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Coffee Holding Co. (JVA)
NASDAQ:JVA

Coffee Holding Co (JVA) AI Stock Analysis

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JV

Coffee Holding Co

(NASDAQ:JVA)

75Outperform
Coffee Holding Co has a strong financial performance with significant revenue growth and efficient cash management. Technical indicators show positive momentum, supporting the stock's upward trend. While the valuation is reasonable, the lack of a dividend yield might be a downside for income investors. Overall, the company shows promise with low financial risk and room for operational improvements.

Coffee Holding Co (JVA) vs. S&P 500 (SPY)

Coffee Holding Co Business Overview & Revenue Model

Company DescriptionCoffee Holding Co., Inc. is wholesale coffee roaster and dealer in the U.S. Its products are divided into three categories: Wholesale Green Coffee, Private Label Coffee and Branded Coffee. The Wholesale Green Coffee consists of unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators. The Private Label Coffee offers coffee roasted, blended, packaged, and sold under the specifications and names of others, including supermarkets that want to have their own brand name on coffee to compete with national brands. The Branded Coffee consists of coffee roasted, blended, packaged and sold under its own proprietary and licensed brand names in different segments of the market. The company offers its products Cafe Caribe, S&W Premium, Cafe Supremo, Premium Roasters, and Via Roma brands. Coffee Holding was founded by Sterling A. Gordon in 1971 and is headquartered in Staten Island, NY.
How the Company Makes MoneyCoffee Holding Co. generates revenue primarily through the sale of wholesale coffee products. Its key revenue streams include the sale of green coffee beans to roasters, private label coffee production for various retailers, and the distribution of its proprietary brands. The company benefits from strategic relationships with coffee growers and importers, which helps it secure a steady supply of high-quality coffee beans. Additionally, its diverse product range allows it to cater to different customer segments, from large supermarket chains to specialized coffee shops, contributing to its earnings.

Coffee Holding Co Financial Statement Overview

Summary
Overall, Coffee Holding Co shows a positive financial outlook with strong revenue growth, improved profitability, and efficient cash flow management. The company maintains a stable financial position with low leverage, but there are opportunities to enhance operational margins and improve return on equity.
Income Statement
75
Positive
Coffee Holding Co has shown strong revenue growth with a 15.23% increase from the previous year, indicating a positive trajectory. The gross profit margin is 20.4%, and the net profit margin has significantly improved from a negative value to 2.82%, reflecting an enhancement in profitability. However, the EBIT and EBITDA margins are relatively modest at 3.77%, indicating room for operational efficiency improvements.
Balance Sheet
70
Positive
The company's balance sheet shows a favorable equity ratio of 76.98%, indicating financial stability. The debt-to-equity ratio is low at 0.04, suggesting low financial leverage, which reduces financial risk. Return on equity is modest at 8.47%, showing a decent return on invested capital but with potential for improvement.
Cash Flow
80
Positive
Coffee Holding Co has demonstrated strong cash flow performance. The operating cash flow to net income ratio is 2.45, suggesting efficient cash generation relative to net income. The free cash flow has grown positively, indicating effective cash management. The free cash flow to net income ratio is also robust at 2.45, highlighting strong cash flow coverage.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
78.56M68.17M65.71M63.92M74.34M
Gross Profit
16.04M10.96M11.01M16.02M13.08M
EBIT
2.96M-1.33M-2.57M1.45M-192.58K
EBITDA
4.23M375.18K-4.11M2.31M946.72K
Net Income Common Stockholders
2.22M-835.58K-4.60M867.68K-336.04K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.38M2.73M2.52M3.70M2.88M
Total Assets
34.01M42.19M42.69M43.31M38.48M
Total Debt
1.17M12.86M12.56M7.46M6.08M
Net Debt
-207.99K10.12M10.04M3.76M3.21M
Total Liabilities
7.83M18.48M18.14M13.94M10.74M
Stockholders Equity
26.18M23.96M24.80M28.53M26.52M
Cash FlowFree Cash Flow
5.43M-205.68K-6.50M3.21M3.95M
Operating Cash Flow
5.43M652.08K-5.44M4.71M4.39M
Investing Cash Flow
2.84M-857.76K-1.06M-3.89M-537.84K
Financing Cash Flow
-9.63M423.78K5.32M-1.05K-3.38M

Coffee Holding Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.13
Price Trends
50DMA
4.94
Positive
100DMA
4.23
Positive
200DMA
3.23
Positive
Market Momentum
MACD
0.76
Negative
RSI
56.55
Neutral
STOCH
49.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JVA, the sentiment is Positive. The current price of 7.13 is above the 20-day moving average (MA) of 6.35, above the 50-day MA of 4.94, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 49.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JVA.

Coffee Holding Co Risk Analysis

Coffee Holding Co disclosed 26 risk factors in its most recent earnings report. Coffee Holding Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Coffee Holding Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
JVJVA
75
Outperform
$40.70M18.358.85%15.24%
67
Neutral
$113.11B32.68-47.07%2.33%-1.48%-17.32%
63
Neutral
$20.76B13.76-10.60%7.37%1.45%9.35%
61
Neutral
$50.18M-23.75%-9.51%83.29%
THTHS
54
Neutral
$1.55B56.871.67%-4.59%-42.81%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JVA
Coffee Holding Co
6.49
5.17
391.67%
FARM
Farmer Brothers Company
2.35
-1.10
-31.88%
SBUX
Starbucks
98.69
9.36
10.48%
THS
TreeHouse Foods
30.59
-6.37
-17.23%

Coffee Holding Co Corporate Events

M&A TransactionsBusiness Operations and Strategy
Coffee Holding Co. Acquires Empire Coffee Assets
Positive
Nov 12, 2024

Coffee Holding Co., Inc. has announced the acquisition of assets from Empire Coffee Company, aiming to boost operations and return to pre-Covid levels of revenue. The $800,000 purchase includes inventory, equipment, and intellectual property, with plans to optimize cost savings and enhance manufacturing. Coffee Holding’s strategic move is expected to strengthen its position in the coffee market while capitalizing on growth opportunities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.