Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$31.02M
• Dividend Yield: N/A
• Average Volume (3M): 6.65K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.23
• Revenue Growth: 26.10%
• EPS Growth: N/A
• Country: CA
• Employees: 85
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): -0.06
• Shares Outstanding: 9,544,552
• 10 Day Avg. Volume: 5,763
• 30 Day Avg. Volume: 6,653
• PEG Ratio: 0.02
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.78
• 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

• Rating: 69 Neutral
• Price Target: C$3.50 ▲(7.69%Upside)

Swiss Water Decaffeinated Coffee Inc shows strong operational performance and is strategically positioned for growth, supported by recent financial and governance actions. However, the high financial leverage and cash flow inconsistencies, combined with neutral technical indicators, warrant a cautious outlook.

Swiss Water Decaffeinated Coffee Inc Business Overview & Revenue Model

Company Description

Swiss Water Decaffeinated Coffee Inc. (SWP) is a premium coffee company specializing in the decaffeination of coffee beans. The company operates in the beverage sector and is renowned for its proprietary Swiss Water Process, an innovative chemical-free method that removes caffeine from coffee beans while preserving their original flavor profiles. With a strong commitment to sustainability and quality, SWP serves both commercial and retail customers by providing decaffeinated green coffee beans worldwide.

How the Company Makes Money

Swiss Water Decaffeinated Coffee Inc. generates revenue primarily through the sale of decaffeinated coffee beans. The company employs its unique Swiss Water Process to decaffeinate coffee beans, which it then sells to coffee roasters, specialty coffee retailers, and various distributors globally. SWP's business model focuses on B2B transactions, where it charges clients for the decaffeination service as well as for the final product. Additionally, key partnerships with coffee producers and distributors enhance its market reach and contribute to its earnings by facilitating access to a broader customer base and ensuring a steady supply of coffee beans.

Swiss Water Decaffeinated Coffee Inc Financial Statement Overview

Summary

Swiss Water Decaffeinated Coffee Inc exhibits a solid revenue growth trend with improving profitability metrics, yet faces challenges with high leverage and inconsistent cash flows. While operational improvements are evident, addressing financial leverage and enhancing cash flow consistency will be crucial for sustainable growth and financial stability.

Income Statement

The company's income statement shows a positive growth trajectory. The TTM (Trailing-Twelve-Months) revenue increased by 4.12% compared to the previous year, indicating steady growth. Gross profit margin improved to 14.89% TTM, up from 11.30% the previous year. The net profit margin turned positive at 0.73% TTM, recovering from a negative margin last year. EBIT and EBITDA margins also improved, reflecting better operational efficiency. However, the relatively low net profit margin suggests room for further profitability enhancements.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio stands at 2.14, indicating a high level of leverage, which could pose financial risks. The equity ratio is 25.29%, signifying a moderate level of equity financing. Return on equity improved to 2.31% TTM from a negative value last year, demonstrating better utilization of equity. While there are improvements, the high leverage remains a concern that needs addressing.

Cash Flow

Cash flow analysis highlights challenges with consistency. Operating cash flow decreased significantly in the TTM period compared to last year, possibly impacting liquidity. Free cash flow showed positive growth, but the operating cash flow to net income ratio of 1.69 indicates reliance on non-operating sources for cash. The free cash flow to net income ratio of 0.93 suggests that free cash flow generation is not fully supporting net income.

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

Swiss Water Decaffeinated Coffee Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 3.25 is above the 20-day moving average (MA) of 3.25, above the 50-day MA of 3.20, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 56.65 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
HLF	78 Outperform	C$523.08M	6.83	14.49%	3.78%	-4.45%	90.27%
JWEL	76 Outperform	C$1.49B	27.77	11.64%	3.23%	12.62%	47.37%
MFI	72 Outperform	C$3.50B	36.97	6.05%	3.40%	3.16%	―
SWP	69 Neutral	C$31.02M	11.52	4.88%	―	26.10%	―
Sector *	53 Neutral	C$4.43B	3.69	-22.83%	4.45%	8.13%	2.00%
HBFG	52 Neutral	$145.00M	―	-183.38%	―	100.08%	-22.44%

Swiss Water Decaffeinated Coffee Inc Corporate Events

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.

Swiss Water Decaffeinated Coffee Inc. Reports Robust Q1 2025 Financial Results

Swiss Water Decaffeinated Coffee Inc. reported strong financial results for the first quarter of 2025, with a 61% increase in revenue to $62.3 million and a 42% rise in gross profit to $7.3 million compared to the same period in 2024. Despite volatility in the coffee market and challenges such as potential tariffs, the company maintained operational momentum by increasing inventory levels and securing new customer accounts, positioning itself well in a complex pricing environment.

Swiss Water to Discuss Q1 2025 Financial Results in Upcoming Conference Call

Swiss Water Decaffeinated Coffee Inc. has announced a conference call to discuss its financial results for the first quarter of 2025. The call is scheduled for May 8, 2025, following the release of the financial results on May 7, 2025. This announcement is crucial for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning in the specialty coffee industry.