Breaking Down National Beverage Corp. (FIZZ) Financial Health: Key Insights for Investors

You're looking at National Beverage Corp. (FIZZ) and seeing a company that just wrapped a strong fiscal 2025, but the market's reaction is defintely telling a different story, so we need to cut through the noise. The headline numbers look great: FIZZ reported full-year net sales of $1.2 billion, with operating income climbing 7.8% to $235 million, and earnings per share (EPS) hitting $2.00. That's solid growth, driven partly by their LaCroix brand innovations like Sunshine and Cherry Lime. But here's the quick math: Despite this performance, Wall Street's consensus rating is a "Strong Sell" or "Reduce," with an average price target of just $39.00 as of late 2025. That disconnect-a strong balance sheet with cash recently jumping to $250 million versus a bearish analyst outlook-is what makes FIZZ a tricky investment right now. We need to figure out which trend wins: the strong operational execution or the valuation risk.

Revenue Analysis

You want to know where National Beverage Corp. (FIZZ) makes its money and how fast that engine is running. The direct takeaway is that FIZZ is a slow-growth, high-margin business, with its sparkling water portfolio, led by LaCroix, providing the essential fuel. The company posted full-year fiscal 2025 net sales of approximately $1.2 billion, showing modest but deliberate growth.

For the fiscal year ended May 3, 2025, the annual revenue growth rate was a precise 0.81%, which is a slight deceleration from prior periods but still marks a record high in net sales. This tells me the company is prioritizing margin expansion and brand innovation over aggressive volume-at-all-costs strategies. It's a stable, cash-generating machine, not a hyper-growth startup. Here's the quick math: net sales grew from $1,191,694 thousand in FY2024 to $1,201,354 thousand in FY2025.

Primary Revenue Sources: The Power+ Brands Portfolio

National Beverage Corp. operates with two main categories: its 'Power+ Brands' and its traditional carbonated soft drinks (CSDs). The Power+ Brands are the clear revenue drivers, and within that group, LaCroix sparkling water is the undisputed heavyweight champion, providing the most significant contribution to overall revenue and volume growth. Honestly, LaCroix is the story here.

The company specifically highlighted that both its Power+ Brands and its CSDs posted volume increases in the fourth quarter of fiscal 2025, a positive sign in a challenging consumer environment. The entire portfolio is built on a few core segments:

• LaCroix Sparkling Water: The primary revenue engine, driving growth through innovation and premium positioning.
• Rip It Energy Fuel: A key brand in the energy drink market, catering to a specific consumer base.
• Shasta and Faygo: The core of the traditional carbonated soft drink (CSD) business.

While the company doesn't break out the exact dollar contribution for each brand like LaCroix versus Shasta, the strategic focus and marketing spend clearly indicate where the money is being made. The gross margin for the fiscal year was a healthy 37.0% of sales, which is a strong indicator of pricing power, especially within the LaCroix segment.

Near-Term Revenue Shifts and Growth Stimuli

The most significant change in the revenue stream mix for fiscal year 2025 was driven by LaCroix's product cadence and marketing investment. The company is actively trying to stimulate demand in the sparkling water category, which has seen increased competition. What this estimate hides is the true concentration risk: if LaCroix stumbles, the entire revenue profile suffers.

The introduction of new flavors-Sunshine, Cherry Lime, and Blackberry Cucumber-starting in the fourth quarter of FY2025 was a deliberate move to reignite volume growth. Plus, the expanded marketing efforts, like the LaCroix Summer bus tour and partnerships with professional sports teams such as the WNBA's Indiana Fever and Dallas Wings, are all designed to convert brand awareness into sales volume.

To better understand the key players backing this strategy, you might want to look into Exploring National Beverage Corp. (FIZZ) Investor Profile: Who's Buying and Why?

The company is defintely leaning into its premium brands to maintain that margin. The key action for you is to monitor the sales velocity of those new LaCroix flavors over the next two quarters; that will be the real test of this revenue strategy.

