financial standing.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.62
Positive
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.48
Neutral
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.55
Neutral
| 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 | EBIT |
| -23.65M | -28.94M | -47.87M | -87.43M | -5.48M | EBITDA |
| -20.19M | -27.33M | -45.58M | -86.07M | -4.55M | Net Income Common Stockholders |
| -20.00M | -21.49M | -47.65M | -87.67M | -6.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 30.65M | 31.95M | 47.40M | 73.11M | 14.94M | Total Assets |
| 67.95M | 90.86M | 98.93M | 124.99M | 49.96M | Total Debt |
| 1.31M | 1.95M | 715.00K | 237.00K | 861.00K | Net Debt |
| -29.34M | -30.01M | -46.68M | -42.87M | -14.07M | 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
Negative
2.11
Price Trends
3.64
Negative
2.86
Negative
1.90
Positive
Market Momentum
-0.42
Positive
29.74
Positive
17.72
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 2.11 is below the 20-day moving average (MA) of 2.84, below the 50-day MA of 3.64, and above the 200-day MA of 1.90, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 29.74 is Positive, neither overbought nor oversold. The STOCH value of 17.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZVIA.
Zevia PBC Risk Analysis
Zevia PBC disclosed 54 risk factors in its most recent earnings report. Zevia PBC reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zevia PBC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $305.54B | 29.03 | 41.86% | 2.71% | 1.96% | -0.45% | |
76 Outperform | $54.27B | 37.59 | 21.27% | ― | 4.94% | -4.13% | |
74 Outperform | $6.54B | 62.91 | 12.54% | ― | 2.85% | -43.53% | |
69 Neutral | $211.81B | 22.22 | 52.42% | 3.41% | 0.42% | 5.77% | |
69 Neutral | $3.98B | 21.46 | 40.81% | ― | 0.34% | 9.48% | |
63 Neutral | $20.76B | 13.76 | -10.60% | 7.37% | 1.45% | 9.35% | |
52 Neutral | $155.10M | ― | -25.77% | ― | -6.83% | 19.09% |
* Consumer Defensive Sector Average
Performance Comparison
ZVIA
Zevia PBC
2.19
0.85
63.43%
KO
Coca-Cola
71.04
12.33
21.00%
MNST
Monster Beverage
55.23
-4.59
-7.67%
FIZZ
National Beverage
42.12
-2.85
-6.34%
PEP
PepsiCo
152.33
-6.91
-4.34%
CELH
Celsius Holdings
27.83
-63.24
-69.44%
Zevia PBC Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -35.28% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Zevia PBC displayed a promising return to growth with significant improvements in gross margin and consumer engagement. Marketing campaigns have been highly successful, and the company maintains a strong financial position. However, ongoing operating losses, a full-year sales decline, and anticipated distribution losses present challenges. Despite these issues, the company's strategic initiatives and financial improvements suggest a cautiously optimistic outlook.Highlights
Return to Growth
Zevia PBC returned to growth in Q4 2024 with a sales increase of over 4%, driven by increased volumes and expanded distribution, particularly from 800 to over 4,300 Walmart locations.
Record Gross Margin
Achieved a record high gross margin of 49.2%, an increase of 850 basis points from the previous year, reflecting improved inventory management and productivity initiatives.
Positive Consumer Engagement
Zevia PBC's consumer engagement is high, with a repeat rate of over 40% and an average brand spend per household 38 percentage points higher than the average beverage shopper.
Significant Marketing Campaign Success
The 'Break from the Artificial' campaign went viral, significantly boosting brand visibility and leading to increased marketing investments.
Strong Financial Position
Ended the quarter with approximately $30.7 million in cash and cash equivalents, with an undrawn revolving credit line of $20 million, indicating strong liquidity.
Lowlights
Continued Operating Losses
Net loss for Q4 2024 was $6.8 million, with an adjusted EBITDA loss of $3.9 million, though improved from the previous year.
Full Year Sales Decline
Net sales for the full fiscal year 2024 decreased by 6.8%, driven by lost distribution in select channels and increased promotional spend.
Distribution Losses
Anticipated distribution losses at one mass-market customer and in the club channel, as well as the discontinuation of kids and mixers lines, expected to impact 2025's first half.
Increased Selling and Marketing Expenses
Selling and marketing expenses rose to 41.7% of net sales in Q4 2024 from 36.6% the previous year, primarily due to increased advertising investment.
Company Guidance
During the call, Zevia PBC provided guidance for fiscal 2025, highlighting several key metrics and strategies. The company expects net sales to range from $158 million to $163 million, despite anticipated distribution losses in the mass and club channels. They aim to achieve a gross margin in the high 40% range, supported by a $15 million annualized savings from productivity initiatives, including an additional $1.7 million from a recent workforce reduction. The company forecasts an adjusted EBITDA loss between $8 million and $11 million, with a focus on balancing cost savings and reinvestment in growth. Zevia plans to increase marketing spend, particularly in the first and third quarters, to capitalize on the better-for-you soda category’s momentum. For Q1 2025, they project net sales between $36 million and $38 million, with an adjusted EBITDA loss of $5.6 million to $6 million, factoring in higher marketing investments and promotional activities.Zevia PBC Corporate Events
Executive/Board Changes
Zevia PBC Announces Departure of Key Executive
Neutral
Feb 7, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.