Does Splash Beverage Group Deserve a Place in Your Portfolio?

: SBEV | Splash Beverage Group Inc. News, Ratings, and Charts

SBEV – The global beverage market is growing quickly, and companies in this sector with innovative product offerings are expected to gain from the surging demand. However, will Splash Beverage’s (SBEV) stock be a wise addition to one’s portfolio given its higher-than-industry valuation and weak fundamentals? Read on to learn our view.

Based in Lauderdale, Fla., Splash Beverage Group, Inc. (SBEV) specializes in manufacturing, distribution, and sales and marketing of various beverages across multiple channels. SBEV operates in both alcoholic and non-alcoholic beverage segments. The company also operates its own vertically integrated business-to-business and business-to-consumer e-commerce distribution platform called Qplash. Its brands include TapouT, SALT, Copa di Vino, and Pulpoloco Sangria.

The global beverage market has been growing with the rise in consumer spending due to rising levels of disposable income, changing tastes and preferences, and evolving lifestyles. According to a report by PipeCandy, the global beverage industry is expected to grow at a 4% CAGR to  $1.96 trillion by 2024.

However, not all companies are well-positioned to capitalize on the industry’s  growth. SBEV’s stock has gained 110.6% in price year-to-date but declined 26.5% over the past six months to close the last trading session at $2.46. The stock is currently trading 63.3% below its 52-week high of $6.72, which it hit on May 12, 2021.

Here is what could influence the performance of SBEV in upcoming months:

Disappointing Financials

SBEV’s operating expenses increased 75.6% year-over-year to $31.66 million for its fiscal year ended Dec.31, 2021. The company’s loss from continuing operations widened 64.6% year-over-year to $29.08 million. Also, its net loss widened 1.3% year-over-year to $29.05 million.

Low Profitability

In terms of trailing-12-month gross profit margin, SBEV’s 22.81% is 34.2% lower than the 34.72% industry average. And its trailing-12-month ROC and ROA are negative compared to the respective industry averages of 7.14% and 4.91%.

Stretched Valuation

In terms of forward EV/S, SBEV’s 4.19x is 122.2% higher than the 1.88x industry average. In addition, its EV/EBITDA and EV/EBIT of 76.60x and 85.27x, respectively, are 520.5% and 415.1% higher than the industry averages of 12.34x and 16.55x.

POWR Ratings Reflect Bleak Prospects

SBEV has an overall D rating, which equates to Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. SBEV has an F grade for Quality, which is in sync with its 0.72% trailing-12-month Capex/S, which is 77% lower than the 3.14% industry average.

Furthermore, the stock has an F grade for Value, which is in sync with its 4.15x forward P/S, which is 225.7% higher than the 1.27x industry average.

SBEV is ranked #31 out of 35 stocks in the B-rated Beverages industry. Click here to access SBEV’s growth, Momentum, Stability, and sentiment ratings.

Bottom Line

The consumption of various beverages is likely to rise amid rising disposable income, changing lifestyles, and product innovations. However, SBEV does not look well-positioned to capitalize on the industry’s growth prospects due to its lower-than-industry profitability, stretched valuation, and weak financials. So, we think it could be wise to avoid the stock now.

How Does Splash Beverage Group, Inc. (SBEV) Stack Up Against its Peers?

SBEV has an overall POWR Rating of D, which equates to a Sell rating. Therefore, one might want to consider investing in other Beverages stocks with an A (Strong Buy) or B (Buy) rating, such as Coca-Cola FEMSA, S.A.B. de C.V. (KOF), Coca-Cola Consolidated, Inc. (COKE), and Heineken Holding N.V. (HKHHY).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


SBEV shares were trading at $2.34 per share on Monday morning, down $0.12 (-4.88%). Year-to-date, SBEV has gained 100.34%, versus a -11.10% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SBEVGet RatingGet RatingGet Rating
KOFGet RatingGet RatingGet Rating
COKEGet RatingGet RatingGet Rating
HKHHYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for November?

The S&P 500 (SPY) tumbled to end October. Is that a harbinger of more downside to come? Or will the bull market return with gusto? Investment pro Steve Reitmeister shares his time market views including a preview of his favorite stocks. Get the full story below...

3 Cybersecurity Stocks Defending Against Digital Threats

The demand for cybersecurity solutions is rising as digital threats and sophisticated cyberattacks continue to escalate. Therefore, it might be wise to keep track of cybersecurity stocks, CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT), as they offer innovative solutions presenting further growth opportunities. Continue reading...

3 Oil Stocks With High Upside as Global Demand Rebounds

The outlook for oil demand growth appears promising despite economic uncertainties and worldwide supply deficit. Amid this, investing in quality oil stocks Enterprise Products Partners (EPD), Marathon Oil (MRO), and Plains All American Pipeline (PAA) could be ideal as global demand rebounds. Read more...

3 Tech Stocks Under $10 That Could Deliver Big Gains

The technology industry is booming, driven by breakthroughs and significant government investments. Thus, incorporating affordable tech stocks, Sprinklr (CXM), Sabre Corporation (SABR), and Cricut (CRCT) into your portfolio provides an accessible entry point to capitalize on the industry’s growth. Read more…

2 Concerns for Investors in October

The S&P 500 (SPY) may be touching all time highs...but recent action points to concerns on 2 fronts: inflation and earnings. Investment veteran Steve Reitmeister shares his views on these 2 timely topics along with a preview of his top stocks to buy now.

Read More Stories

More Splash Beverage Group Inc. (SBEV) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SBEV News