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Splash Beverage Group (SBEV)
:SBEV
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Splash Beverage Group
(NYSE MKT:SBEV)
41Neutral
Positive Factors
Financial Performance
The completion of these transactions should materially change the financial performance, improve business stability, and drive longer-term operating savings across the brand portfolio.
Investment Potential
An improving return profile and meaningful growth opportunity should attract new investors over time and push SBEV shares towards the $0.50 price target.
Negative Factors
Revenue Performance
Quarterly revenue remains under pressure as the company continues to pull capital from the e-commerce business to fully fund the beverage portfolio.
Splash Beverage Group (SBEV) vs. S&P 500 (SPY)
Market Cap
$8.84M
Dividend YieldN/A
Average Volume (3M)3.84M
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-70.13%
EPS Growth-158.23%
CountryUS
Employees32
SectorConsumer Defensive
Sector Strength85
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)-3.20
Shares Outstanding1,547,775
10 Day Avg. Volume406,760
30 Day Avg. Volume3,838,183
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.37
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.18
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.50Price Target Upside-91.86% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Splash Beverage Group Business Overview & Revenue Model
Company DescriptionSplash Beverage Group, Inc. engages in the manufacturing, distribution, marketing, and sale of various beverages in the United States. Its products include flavored tequilas under the SALT Naturally Flavored Tequila name; hydration and recovery isotonic sport drink under the TapouT Performance name; wine under the Copa di Vino name; and Pulpoloco Sangria. The company also sells beverages and groceries online through qplash.com. Splash Beverage Group, Inc. is based in Fort Lauderdale, Florida.
How the Company Makes MoneySplash Beverage Group makes money primarily through the sale and distribution of its diverse beverage portfolio. The company generates revenue by marketing and selling its products to wholesalers, retailers, and directly to consumers. Key revenue streams include direct sales to retailers and distributors, online sales, and licensing agreements where the company partners with distributors to expand its market reach. Significant partnerships with established distribution networks enhance its market penetration and contribute to its earnings by broadening the availability and accessibility of its products across various regions. Additionally, Splash Beverage Group may also benefit from strategic acquisitions and brand development to expand its product line and increase market share.
Splash Beverage Group Financial Statement Overview
Summary
Splash Beverage Group is experiencing severe financial difficulties with negative margins, high leverage, and cash flow problems across its income statement, balance sheet, and cash flow statements. Investors should be cautious.Income Statement
Splash Beverage Group's income statement reveals significant challenges. The gross profit margin and net profit margin are negative, indicating the company is struggling with profitability. There is no clear revenue growth trajectory, as the latest TTM revenue is lower than the previous year. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.―
Balance Sheet
The balance sheet shows substantial financial instability. With negative stockholders' equity, the company is highly leveraged, and the debt-to-equity ratio is not calculable. The return on equity is also negative due to losses. These factors suggest a precarious financial position with potential risks.25
Cash Flow
Cash flow analysis indicates ongoing cash constraints. The operating cash flow to net income ratio and the free cash flow to net income ratio are negative, highlighting challenges in generating positive cash flow. However, there is some improvement in free cash flow growth from the previous year, suggesting slight operational improvements.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.85M | 18.09M | 11.32M | 2.98M | 1.02M | Gross Profit |
| 5.57M | 5.92M | 2.58M | 724.12K | 508.96K | EBIT |
| -15.29M | -21.39M | -29.08M | -17.30M | -470.40K | EBITDA |
| -14.76M | -20.45M | -28.67M | -17.47M | -470.40K | Net Income Common Stockholders |
| -21.00M | -21.68M | -29.50M | -30.67M | -486.65K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 379.98K | 4.43M | 4.18M | 380.00K | 23.32K | Total Assets |
| 9.90M | 17.30M | 16.39M | 9.23M | 426.06K | Total Debt |
| 9.35M | 4.37M | 4.65M | 4.42M | 291.32K | Net Debt |
| 8.97M | -65.75K | 466.26K | 4.04M | 268.00K | Total Liabilities |
| 15.50M | 7.98M | 7.51M | 9.33M | 645.17K | Stockholders Equity |
| -5.61M | 9.32M | 8.87M | -102.00K | -219.11K |
| Cash Flow | Free Cash Flow | |||
| -10.20M | -14.20M | -15.13M | -23.20M | -282.79K | Operating Cash Flow |
| -10.19M | -14.09M | -15.13M | -23.10M | -228.41K | Investing Cash Flow |
| -14.11K | -102.70K | 0.00 | -780.25K | -47.94K | Financing Cash Flow |
| 6.15M | 14.45M | 18.93M | 22.49M | 292.68K |
Splash Beverage Group Technical Analysis
Neutral
6.14
Price Trends
4.27
Positive
5.86
Positive
8.34
Negative
Market Momentum
0.83
Negative
55.03
Neutral
33.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBEV, the sentiment is Neutral. The current price of 6.14 is above the 20-day moving average (MA) of 5.46, above the 50-day MA of 4.27, and below the 200-day MA of 8.34, indicating a neutral trend. The MACD of 0.83 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 33.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBEV.
