3 Reasons Investors Want SodaStream

In the video below, Fool analyst Austin Smith highlights three reasons to buy SodaStream and its disruptive home carbonation system technology.

1. Great numbers
The company sells at about 20 times earnings despite a recent pop in the stock price. This is in line with valuations for Coca-Cola and PepsiCo. Unlike Coke or Pepsi, SodaStream enjoys a 50% top-line growth rate and carries no debt -- a rare combination for a growth company.

2. A sustainable business model
SodaStream employs a "razor and blades" model in which, after the initial sale of the carbonation device, consumers continue buying items such as bottles and CO2 cartridges. This helps maintain revenue.

3. Tailwinds
The company is coming off the 2012 holiday shopping season with more retailers than ever carrying its products in the U.S. market. Americans are looking for healthier drink alternatives and SodaStream offers this. Americans are also looking for greener alternatives, and SodaStream bottles are usable for two years rather than simply once like most soft drink bottles.

SodaStream's carbonation technology sounds simple, right? Well, this company offers an intriguing opportunity for growth that may be harder to duplicate than you might think. Our premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a year's worth of updates, so just click here to get started.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2221468, ~/Articles/ArticleHandler.aspx, 12/18/2014 10:16:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement