FIZZ is now overvalued and could go down -29%
National Beverage, headquartered in Fort Lauderdale, Florida, develops and sells sparkling waters, juices, energy drinks, and carbonated soft drinks, employing 1,559 staff. Its brands include LaCroix, Rip It, and Shasta, targeting health-conscious consumers.
Based on our analysis, National Beverage has received an overvalued rating of 2 out of 5 stars from Cashu. Several financial metrics indicate potential concerns regarding its valuation relative to the sector.
The Price-to-Earnings (PE) Ratio for National Beverage stands at 22.01, which is above the sector average of 19.23. A higher PE ratio can suggest that investors are paying more for each unit of earnings, potentially indicating overvaluation.
Additionally, the Price-to-Book (PB) Ratio for National Beverage is 9.24, significantly higher than the sector's average of 2.04. This ratio compares a company's market value to its book value, and a high PB ratio may imply that the stock is priced excessively compared to its actual worth.
While National Beverage boasts a strong Net Profit Margin of 15.55, well above the sector's -8.45, this metric alone does not justify the high valuation compared to its peers. Furthermore, the company has a Return on Assets (ROA) Ratio of 27.77, far exceeding the sector's -8.37, but again, this strong performance does not mitigate the concerns raised by its elevated PE and PB ratios.
In summary, while National Beverage shows impressive profitability metrics, its high valuation ratios suggest that it may be overvalued compared to its industry peers. Investors should carefully consider these factors when evaluating this stock.
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.
