Vinco Ventures, Inc. (BBIG - Get Rating) in Bethlehem, Pa., operates as a consumer product research and development, manufacturing, sales, and fulfillment company. The company recently announced the acquisition of AdRizer to monetize the content creation and streaming capabilities of the Lomotif short-form video app through digital advertising. BBIG also plans to merge with ZASH Global.

The stock has declined 52.1% in price over the past six months to close yesterday’s trading session at $2.97. In addition, it is currently trading 76.2% below its 52-week high of $12.49, which it hit on Sept. 8, 2021, due to a Reddit-fueled short squeeze.

BBIG’s 27.1% floating shares have been sold short, indicating bearish investor sentiment. Furthermore, BBIG’s near-term prospects look bleak because the company is generating very little revenue and is not yet profitable.

Here is what could influence BBIG’s performance in the upcoming months:

Disappointing Financials

For the fiscal third quarter, ended Sept. 30, 2021, BBIG’s net revenue declined 11.5% year-over-year to $2.23 million. The company’s operating loss for the quarter increased 1,472% year-over-year to $25.17 million. Its adjusted net loss came in at $4.90 million, representing a 1,607.8% year-over-year increase. Also, its adjusted EPS was $0.68, up 126.7% year-over-year.

Low Profitability

In terms of the trailing-12-month asset turnover ratio, BBIG’s 0.08% is 92.9% lower than the 1.05% industry average. Likewise, its 30.72% trailing-12-month gross profit margin is 14.5% lower than the 35.91% industry average. Furthermore,  the stock’s trailing-12-month EBITDA margin and ROTA are negative compared to the 12.68% and 6.12% respective industry averages.

Stretched Valuation

In terms of trailing-12-month EV/S, BBIG’s 40.77x is significantly higher than the 1.31x industry average. And its 7.44x trailing-12-month P/S is 656.3% higher than the 0.98x industry average.

POWR Ratings Reflect Bleak Prospects

BBIG has an overall F rating, which equates to a Strong Sell in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. BBIG has an F grade for Quality, in sync with its lower-than-industry profitability ratios.

The stock has an F grade for Stability, which is consistent with its 1.92 beta. In addition, BBIG has an F grade for Value, which is in sync with its higher-than-industry valuation ratios.

Furthermore, the stock has a D grade for Momentum, which is consistent with its 29.6% loss over the past nine months and 19.5% decline over the past year.

BBIG is ranked #60 out of 61 stocks in the D-rated Consumer Goods industry. Click here to access BBIG’s ratings for Growth and Sentiment.

Bottom Line

BBIG is currently trading below its 50-day and 200-day moving averages of $2.98 and $4.10, respectively, indicating a downtrend. Furthermore, it could keep retreating in the near term due to the decline in cryptocurrency revenue from its Cryptyde unit. Because the stock looks overvalued at the current price level, we think it is best to avoid it now.

How Does Vinco Ventures (BBIG) Stack Up Against its Peers?

While BBIG has an overall POWR Rating of F, one might want to consider investing in the following Consumer Goods stocks with an A (Strong Buy) or B (Buy) rating: Mannatech, Incorporated (MTEX - Get Rating), Société BIC SA (BICEY - Get Rating), and Ennis, Inc. (EBF - Get Rating).

BBIG shares were trading at $3.11 per share on Tuesday afternoon, up $0.14 (+4.71%). Year-to-date, BBIG has gained 30.67%, versus a -2.95% rise in the benchmark S&P 500 index during the same period.

About the Author: Nimesh Jaiswal

Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...

More Resources for the Stocks in this Article