Profitability Metrics

When you look at National Beverage Corp. (FIZZ), the first thing that jumps out is their impressive profitability, which is a clear signal of strong brand power and tight cost management. For the fiscal year ended May 3, 2025, the company delivered annual net sales of $1.2 billion, showcasing a solid, if not explosive, top line.

Their margins tell the real story of operational efficiency, especially when you compare them to the non-alcoholic beverage industry's averages from the first quarter of 2025. Honestly, FIZZ is doing something defintely right in turning revenue into bottom-line profit.

Here's the quick math on their key profitability ratios for the 2025 fiscal year:

• Gross Profit Margin: The margin landed at 37.0% of sales, which is a strong figure, showing effective cost of goods sold (COGS) control.
• Operating Profit Margin: This margin was approximately 19.6% ($235 million in operating income divided by $1.2 billion in sales).
• Net Profit Margin: With a net income of $186.8 million, the net profit margin was about 15.6% (or 16%), reflecting the high profit retention after all expenses and taxes.

FIZZ's Margin Advantage Over the Industry

The company's performance on the bottom half of the income statement-Operating and Net Profit-is where they truly differentiate themselves from the broader non-alcoholic beverage market. While the industry average for Gross Profit Margin in the first quarter of 2025 was a high 57.93%, FIZZ's 37.0% suggests a different business model, likely due to owning more of their manufacturing and distribution, which increases COGS but allows for greater control.

But here is the kicker: FIZZ's Operating Margin of 19.6% and Net Profit Margin of 15.6% significantly outperform the industry average net margin of 10.90%. This signals that National Beverage Corp. has a much leaner structure for its selling, general, and administrative (SG&A) expenses, which is the hallmark of a well-run, focused company.

You can see the clear comparison in the table below:

Operational Efficiency and Margin Trends

The trend shows management is focused on margin expansion, not just volume growth. National Beverage Corp.'s gross margin actually increased to 37.0% in fiscal year 2025, and operating income grew 7.8% to $235 million. This increase in gross margin suggests they are successfully managing input costs or realizing price/mix improvements, even in a tough inflationary environment. This is a sign of pricing power, a critical competitive advantage.

The consistent improvement in operating margins, which grew for the eighth consecutive quarter in the second quarter of the 2025 fiscal year, shows a deliberate, long-term operational focus. This operational efficiency is what allows them to translate a lower gross margin into a superior net profit margin compared to the industry. They run a tight ship. For a deeper look at the company's full financial picture, check out Breaking Down National Beverage Corp. (FIZZ) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

If you're looking at National Beverage Corp. (FIZZ), the first thing you notice is a capital structure that screams financial conservatism. This is a company that prefers to fund its operations and growth through retained earnings and shareholder equity, not debt. It's a classic low-leverage model.

For the quarter ending July 2025, National Beverage Corp.'s total debt-the sum of all short-term and long-term obligations-stood at just $69.9 million. That is a tiny number for a company of this size, and it's mostly comprised of long-term liabilities.

Here's the quick math on their debt breakdown as of July 2025:

• Short-Term Debt (Current Portion): $15.009 million
• Long-Term Debt: $54.895 million

The company is sitting on a net cash position of roughly $179.93 million (cash of $249.83 million minus total debt of $69.90 million). That's a fortress balance sheet, defintely. They have the cash to wipe out all their debt and still have a significant war chest left over.

Debt-to-Equity Ratio: A Clear Outlier

The clearest way to see National Beverage Corp.'s financial philosophy is through its debt-to-equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of shareholders' equity. As of July 2025, National Beverage Corp.'s D/E ratio was an incredibly low 0.14.

