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REED

BEARISH
$3.7 Live
Reed's, Inc. · AMEX
Target $4.75 (+28.4%)
$1.75 52W Range $12.0

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AI Analysis

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Confidence
95%
REED exhibits critical financial distress, highlighted by a Piotroski F-Score of 0/9, indicating the worst possible fundamental health. The company is suffering from a severe contraction in growth, with YoY revenue declining by 23.10%, coupled with catastrophic ROE of -200.54%. Consistent earnings misses (0/4 in the last year) and a 5-year price collapse of 98.8% suggest a failing business model. Despite a single analyst target of $4.75, the deterministic data points toward a high risk of insolvency or further devaluation.

Key Strengths

Current ratio of 1.60 provides a marginal short-term liquidity buffer
Positive gross margin (26.35%) indicates the product itself has some value
Micro-cap status allows for high volatility spikes on speculative news
Price/Sales ratio (1.28) is relatively low compared to high-growth peers
Recent Q/Q EPS growth shows a slight reduction in the magnitude of losses

Key Risks

Extreme fundamental weakness (Piotroski 0/9)
Accelerating revenue decline (-23.10% YoY)
Severe negative profitability with a profit margin of -46.51%
Consistent and massive earnings misses (Average surprise -93.69%)
High Price-to-Book ratio (4.83) for a non-profitable entity

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