FIZZ is now overvalued and could go down -29%

Based on our analysis, National Beverage has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios indicate that the company's valuation may not align with its financial performance when compared to the broader sector. The company's price-to-earnings (PE) ratio stands at 20.72, which exceeds the sector average of 19.43. A higher PE ratio may suggest that the stock is overvalued relative to its earnings potential. Additionally, the price-to-book (PB) ratio of 7.31 is significantly above the sector’s average of 2.17, indicating that investors are paying much more for each dollar of the company's net assets compared to its peers. Although National Beverage boasts a strong net profit margin of 14.83, which is notably higher than the sector's -9.39, it is important to consider the sustainability of this margin in the context of its higher valuation. Furthermore, while the company’s return on equity (ROE) is impressive at 31.59 compared to the sector's -15.01, this can sometimes indicate that a company is relying on debt to finance growth, which may pose risks in tight market conditions. Lastly, the company's dividend yield of 7.90 far exceeds the sector average of 2.25, suggesting that the high yield may not be sustainable without corresponding growth in earnings or cash flow. In summary, while National Beverage has some strong performance indicators, its high valuation ratios relative to the sector raise concerns about its price sustainability. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.