To put that into perspective, the average Debt-to-Equity ratio for the Non-Alcoholic Beverages industry is around 0.79 as of November 2025. National Beverage Corp. is operating with a fraction of the leverage of its peers. This means the risk of financial distress from interest payments or loan covenants is practically nonexistent. It also means they are not using financial leverage (borrowing money to boost returns on equity) to the extent that most competitors do. This is a trade-off: lower risk, but potentially lower return amplification.

Balancing Debt and Equity Funding

National Beverage Corp.'s approach to financing is straightforward: use cash flow and equity, and keep debt as a safety net. The company maintains an unsecured revolving credit facility of $100 million that is mostly undrawn, which is a smart way to ensure liquidity without incurring interest expense. They aren't issuing new bonds or refinancing debt because they don't need to. The most recent external financial rating, a 'hold (C-)' from Weiss Ratings in November 2025, focuses on the stock's valuation rather than any debt-related risk, which is a testament to their balance sheet strength.

Instead of debt financing, the company's capital allocation strategy focuses heavily on returning cash to shareholders, which is an equity-based funding mechanism. They have a history of paying out special cash dividends, like the $3.25 per share declared in 2024, and they initiated an open market stock buyback program in October 2025. This buyback signals management's confidence and is a clear alternative to leveraging the balance sheet for growth. They are saying, 'We have superior cash flows, and the best use of that cash is to reduce our equity base and increase your ownership stake.' You can read more about the company's financial health in Breaking Down National Beverage Corp. (FIZZ) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You want to know if National Beverage Corp. (FIZZ) has the cash to cover its short-term bills, and the simple answer is a resounding yes. The company's liquidity position for the fiscal year 2025 is defintely strong, driven by high current and quick ratios, which signals a healthy cushion against near-term obligations.

For the fiscal year ending April 2025, National Beverage Corp.'s Current Ratio stood at a robust 2.9. That means for every dollar of current liabilities (bills due in the next year), the company had $2.90 in current assets (cash, receivables, inventory) to cover it. The Quick Ratio, which is a more conservative measure that strips out inventory, was also excellent at 2.1x for the same period. A ratio over 1.0 is generally good, so these figures show a significant liquidity strength.

Here's the quick math on what those ratios mean for working capital (Current Assets minus Current Liabilities):

• Current Ratio of 2.9 (Apr 2025).
• Quick Ratio of 2.1x (FY 2025).
• Working capital is positive and substantial, a clear strength.

The trend in working capital is strong, and the high Quick Ratio of 2.1x is particularly reassuring because it shows the company can meet most of its immediate debts without having to sell off inventory. Still, it's worth noting the Current Ratio of 2.9 in April 2025 was a drop from the prior year's 3.89, a change of -25.6%. This is a contraction, but the absolute level remains far above any concern threshold.

When you look at the cash flow statement for fiscal year 2025, the picture is one of a mature, profitable business returning capital to shareholders. Cash Flow from Operating Activities (CFO) was a strong inflow of $206.70 million. This is the cash generated from the core business-selling LaCroix and other beverages-and it's the lifeblood of the operation. This is a primary source of strength.

The other two cash flow sections show how that cash is being used:

• Investing Cash Flow: A net outflow of -$36.27 million. This is primarily capital expenditures (CapEx) for plant, property, and equipment, with an anticipated full-year spend in the range of $25 million to $30 million. This level of spending is manageable and necessary for maintaining and improving production capacity.
• Financing Cash Flow: A large net outflow of -$303.63 million. This is the key difference-maker. The massive negative number is not a sign of distress; it's due almost entirely to the special cash dividend of $304.1 million paid in July 2024 (which falls in the 2025 fiscal year). The company is converting its profits into cash and then distributing it to shareholders.

What this cash flow analysis tells you is that National Beverage Corp. is generating ample cash from its operations to cover its capital spending and still have a significant amount left over for shareholder returns. The primary liquidity strength is the consistent, high-margin operating cash flow and the minimal reliance on debt, which you can read more about in the full post: Breaking Down National Beverage Corp. (FIZZ) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at National Beverage Corp. (FIZZ) and wondering if the market has it right, especially after a tough year for the stock. The direct takeaway is that while the stock trades at a premium on a Price-to-Book (P/B) basis, its Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios suggest a more moderate, though still full, valuation compared to its historical averages. The market is defintely trying to reconcile a high-margin business with recent growth concerns.

