By Stone Fox Capital:
Prior to the open on Wednesday, SodaStream International (SODA) reported earnings that again smashed analyst estimates. The stock plunged though the rest of the week as investors were apparently disappointed with guidance of 25% earnings growth on a 15 forward multiple. Ironically, the forward multiple now trades below that of soda market leaders The Coca-Cola Company (KO) and PepsiCo Inc. (PEP).
The company is a leading manufacturer of home beverage carbonation systems sold at major retailers around the world.
The stock has historically traded at sub-growth rate multiples for various reasons. The question is whether the stock will reach multiples compared to its historical and forecasted growth rates or remain at a cheap valuation that appears crazy.
Q4 Highlights
Below are the highlights from the Q4 earnings report:
Total revenue increased 55.2% to $132.9 million from $85.7 million in the fourth quarter 2011.
Adjusted net income was $9.4
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