GICS Sector : Consumer Defensive
Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated and non-carbonated soft drinks in the United States and Canada.It offers soda, energy drinks, organic tea, mixers, kidz beverages, and sparkling water.The company offers its products through various retail channels, including grocery distributors, national retailers, warehouse club, and natural products retailers, as well as e-commerce channels.
Zevia PBC reported a robust Q3 2025 with net sales growing 12% to $40.8 million, while the adjusted EBITDA loss narrowed to $1.7 million. The actual EPS loss was $0.04, beating estimates of a $0.06 loss. The company's revenue growth was driven by effective marketing initiatives, new product launches, and expanded distribution across various channels, including Walmart, grocery, and club stores. The company's strategy focuses on high-impact brand marketing, accelerated product innovation, and expanded distribution, which is translating into double-digit gains in brand consideration and purchase intent.
Publication Date: Nov -17
The company has made significant progress in its distribution expansion, with Zevia becoming one of the primary brands in Walmart's modern service set, driving new-to-brand users. The company has also increased its shelf presence at retailers like Albertsons and is poised to continue growing distribution in various channels. The new packaging featuring "Soda Made Better" is expected to roll out in early 2026, which has shown a significant increase in purchase intent versus prior design and competition.
Zevia has a large runway for growth, with household penetration around 5% compared to the category's 20%. The company is focused on its soda business, aiming to become famous for being "Soda Made Better," which will create a halo effect for potential expansion into other categories like energy drinks. The company expects to achieve positive adjusted EBITDA in 2026, driven by scale and pricing opportunities, as well as $5 million in incremental savings from its productivity initiative. Analysts estimate next year's revenue growth at 6.7%.
With a P/S Ratio of 1.06 and an EV/EBITDA of -12.12, the market is pricing in significant growth expectations. The company's ROE and ROIC are negative, at -23.29% and -43.13%, respectively, reflecting its current loss-making position. However, as the company moves towards profitability, these metrics are expected to improve. The current valuation multiples suggest that the market is expecting a turnaround in the company's performance.
Zevia PBC (ZVIA) Q3 2025 Earnings Call Transcript
Nov -06
Zevia (ZVIA) Reports Q3 Loss, Tops Revenue Estimates
Nov -06
Zevia Announces Third Quarter 2025 Results
Nov -05
Zevia: Cheap For A Reason, But With Upside Potential
Oct -07
5 Soft Drink Stocks Battling for Relevance Amid Consumer Taste Shift
Sep -03
Zevia to Participate in 16th Annual Midwest IDEAS Investor Conference
Aug -19
Zevia PBC (ZVIA) Q2 2025 Earnings Call Transcript
Aug -07
Zevia (ZVIA) Reports Q2 Loss, Beats Revenue Estimates
Aug -06
Zevia PBC's retail segment growth is driven by increasing consumer demand for healthier, low-calorie beverages, expanding distribution channels, and strategic partnerships. The company's unique product offerings, such as zero-calorie sodas and sparkling waters, resonate with the growing health-conscious demographic. Additionally, Zevia's e-commerce platform and strong online presence contribute to its rapid growth.
Zevia PBC's 7% online/e-commerce growth is driven by increasing health-conscious consumers seeking natural, zero-calorie beverages. Expanding product offerings, strategic partnerships, and targeted digital marketing efforts have enhanced brand visibility. Additionally, the rise of online shopping and convenient delivery options have contributed to the segment's growth.
A line of zero-calorie, naturally sweetened sodas available in 14 flavors
A line of zero-calorie, naturally sweetened energy drinks available in 3 flavors
A line of zero-calorie, naturally sweetened mixers available in 4 flavors
A line of zero-calorie, naturally sweetened beverages designed for kids
A line of zero-calorie, naturally sweetened teas available in 4 flavors
Zevia PBC faces moderate threat from substitutes as consumers have limited options for natural and zero-calorie beverages. However, the company's unique product offerings and brand loyalty mitigate this threat.
Zevia PBC's customers have low bargaining power due to the company's strong brand presence and limited switching costs. Consumers are loyal to the brand, and the company's products are widely available.
Zevia PBC's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for natural ingredients. However, the company's scale and long-term contracts mitigate this risk.
Zevia PBC faces a high threat from new entrants due to the growing demand for natural and zero-calorie beverages. New entrants can easily enter the market, but the company's strong brand presence and distribution network provide a barrier to entry.
Zevia PBC operates in a highly competitive market with established players like Coca-Cola and PepsiCo. The company's unique product offerings and strong brand presence help it compete effectively, but the rivalry remains intense.
| Value | |
|---|---|
| Debt Weight | 2.12% |
| Debt Cost | 3.95% |
| Equity Weight | 97.88% |
| Equity Cost | 7.20% |
| WACC | 7.13% |
| Leverage | 2.17% |
Value: 1.6
Growth: 7.7
Quality: 7.8
Yield: 0.0
Momentum: 9.5
Volatility: 4.7
1-Year Total Return ->
Value: 8.0
Growth: 5.0
Quality: 4.5
Yield: 0.0
Momentum: 10.0
Volatility: 1.7
1-Year Total Return ->
Value: 9.5
Growth: 3.6
Quality: 5.8
Yield: 0.0
Momentum: 8.0
Volatility: 2.3
1-Year Total Return ->
Value: 6.9
Growth: 6.0
Quality: 3.1
Yield: 0.0
Momentum: 8.5
Volatility: 2.0
1-Year Total Return ->
Value: 6.4
Growth: 5.8
Quality: 4.1
Yield: 0.0
Momentum: 3.5
Volatility: 3.3
1-Year Total Return ->
Value: 8.8
Growth: 0.4
Quality: 3.6
Yield: 0.0
Momentum: 1.5
Volatility: 1.3
1-Year Total Return ->