Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$40.56M
• Dividend Yield: N/A
• Average Volume (3M): 7.83K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.57
• Revenue Growth: 41.69%
• EPS Growth: 134.37%
• Country: CA
• Employees: 85
• Sector: Consumer Defensive
• Sector Strength: 49
• Industry: Packaged Foods
• EPS (TTM): -0.10
• Shares Outstanding: 9,544,552
• 10 Day Avg. Volume: 4,433
• 30 Day Avg. Volume: 7,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$4.50
• Price Target Upside: 5.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: C$4.50 ▲(5.88% Upside)

Swiss Water Decaffeinated Coffee Inc's overall stock score is driven by strong revenue growth and strategic initiatives. However, high leverage, negative cash flow, and valuation concerns weigh down the score. The technical analysis provides a neutral outlook, while the mixed sentiment from the earnings call reflects both opportunities and challenges.

Swiss Water Decaffeinated Coffee Inc Business Overview & Revenue Model

Company Description

Swiss Water Decaffeinated Coffee Inc (SWP) is a Canadian company specializing in the production of high-quality decaffeinated coffee. The company utilizes a proprietary, chemical-free water process to remove caffeine from coffee beans while preserving the beans' flavor and aroma. Operating within the beverage industry, Swiss Water is renowned for its commitment to sustainability, quality, and innovation in decaffeination technology.

How the Company Makes Money

Swiss Water Decaffeinated Coffee Inc generates revenue primarily through the sale of decaffeinated coffee products to coffee roasters, retailers, and specialty coffee brands. The company’s proprietary Swiss Water Process, which is chemical-free and environmentally friendly, appeals to health-conscious and eco-minded consumers, giving it a competitive edge. Swiss Water collaborates with coffee producers and distributors globally to ensure a consistent supply of high-quality coffee beans for decaffeination. Additionally, the company might have partnerships with various coffee brands to provide private-label decaffeination services, further diversifying its revenue streams. The focus on quality and sustainability helps Swiss Water attract and retain a loyal customer base, contributing significantly to its earnings.

Swiss Water Decaffeinated Coffee Inc Financial Statement Overview

Summary

Swiss Water Decaffeinated Coffee Inc shows strong revenue growth and improving profitability. However, high leverage and negative operating cash flow pose significant risks. The company needs to focus on margin improvement and cash flow management to sustain financial health.

Income Statement

Swiss Water Decaffeinated Coffee Inc shows a positive revenue growth rate of 12.37% in the TTM, indicating strong sales momentum. However, the gross profit margin has slightly decreased to 14.32% from 15.13% in the previous year, suggesting increased cost pressures. The net profit margin improved to 1.36% from 0.73%, reflecting better control over expenses. Overall, the company demonstrates solid revenue growth with improving profitability, though margins remain a concern.

Balance Sheet

The company has a high debt-to-equity ratio of 2.25, indicating significant leverage, which poses a risk in terms of financial stability. Return on equity improved to 4.86% in the TTM, showing better utilization of equity. The equity ratio stands at 26.96%, suggesting a moderate level of equity financing. While the company is leveraging its equity effectively, the high debt levels could be a potential risk if not managed properly.

Cash Flow

The operating cash flow is negative at -19.74 million, indicating cash flow challenges. However, the free cash flow growth rate improved by 20.86%, suggesting some recovery. The free cash flow to net income ratio is 1.06, indicating that free cash flow covers net income, but the negative operating cash flow coverage ratio highlights potential liquidity issues. Overall, cash flow management remains a concern despite some positive trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.99M	173.13M	166.28M	176.94M	125.08M	97.57M
Gross Profit	25.95M	26.19M	18.80M	26.09M	17.61M	15.65M
EBITDA	16.70M	17.83M	16.59M	15.82M	11.68M	11.85M
Net Income	1.36M	1.27M	-528.00K	2.39M	496.00K	2.95M
Balance Sheet
Total Assets	212.79M	216.92M	200.34M	219.04M	168.25M	139.23M
Cash, Cash Equivalents and Short-Term Investments	4.79M	8.51M	11.09M	3.76M	4.25M	2.75M
Total Debt	123.85M	117.60M	116.58M	117.11M	88.57M	66.40M
Total Liabilities	155.41M	162.05M	144.48M	164.13M	112.65M	86.24M
Stockholders Equity	57.38M	54.87M	55.86M	54.91M	55.59M	52.99M
Cash Flow
Free Cash Flow	-20.96M	1.18M	10.63M	-27.01M	-20.09M	-8.16M
Operating Cash Flow	-19.73M	2.14M	30.55M	-1.04M	-6.38M	4.37M
Investing Cash Flow	-1.22M	-963.00K	-19.55M	-24.61M	-13.72M	-12.54M
Financing Cash Flow	7.37M	-3.75M	-3.67M	25.16M	21.59M	4.17M