Splash Beverage Group Risk Analysis
Splash Beverage Group disclosed 47 risk factors in its most recent earnings report. Splash Beverage Group 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
Splash Beverage Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $39.18B | 14.45 | 16.55% | 4.99% | 1.25% | -13.02% | |
79 Outperform | $2.84B | 16.72 | 11.55% | 1.79% | 0.15% | 35.56% | |
73 Outperform | $2.70B | 39.97 | 7.36% | ― | 0.79% | -24.27% | |
64 Neutral | $8.85B | 14.84 | 5.05% | 174.27% | 3.54% | 3.75% | |
41 Neutral | $8.84M | ― | 191.27% | ― | -70.13% | -158.23% | |
41 Neutral | $12.02M | ― | -23.93% | ― | -24.81% | 80.45% |
* Consumer Defensive Sector Average
Performance Comparison
SBEV
Splash Beverage Group
6.14
-6.26
-50.48%
SAM
Boston Beer
244.86
-46.30
-15.90%
CCU
Compania Cervecerias Unidas SA
14.86
2.52
20.42%
ABEV
Ambev SA
2.53
0.35
16.06%
BLNE
Eastside Distilling
1.49
-14.81
-90.86%
YHC
LQR House
1.99
-34.06
-94.48%
Splash Beverage Group Earnings Call Summary
Earnings Call Date:Nov 25, 2024
(Q3-2024)
| % Change Since: -28.27%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in gross margins and distribution expansion, along with substantial capital raising efforts and promising acquisition opportunities. However, persistent liquidity challenges and legal issues with ABG TapouT, coupled with a notable net loss, underscore ongoing financial hurdles.Q3-2024 Updates
Positive Updates
Improved Gross Margins
Q3 2024 gross margins increased to 30%, up from 23% in Q2 2024 and 11% in Q1 2024, driven by strategic sourcing and lower wine costs.
Expansion of Distribution Network
Notable distribution expansion in the Pacific Northwest, Northeast, and Southwest regions, including full state coverage in Washington and Texas.
Significant Capital Raise
Raised approximately $8 million since August 2024 to support working capital and strategic acquisitions.
Retail Partnership Expansion
Circle K authorized Copa di Vino for all franchise stores, covering over 800 locations in the U.S.
Potential Strategic Acquisitions
Pending acquisition in the energy drink market with expected revenue contribution of $30 million.
Negative Updates
Liquidity Challenges
Ongoing liquidity issues impacting inventory and sales, with net sales of $381,000 in Q3 2024, down from over $1 million in Q2 2024.
ABG TapouT Lawsuit
Legal struggle with ABG TapouT due to discontinuation of TapouT product line.
Net Loss and EBITDA
Q3 2024 net loss was $4.6 million, an improvement from prior quarters, but still a significant loss. EBITDA was a loss of $1.7 million.
Delays in Funding Inflows
Delays in liquidity inflows affecting operations and timing of acquisitions.
Company Guidance
During the Q3 2024 earnings call for Splash Beverage Group, CEO Robert Nistico provided comprehensive guidance on the company's financial and strategic outlook. Key highlights included a significant improvement in gross margins, which rose to 30% from 23% in Q2 and 11% in Q1, driven by strategic sourcing programs and a reduction in SG&A expenses by $500,000 from the previous quarter. Despite liquidity challenges, the company managed to raise approximately $8 million since August 2024 to support working capital and potential acquisitions. CFO Julius Ivancsits reported Q3 net sales of $381,000, a slight decline from Q2, attributed to inventory limitations. However, the gross margin saw an increase of $244,000 from Q2, reaching $981,000 in Q3, supported by the restart of the Qplash resale business, which boasts a gross margin of 59%. Operating expenses decreased by $1 million, contributing to an improved EBITDA loss of $1.7 million, a $2 million improvement from Q3 2023. The company's liquidity remained tight, with a cash balance of $457,000 at the end of Q3. Looking forward, Splash anticipates positive cash flow and EBITDA by Q3 2025, bolstered by distribution expansions and strategic acquisitions, including an energy drink company with projected growth of over 30%.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.