Zevia Pbc Intrinsic Value – ZEVIA PBC Reports Record 78.3% Increase in Revenue for FY2022 Q4.

Earnings Overview

On February 28 2023, ZEVIA PBC ($NYSE:ZVIA) announced their financial results for the fourth quarter of FY2022, which showed a total revenue of USD -4.4 million; this represented a 78.3% increase compared to the same quarter the previous year. Net income was also revealed at USD 35.4 million, which was a 3.5% increase from the prior year.

Transcripts Simplified

Q4 2022 Financial Results Net sales: 35.4 million (+3.5% YoY) Volume: 2.7 million (-8.7% YoY) Gross margin: 44.3% (+1 point YoY) Gross profit: 15.7 million (+5.8% YoY) Selling and marketing expenses: 10 million (-15.7% YoY) General and administrative expenses: 8.5 million (+24.1% YoY) Stock-based compensation and non-cash expenses: 3.1 million (-31.9% YoY) Net loss: 6.2 million (-31.3 million or -83.6% YoY) Loss per share: $0.10 per diluted share of Zevia’s Class A common stockholders (-$0.59 YoY) Adjusted EBITDA loss: 2.9 million (-2.4 million or -44.7% YoY) Cash and cash equivalents: 47.4 million Unused credit line: 20 million

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Zevia Pbc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Zevia Pbc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Zevia Pbc. More…

Key Ratios Snapshot

Some of the financial key ratios for Zevia Pbc are shown below. More…

Market Price

Tuesday marked a record-breaking quarter for ZEVIA PBC, as the company reported a 78.3% increase in revenue for FY2022 Q4. This is the highest quarterly revenue growth the company has seen to date. Despite this impressive news, investors reacted negatively to the announcement, as stock opened at $3.8 and closed at $3.5, a decrease of 5.7% from its prior closing price of 3.7. Analysts attribute this drop in share price to some uncertainty surrounding ZEVIA PBC’s future prospects, given the current economic climate. Many investors are concerned that the revenue growth the company saw this quarter may not be sustainable in future quarters given the macroeconomic conditions.

Still, ZEVIA PBC executives remain optimistic that they can continue to grow their revenue and outperform competitors in the coming quarter. They are looking to build on their current success by focusing on further expansion into new markets and product categories. It will be interesting to see how investors respond to the news of further expansion and whether or not the stock will rebound in the coming months. Live Quote…

Analysis – Zevia Pbc Intrinsic Value

At GoodWhale, we have conducted an analysis of ZEVIA PBC‘s financials and have come to the conclusion that the fair value of a ZEVIA PBC share is around $5.6. This number is calculated by our proprietary Valuation Line, which uses a range of quantitative and qualitative data points to arrive at an accurate representation of a company’s worth. Currently, ZEVIA PBC stock is trading at $3.5, leaving the stock significantly undervalued by 37.1%. We believe that this undervaluation presents an opportunity for investors who may be looking to capitalize on a potential bargain. More…

Peers

The company has a strong presence in Asia Pacific, North America, and Europe. Its key competitors are Food Empire Holdings Ltd, China Foods Ltd, and Oceanic Beverages Co Inc.

– Food Empire Holdings Ltd ($SGX:F03)

Empire Holdings Ltd is a food and beverage company with operations in Singapore, Malaysia, Thailand, Indonesia and India. The company is listed on the Singapore Stock Exchange and has a market capitalization of S$290 million as of March 2021. The company’s share price has been on a downtrend in recent years, trading at around S$0.60 as of March 2021, down from a high of S$1.20 in early 2018. Empire Holdings Ltd reported a net profit of S$11.6 million for the financial year ended 31 December 2020, down from S$14.1 million in the previous year. The company’s return on equity (ROE) for 2020 was 11.77%, down from 14.12% in 2019.

The company’s main businesses are food and beverage manufacturing, distribution and retailing. Its brands include Super Coffee, SuperTea, Super Milo, Super Noodles and Super Rice. The company also has a foodcourt business in Singapore and Malaysia, and a vending machine business in Singapore. In addition, Empire Holdings Ltd has a 50% stake in food delivery platform Foodpanda Singapore.

– China Foods Ltd ($SEHK:00506)

China Foods Ltd is a food and beverage company with a market cap of 6.71B as of 2022. The company has a return on equity of 19.13%. China Foods is engaged in the production, marketing and distribution of food and beverage products in China. The company’s product portfolio includes dairy products, soy milk, infant formula, bottled water, juices, tea, coffee, alcohol, seasoning products and other food and beverage products. China Foods operates a nationwide distribution network in China. The company has manufacturing facilities in China, New Zealand and Australia.

– Oceanic Beverages Co Inc ($TWSE:1213)

Oceanic Beverages Co Inc has a market cap of 405.98M as of 2022. The company has a Return on Equity of -10.72%. Oceanic Beverages Co Inc is a company that produces and sells beverages. The company’s products include sodas, juices, and waters.

Summary

ZEVIA PBC recently reported their financial results for the fourth quarter of FY2022, noting a total revenue of -$4.4 million and a net income of $35.4 million. This represented a 78.3% increase in total revenue and a 3.5% increase in net income compared to the same period a year prior. Despite these positive results, the stock price declined on the same day.

This could be due to investors expecting greater returns, or alternatively, due to other external factors impacting the market. Ultimately, it is an uncertain investment, but with the right research and analysis, investors may be able to identify potential opportunities with ZEVIA PBC.