Swiss Water Decaffeinated Coffee Inc (TSE:SWP)
TSX:SWP
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Swiss Water Decaffeinated Coffee Inc
(TSX:SWP)
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Rating:67Neutral
Price Target:
C$6.00
▲(36.05% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals (stronger TTM cash generation and a return to profitability) but held back by thin margins and elevated leverage. Technicals add support with a clear uptrend and positive momentum, while valuation is favorable given the low P/E.
Positive Factors
Proprietary solvent-free process
The Swiss Water Process is a differentiated, chemical-free decaffeination method that supports clean-label positioning and brand trust among roasters and consumers. As a defensible technology and niche capability, it underpins long-term customer preference and pricing leverage for contract services.
Negative Factors
Thin net margins
A roughly 1% net margin leaves little buffer against input-cost shocks (green coffee, energy) or pricing pressure from customers. Persistent thin margins constrain retained earnings, limit room for margin expansion, and make profitability highly sensitive to volume and cost volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary solvent-free process
The Swiss Water Process is a differentiated, chemical-free decaffeination method that supports clean-label positioning and brand trust among roasters and consumers. As a defensible technology and niche capability, it underpins long-term customer preference and pricing leverage for contract services.
Read all positive factors
Swiss Water Decaffeinated Coffee Inc (SWP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$55.17M
Dividend YieldN/A
Average Volume (3M)12.10K
Price to Earnings (P/E)8.0
Beta (1Y)0.59
Revenue Growth29.10%
EPS Growth-9.96%
CountryCA
Employees85
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.25
Shares Outstanding9,544,552
10 Day Avg. Volume2,345
30 Day Avg. Volume12,097
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)0.72
Price to Sales (P/S)0.16
P/FCF Ratio7.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.2
Revenue Forecast (FY)C$261.31M
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 c...
How the Company Makes Money
SWP makes money primarily by providing contract decaffeination services to coffee companies. Customers supply (or arrange supply of) green coffee, and SWP decaffeinates the coffee using its Swiss Water Process, earning revenue from processing fees...
Swiss Water Decaffeinated Coffee Inc Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. The company showcased strong performance with significant revenue growth and improved profitability, alongside successful debt reduction. However, ongoing challenges such as market volatility, the impact of Brazilian tariffs, and increased operating expenses posed significant hurdles.Positive Updates
Volume Growth and Strong Demand
Swiss Water Decaffeinated Coffee Inc. reported a 7% volume growth compared to Q3 last year, driven by strong demand for their chemical-free decaffeinated coffee and disciplined operations.
Negative Updates
Operational Challenges Due to Market Volatility
The NY'C' futures market remained inverted, causing ongoing short-term EBITDA impacts as hedge positions were rolled forward, leading to timing differences in financial results.
Read all updates
Q3-2025 Updates
Positive
Negative
Volume Growth and Strong Demand
Swiss Water Decaffeinated Coffee Inc. reported a 7% volume growth compared to Q3 last year, driven by strong demand for their chemical-free decaffeinated coffee and disciplined operations.
Read all positive updates
Company Guidance
In the third quarter of 2025, Swiss Water Decaffeinated Coffee Inc. reported a 7% increase in volume growth compared to the same period last year, driven by strong demand for their chemical-free decaffeinated coffee and strategic inventory management. The company achieved a 50% rise in revenue to $62.7 million, largely due to higher volumes and elevated coffee prices. Total shipped volumes increased by 7% year-over-year, while specialty volumes surged by 24%. The NY'C' futures market volatility and inversion impacted short-term EBITDA, although adjusted EBITDA rose by 52% to $3.3 million. The company continued to focus on debt reduction, cash generation, and maintaining a robust balance sheet, ending the quarter with $3.9 million in cash and net working capital of $38.8 million. Despite market challenges, Swiss Water maintained strong operational performance and financial flexibility, positioning themselves for continued steady results in the future.Swiss Water Decaffeinated Coffee Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 253.90M | 258.72M | 173.13M | 166.28M | 176.94M | 125.08M |
| Gross Profit | 27.46M | 26.59M | 26.19M | 18.80M | 26.09M | 17.61M |
| EBITDA | 20.82M | 19.02M | 17.83M | 16.59M | 20.42M | 12.89M |
| Net Income | 2.43M | 1.56M | 1.27M | -528.00K | 2.39M | 496.00K |
Balance Sheet | ||||||
| Total Assets | 207.63M | 208.86M | 216.92M | 200.34M | 219.04M | 168.25M |
| Cash, Cash Equivalents and Short-Term Investments | 4.78M | 6.61M | 8.51M | 11.09M | 3.76M | 4.25M |
| Total Debt | 106.97M | 110.94M | 117.60M | 116.58M | 115.68M | 88.57M |
| Total Liabilities | 147.98M | 150.13M | 162.05M | 144.48M | 164.13M | 112.65M |
| Stockholders Equity | 59.65M | 58.73M | 54.87M | 55.86M | 54.91M | 55.59M |
Cash Flow | ||||||
| Free Cash Flow | 22.90M | 6.00M | 1.18M | 10.63M | -27.01M | -20.09M |
| Operating Cash Flow | 24.23M | 7.32M | 2.14M | 30.55M | -1.04M | -6.38M |
| Investing Cash Flow | -1.32M | -1.32M | -963.00K | -19.55M | -24.61M | -13.72M |
| Financing Cash Flow | -23.11M | -7.91M | -3.75M | -3.67M | 25.16M | 21.59M |
Swiss Water Decaffeinated Coffee Inc Technical Analysis
Positive
4.41
Price Trends
4.97
Positive
4.72
Positive
4.59
Positive
Market Momentum
0.22
Negative
67.75
Neutral
63.71
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 5.30, below the 50-day MA of 4.97, and below the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.71 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$16.86B | 19.22 | 9.50% | 1.89% | 0.74% | ― | |
67 Neutral | C$55.17M | 8.03 | 4.17% | ― | 29.10% | -9.96% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | C$57.14M | 33.38 | 47.73% | ― | 75.19% | 44.09% | |
48 Neutral | C$25.38M | -1.45 | -1208.82% | ― | 337.52% | -8.78% | |
43 Neutral | C$4.71B | 364.63 | 2.21% | 3.34% | 17.36% | -65.87% |
* Consumer Defensive Sector Average
TSE:SWP
Swiss Water Decaffeinated Coffee Inc
5.80
2.53
77.37%
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Swiss Water Decaffeinated Coffee Inc Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Swiss Water Strikes Governance Deal With Largest Shareholder Ahead of 2026 AGM
Positive
Apr 1, 2026
Swiss Water Decaffeinated Coffee Inc., a specialty coffee company and premium green coffee decaffeinator, operates a proprietary solvent‑free decaffeination process and runs a green coffee handling and storage subsidiary in Delta, British Co...
Business Operations and StrategyShareholder Meetings
Swiss Water Adopts Shareholder Rights Plan Ahead of 2026 AGM
Positive
Mar 17, 2026
Swiss Water Decaffeinated Coffee Inc. has adopted a shareholder rights plan, aligning with similar modern plans used by other Canadian public companies, and appointed Computershare Investor Services as rights agent. The plan is intended to give th...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Swiss Water Grows Revenue in Volatile Coffee Market but Feels Margin Pressure
Neutral
Mar 12, 2026
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 coffe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.