Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$43.43M
• Dividend Yield: N/A
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): 48.9
• Beta (1Y): 0.71
• Revenue Growth: 46.54%
• EPS Growth: 968.67%
• Country: CA
• Employees: 85
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.13
• Shares Outstanding: 9,544,552
• 10 Day Avg. Volume: 2,345
• 30 Day Avg. Volume: 12,097
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$4.50 ▲(2.04% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily driven by improving fundamentals—especially the sharp 2025 debt reduction and solid multi-year revenue growth—tempered by thin earnings and uneven cash flow. Technicals are mildly supportive with price above major moving averages, while the high P/E and mixed earnings-call risks (volatility, tariffs, rising costs) cap the overall score.

Positive Factors

Proprietary Swiss Water Process

The proprietary, chemical-free Swiss Water Process is a durable competitive advantage: it allows customers to market solvent-free decaf, supports premium and specialty demand, creates switching costs for brand-conscious roasters, and underpins steady fee-for-service revenue tied to processing volume.

Multi-year Revenue Expansion

Sustained revenue growth from ~$98M to ~$259M over several years signals durable market demand and successful scale-up. Higher volumes improve fixed-cost absorption and support operating leverage, making future margin improvements and capacity utilization gains more achievable over a multi-quarter horizon.

Material Deleveraging

A sharp reduction in total debt meaningfully lowers financial risk and interest expense, improving flexibility for reinvestment, capital allocation, and weathering commodity cycles. If sustained, the improved capital structure strengthens long-term resilience and credit optionality.

Negative Factors

Thin Profitability

Net income is very small relative to the revenue base, indicating thin margins and limited earnings power. This low profitability provides a narrow cushion against commodity price swings, cost inflation, or demand shocks, raising the risk that modest adverse moves could materially hit reported earnings.

Volatile Cash Generation

Inconsistent operating cash flow and uneven free cash flow growth constrain reliable reinvestment and make planning for capex or sustained debt reduction harder. Volatility increases reliance on good quarters to fund strategic initiatives and elevates refinancing or liquidity risk during down cycles.

Supply-chain / Tariff Exposure

Exposure to country-level trade policy (eg, a 50% Brazilian tariff) creates structural sourcing risk for green coffee supply, raising costs and forcing ongoing adjustments to procurement. Persistent trade barriers or supplier dislocations can erode margins and complicate long-term capacity planning.

Swiss Water Decaffeinated Coffee Inc Business Overview & Revenue Model

Company Description

Swiss Water Decaffeinated Coffee Inc. operates as a green coffee decaffeinator in Canada, the United States, and internationally. It decaffeinates and sells green coffees to specialty roaster retailers, specialty coffee importers, and commercial coffee roasters, as well as sells coffees through regional distributors. The company decaffeinates coffees without the use of chemicals. It also provides a range of green coffee logistics services, including devanning coffee received from origin; inspecting, weighing, and sampling coffees; and storing, handling, and preparing green coffee for outbound shipments. In addition, the company handles and stores coffees for various other coffee importers and brokers. The company was formerly known as Ten Peaks Coffee Company Inc. and changed its name to Swiss Water Decaffeinated Coffee Inc. in September 2018. Swiss Water Decaffeinated Coffee Inc. is headquartered in Delta, Canada.

How the Company Makes Money

SWP primarily makes money by providing fee-for-service decaffeination of green coffee. Customers (such as coffee roasters, coffee brands, and traders) send or source green coffee that is then processed at SWP’s facility using the Swiss Water Process; SWP earns revenue by charging for the decaffeination service and related processing/handling. A key feature of the model is that the value proposition—solvent-free decaffeination and the ability to market coffee as decaffeinated via the Swiss Water Process—supports demand from premium and specialty coffee customers. Revenue is therefore driven by processed volume (pounds/kilograms of green coffee decaffeinated), customer mix (specialty/premium vs. mainstream), and capacity utilization/throughput at its processing operations. Any specific information on pricing terms, major customer concentration, or named partnerships is null.

Swiss Water Decaffeinated Coffee Inc Financial Statement Overview

Summary

Revenue growth has been meaningful over multiple years and the 2025 deleveraging (debt down sharply to ~$27M) reduces financial risk. Offsetting this, profitability remains thin (small 2025 net income and a 2023 loss) and cash flow has been volatile despite positive FCF in 2023–2025.