As of November 2025, the stock closed at around $34.28, which is a significant drop. Over the last 12 months, the stock price has decreased by over 31.26%, moving from a 52-week high of $50.51 down toward its 52-week low of $32.21. That kind of volatility tells you investors are worried about something, likely the competitive landscape for LaCroix sparkling water.

Here's a quick look at the core valuation multiples based on 2025 fiscal year data:

• Price-to-Earnings (P/E) Ratio: The trailing P/E is about 17.31. This is below the stock's historical average, but the forward P/E of 16.67 suggests analysts expect only a modest earnings improvement.
• Price-to-Book (P/B) Ratio: At approximately 6.30, this is where National Beverage Corp. looks expensive. It signals that the market values the company's brand power and intellectual property-its intangible assets-far more than its physical book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA stands at 11.76. This is a reasonable multiple for a consumer staples company with strong margins, showing a more balanced view of the company's operating performance, regardless of its capital structure.

The valuation picture is mixed. The low P/E and EV/EBITDA multiples relative to the broader market for a high-margin beverage company could argue for being undervalued, but the P/B ratio screams premium. It's a classic case of a capital-light business model where the balance sheet doesn't tell the whole story. You can see how the company's operating philosophy drives this in their Mission Statement, Vision, & Core Values of National Beverage Corp. (FIZZ).

Dividend and Analyst Sentiment

National Beverage Corp. doesn't pay a regular quarterly dividend, but it has a history of issuing large, special dividends. For the 2025 fiscal year, the reported dividend yield was a substantial 7.3%, with an unsustainable payout ratio of 162.8%. This high payout ratio confirms that the distribution was a special dividend, not a recurring income stream. It's a way to return capital to shareholders without committing to a fixed, regular payout.

On the analyst front, the consensus is definitively cautious. The single analyst covering the stock has a 'Strong Sell' rating, with a 12-month price target of $39 as of September 2025. This target suggests a potential upside of about 13.7% from the current price, which is an interesting contradiction: a 'Strong Sell' rating with a target price well above the current trading level. This often indicates a belief that the stock is fundamentally overvalued despite the recent price drop, but that a short-term rebound is possible, or simply that the risk-reward profile is poor.

To summarize the core metrics:

The action here is clear: don't chase the special dividend yield, and don't ignore the P/B premium. The stock is priced for a growth rate it hasn't consistently delivered recently. You need to see a clear path to renewed growth in their core sparkling water segment to justify that P/B ratio.

Risk Factors

You're looking at National Beverage Corp. (FIZZ) and seeing a company with a fortress balance sheet-$327 million in cash and equivalents and essentially zero debt as of the end of fiscal year 2025. That's a huge strength, but even the healthiest companies face real headwinds. The primary risks for National Beverage Corp. are external, centered on intense competition and the ever-fickle consumer. You need to map these near-term risks to your investment thesis, because they directly affect volume and margin.

The biggest external risk is market competition. National Beverage Corp. pioneered the sparkling water boom with LaCroix, but now it's fighting giants. Major rivals like Coca-Cola (with AHA) and PepsiCo, plus an explosion of private-label brands, are all aggressively vying for shelf space. This competition is already pressuring sales volume; the company saw volume declines in Q2 and Q3 of fiscal year 2025, though Q4 did see a gain.

Operationally, the company faces a concentration risk, which is a big deal. LaCroix is the star, accounting for well over 80% of the company's revenue. If consumer tastes defintely shift away from LaCroix, or if a major competitor launches a disruptive product, the impact on National Beverage Corp.'s financial health would be immediate and severe. Also, the consolidation of the retail customer base-fewer, larger grocery chains-gives those customers more power to demand lower pricing, which limits National Beverage Corp.'s ability to raise prices.