Swiss Water Decaffeinated Coffee Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4.25 is below the 20-day moving average (MA) of 4.28, above the 50-day MA of 4.13, and above the 200-day MA of 3.63, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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
JWEL	76 Outperform	C$1.55B	26.84	12.75%	2.31%	11.87%	56.93%
MFI	72 Outperform	C$4.48B	25.02	11.29%	2.55%	5.44%	1391.43%
Sector *	63 Neutral	$20.44B	14.73	-2.84%	3.14%	2.04%	-6.12%
HLF	61 Neutral	C$469.20M	7.28	12.01%	4.98%	1.05%	13.40%
SWP	59 Neutral	C$40.56M	29.68	2.42%	―	41.69%	134.37%
DTEAF	―	$20.03M	―	-4.42%	―	―	―
HBFGF	―	$112.12M	―	-97.83%	―	―	―

Swiss Water Decaffeinated Coffee Inc Corporate Events

Swiss Water Decaffeinated Coffee Inc. Reports Strong Revenue Growth Amid Market Challenges

Swiss Water Decaffeinated Coffee Inc. reported a 56% increase in revenue for Q2 2025 compared to the previous year, despite a net loss of $0.4 million. The company faced challenges such as increased production costs and currency depreciation but managed to strengthen its financial position by renewing and expanding its operating credit facility. The volatility in coffee futures prices and potential tariffs on imports could impact future demand and operations, but the company remains optimistic about reversing these effects.

Swiss Water to Discuss Q2 2025 Financial Results in Upcoming Conference Call

Swiss Water Decaffeinated Coffee Inc. announced that it will hold a conference call to discuss its financial results for the second quarter of 2025 on August 7, 2025. The results will be released on August 6, 2025, after the market closes, and the call will provide insights into the company’s financial performance and strategic positioning.

Swiss Water Decaffeinated Coffee Inc. Acquires Warrants to Enhance Shareholder Value

Swiss Water Decaffeinated Coffee Inc. has announced an agreement to purchase outstanding share purchase warrants from Mill Road Capital, which entitle Mill Road to acquire up to 2,250,000 common shares of the company. The purchase aims to eliminate the influence of these warrants on the company’s share price, providing clarity on share ownership and benefiting shareholders. This strategic move is expected to positively impact the company’s stock trading dynamics and is seen as a constructive outcome for stakeholders.

Swiss Water Expands Credit Facilities to $80 Million

Swiss Water Decaffeinated Coffee Inc. has announced the renewal and expansion of its credit facilities, resulting in an $80 million revolving credit facility. This includes a $35 million increase in borrowing capacity, with $10 million from CIBC and $25 million from new partner Rabobank. The facility, maturing in 2027 with an extension option to 2028, aims to support working capital amid rising sales volumes and coffee prices. This development underscores the company’s ability to navigate a volatile coffee market and reflects confidence in its growth potential.

Swiss Water Decaffeinated Coffee Inc. Announces AGM Voting Results

Swiss Water Decaffeinated Coffee Inc. announced the results of its Annual General Meeting of Shareholders, where all director nominees were successfully elected, and MNP LLP was appointed as auditors with overwhelming support. These developments reinforce the company’s stable governance structure and its commitment to maintaining transparency and trust with stakeholders, which is crucial for its continued leadership in the specialty coffee industry.