Income Statement

Revenue has expanded meaningfully over the last several years (2020: ~$98M to 2025: ~$259M), with a strong rebound in 2025 (+6.9% YoY) after a dip in 2023. Profitability is mixed: gross profit dollars are steady but margins appear relatively thin, and net income remains small (2025: ~$1.6M) with a loss in 2023. Operating profit improved versus 2023, but overall earnings power looks modest relative to the revenue base, suggesting limited cushion if costs rise or pricing weakens.

Balance Sheet

Leverage has improved materially in the latest period, with total debt dropping to ~$27M in 2025 from ~$116–118M in 2022–2024, which meaningfully reduces financial risk. Equity is fairly stable (~$55–59M) and assets are steady (~$209M in 2025). The key historical weakness is that, prior to 2025, debt was consistently high versus equity (around ~2x in 2022–2024), limiting balance-sheet flexibility; the 2025 deleveraging is a major positive but would benefit from confirmation it is durable.

Cash Flow

Cash generation has been volatile. Operating cash flow swung from negative in 2021–2022 to very strong in 2023 (~$30.5M), then moderated to ~$2.1M in 2024 and improved to ~$7.3M in 2025. Free cash flow is positive in 2023–2025 (2025: ~$6.0M), but 2021–2022 were materially negative, and growth in free cash flow is inconsistent (notably down in 2024 and showing a large negative growth rate in 2025 versus prior year). Overall, cash flow supports operations but lacks steady consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	258.72M	173.13M	166.28M	176.94M	125.08M
Gross Profit	26.59M	26.19M	18.80M	26.09M	17.61M
EBITDA	12.06M	17.83M	16.59M	20.42M	12.89M
Net Income	1.56M	1.27M	-528.00K	2.39M	496.00K
Balance Sheet
Total Assets	208.86M	216.92M	200.34M	219.04M	168.25M
Cash, Cash Equivalents and Short-Term Investments	6.61M	8.51M	11.09M	3.76M	4.25M
Total Debt	26.96M	117.60M	116.58M	115.68M	88.57M
Total Liabilities	150.13M	162.05M	144.48M	164.13M	112.65M
Stockholders Equity	58.73M	54.87M	55.86M	54.91M	55.59M
Cash Flow
Free Cash Flow	6.00M	1.18M	10.63M	-27.01M	-20.09M
Operating Cash Flow	7.32M	2.14M	30.55M	-1.04M	-6.38M
Investing Cash Flow	-1.32M	-963.00K	-19.55M	-24.61M	-13.72M
Financing Cash Flow	-7.91M	-3.75M	-3.67M	25.16M	21.59M

Swiss Water Decaffeinated Coffee Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SWP, the sentiment is Positive. The current price of 4.41 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.48, and above the 200-day MA of 4.30, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SWP.

Swiss Water Decaffeinated Coffee Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAP	70 Outperform	C$17.25B	19.22	-1.32%	1.89%	5.37%	-135.85%
PBH	69 Neutral	C$4.89B	-573.63	3.86%	3.34%	13.05%	-33.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SWP	57 Neutral	C$43.43M	48.94	4.23%	―	46.54%	968.67%
BU	47 Neutral	C$27.29M	-1.45	-1208.82%	―	190.07%	-2.88%
NPRA	44 Neutral	C$11.31M	33.38	―	―	69.12%	43.02%

Swiss Water Decaffeinated Coffee Inc Corporate Events

Swiss Water Grows Revenue in Volatile Coffee Market but Feels Margin Pressure

Swiss Water reported fiscal 2025 results showing a 2% increase in processed volumes and a 49% jump in revenue to $258.7 million, but net income remained modest at $1.6 million while adjusted EBITDA fell 21% amid extreme volatility in Arabica coffee futures and market inversion costs. The company strengthened its balance sheet by expanding its operating credit facility to $80 million, repaying construction debt, and repurchasing warrants from Mill Road Capital, while navigating shifting U.S. tariff conditions and seeing cautious but improving purchasing activity as coffee prices begin to normalize.

In the fourth quarter, processed volumes dipped 2%, revenue climbed 34% to $66.0 million, and net income declined to $1.2 million as higher coffee prices and timing differences in recovering inversion costs pressured profitability. Management highlighted a return to a tariff-free operating model from November 2025 and said strategies are in place to manage future tariff exposure, positioning Swiss Water to pursue growth and debt reduction as customer demand for its chemical-free decaffeination process remains resilient.

The most recent analyst rating on (TSE:SWP) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on Swiss Water Decaffeinated Coffee Inc stock, see the TSE:SWP Stock Forecast page.