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Will FIZZ Pop To $100 A Share?

Apr. 12, 2018 5:01 PM ETNational Beverage Corp. (FIZZ)MNST24 Comments
David C. Kim profile picture
David C. Kim


  • National Beverage has had a great run.  Can it go higher?
  • Based on a comparison of key metrics against peers, I believe FIZZ has upside in its share price.
  • The intrinsic value of FIZZ easily exceeds $100 and could be higher.


Do you drink bottled water? I remember a former work colleague who used to rave about LaCroix, a top-selling sparkling water brand in the U.S. Taking a quick break from our office cubes, we'd walk over to the company kitchen that was stocked with various soft drinks and waters. You'd find Coca-Cola (KO) there. We liked drinking Coke. But, there was also LaCroix, and my friend was crazy about it.

LaCroix is a water brand of National Beverage Corp. (NASDAQ:FIZZ). FIZZ also bottles and markets juices, energy & sports drinks, teas and lemonades, carrying what I would assert are lesser-known brands like Shasta, Faygo, or Rip It.

Source: National Beverage corporate website

First of all, what's with the name? Is LaCriox French? No. It's actually a Midwest company. According to a Wikipedia entry on the topic, the sparkling water was first introduced in Wisconsin. The article also suggests that the water drink became more popular outside of the Midwest in more recent years, especially following a re-design of the brand. I love the name. It's like Haagen-Dazs. It's an American company, but it sounds so exotic, like some French-speaking Caribbean island. You can just picture yourself on the beach, popping one open and hearing the fizz.

Enough of that.

National Beverage is a relatively small company, and I believe it is an overlooked long idea. What I'm really here to do for you is to dig into the financial metrics, and share a sense of how much this water company is worth.

Metrics & Comps

What exactly is the margin on selling canned water? Good question. I've got an answer for you.

Gross Margins

National Beverage's trailing four-year gross margins were in the mid to upper 30%-range. Doesn't sound too bad, does it? Actually, it's not great. Gross margins for Coke, Dr Pepper Snapple Group (

This article was written by

David C. Kim profile picture
David is a tech venture portfolio manager by day.  David is the author of "Save Money, Get Rich: The Low Cost, Low Tax Way," available on Amazon.David's financial experience includes SEC auditing as a Big Four CPA, working for Fortune 50 corporate finance group, and advising tech startups.  David has an MBA and lives in Seattle with his wife. David enjoys investing, writing, and running.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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