Here's a quick breakdown of the core risks we see:

• Intense Competition: Aggressive marketing and discounting from multinational rivals and private labels.
• Volume Decline: Despite price increases, case volumes have been flat or declining in recent quarters, suggesting market share loss.
• Input Cost Volatility: Fluctuations in raw material costs, like aluminum for cans, can impact the cost of sales, which rose by 2.9% per case recently.
• Regulatory Changes: The heavily regulated beverage industry means compliance with new environmental or health standards could increase capital expenditures and operational costs.

The good news is the company is not sitting still. Their primary mitigation strategy is relentless product innovation and marketing to drive volume. They launched new LaCroix flavors like Sunshine, Cherry Lime, and Blackberry Cucumber in Q4 2025, which helped drive a 5.5% revenue increase in that quarter. They are also strategically hedging raw material costs to mitigate supply chain risk. Furthermore, management signaled confidence by initiating an open-market share buyback program in late 2025.

The financial strength provides a cushion. With a current ratio of 3.24 and a strong operating cash flow of approximately $207 million for FY 2025, the company has the liquidity to weather a few tough quarters and continue investing in its brands. You can read more about their core philosophy here: Mission Statement, Vision, & Core Values of National Beverage Corp. (FIZZ).

Their focus on innovation and brand building is a long-term play, but it comes with a short-term cost: Selling, General, and Administrative (SG&A) expenses rose to $54.7 million in Q1 2026, driven by higher marketing costs. This is a trade-off: you sacrifice a little near-term margin for long-term brand equity.

Your action item is to watch the volume trends in the next two quarters. If the new flavors and increased marketing don't translate into sustained volume growth, the current strategy isn't working, and the stock's valuation-which has been under pressure-will continue to suffer.

Growth Opportunities

You're looking at National Beverage Corp. (FIZZ) and wondering where the growth comes from next, especially with the sparkling water market getting crowded. The short answer is that the company is doubling down on its core strengths: product innovation and brand discipline. They are not chasing big acquisitions; they are focused on selling more of their flagship LaCroix brand at better margins.

The company's fiscal year 2025 performance offers a clear roadmap. Full-year revenue hit $1.20 billion, with earnings per share (EPS) surging to $2.00. That EPS jump, up from $1.89 in FY 2024, shows their focus on operational efficiency is defintely paying off. Looking ahead, management anticipates revenue will surpass $1.25 billion for the upcoming fiscal year, with EPS projected to reach approximately $2.10. That's modest growth, but it's high-quality growth driven by internal improvements.

Here's the quick math on their near-term outlook:

What this estimate hides is the power of their brand-building. They are investing between $25 million and $30 million in capital expenditures to support innovation and marketing, not on buying other companies. It's an organic growth strategy, and it hinges on a few key actions.

• Launch new LaCroix flavors like Sunshine, Cherry Lime, and Blackberry Cucumber (all rolled out in Q4 2025).
• Expand marketing with sports partnerships (WNBA, NHL, soccer teams) and experiential bus tours.
• Continue testing a rumored "game-changing" sparkling water innovation that could redefine the category.

The company's competitive advantage isn't just a popular flavor. It's their unique structure. National Beverage Corp. maintains control over most of its production and distribution, which gives them 'speed to market' for new flavors and helps them manage costs better than rivals with complex supply chains. This vertical integration is a big reason their gross profit for FY 2025 was a strong $443.9 million. Plus, the balance sheet is rock-solid, ending FY 2025 with $327 million in cash and zero debt. That financial health, combined with a stellar Return on Equity of 42% in FY 2025, provides the flexibility to weather market shifts and fund future growth. For a deeper look at their philosophy, check out their Mission Statement, Vision, & Core Values of National Beverage Corp. (FIZZ).