Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$42.95M
• Dividend Yield: N/A
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.87
• Revenue Growth: 46.54%
• EPS Growth: 968.67%
• Country: CA
• Employees: 85
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 9,544,552
• 10 Day Avg. Volume: 2,345
• 30 Day Avg. Volume: 12,097
• PEG Ratio: -0.09
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 31.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$4.50 ▼(-0.66% Downside)

Swiss Water Decaffeinated Coffee Inc shows potential with strong revenue growth and improved profitability, as highlighted in the earnings call. However, financial performance is hindered by high leverage and cash flow challenges. Technical indicators suggest a neutral trend, and valuation is moderate. The company needs to address operational challenges to enhance its financial health.

Positive Factors

Revenue Growth

A significant increase in revenue indicates strong demand and effective pricing strategies, supporting long-term growth prospects.

Improved Profitability

Improved profitability through effective cost management enhances financial stability and supports future investment in growth.

Debt Reduction

Reducing debt strengthens the balance sheet, improving financial flexibility and lowering risk, which is crucial for long-term sustainability.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit the company's ability to invest in growth opportunities.

Cash Flow Challenges

Weak cash flow performance can strain operations and limit the company's ability to fund new initiatives or manage debt effectively.

Declining Margins

Shrinking margins indicate challenges in maintaining cost efficiency, which can impact profitability and competitive positioning.

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 decaffeinated coffee using its proprietary Swiss Water Process, which is an environmentally friendly method that eliminates caffeine while preserving the coffee's original flavor profile. Founded in 1988, the company operates in the specialty coffee sector and caters to a growing market of health-conscious consumers seeking high-quality decaffeinated options. SWP sources its green coffee beans globally and offers its decaffeination services to coffee roasters and retailers, ensuring a sustainable and premium product.

How the Company Makes Money

Swiss Water Decaffeinated Coffee Inc. primarily generates revenue through the sale of its decaffeinated coffee products and the provision of decaffeination services to other coffee brands. The company charges fees for its proprietary Swiss Water Process, allowing partners to have their coffee beans decaffeinated while maintaining flavor integrity. Key revenue streams include direct sales to coffee roasters, retail partnerships, and the sale of branded decaffeinated coffee products. Additionally, SWP benefits from long-term partnerships with major coffee brands and retailers, which provide a steady demand for its services and products. The growing consumer preference for decaffeinated options also contributes to increased sales and revenue growth.

Swiss Water Decaffeinated Coffee Inc Financial Statement Overview

Summary

Swiss Water Decaffeinated Coffee Inc exhibits strong revenue growth and improving profitability, but faces challenges with high leverage and negative operating cash flow. While the company is effectively utilizing its equity, the high debt levels and cash flow issues could pose risks. Continued focus on margin improvement and cash flow management will be crucial for sustaining 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	241.96M	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	17.51M	17.83M	16.59M	20.42M	12.89M	9.81M
Net Income	2.37M	1.27M	-528.00K	2.39M	496.00K	2.95M
Balance Sheet
Total Assets	214.60M	216.92M	200.34M	219.04M	168.25M	139.23M
Cash, Cash Equivalents and Short-Term Investments	3.94M	8.51M	11.09M	3.76M	4.25M	2.75M
Total Debt	111.61M	117.60M	116.58M	115.68M	88.57M	66.40M
Total Liabilities	157.52M	162.05M	144.48M	164.13M	112.65M	86.24M
Stockholders Equity	57.08M	54.87M	55.86M	54.91M	55.59M	52.99M
Cash Flow
Free Cash Flow	-2.96M	1.18M	10.63M	-27.01M	-20.09M	-8.16M
Operating Cash Flow	-1.64M	2.14M	30.55M	-1.04M	-6.38M	4.37M
Investing Cash Flow	-1.32M	-963.00K	-19.55M	-24.61M	-13.72M	-12.54M
Financing Cash Flow	-8.08M	-3.75M	-3.67M	25.16M	21.59M	4.17M

Swiss Water Decaffeinated Coffee Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.53
• 50DMA: Negative
• 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 4.53 is above the 20-day moving average (MA) of 4.46, below the 50-day MA of 4.54, and above the 200-day MA of 3.94, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 66.77 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	68 Neutral	C$1.37B	21.87	13.44%	2.67%	11.25%	58.21%
MFI	64 Neutral	C$3.09B	15.05	11.72%	4.96%	-0.03%	497.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SWP	60 Neutral	C$42.95M	18.19	4.23%	―	46.54%	968.67%
HLF	58 Neutral	C$409.88M	8.82	8.60%	4.82%	6.15%	-36.76%
HBFG	45 Neutral	C$298.14M	-125.14	-95.27%	―	212.16%	-46.40%

Swiss Water Decaffeinated Coffee Inc Corporate Events

Swiss Water Decaffeinated Coffee Inc. Reports Strong Q3 2025 Results Amid Market Volatility

Swiss Water Decaffeinated Coffee Inc. reported a strong financial performance in the third quarter of 2025, with a 50% increase in revenue and a notable rise in net income compared to the previous year. Despite market volatility and increased tariffs on Brazilian coffee, the company has managed to maintain growth through strategic coffee purchases and favorable foreign exchange movements. The company’s operational discipline and risk management have allowed it to strengthen its balance sheet and continue serving its customers effectively, even as the coffee market faces ongoing challenges.

Swiss Water to Discuss Q3 2025 Financial Results

Swiss Water Decaffeinated Coffee Inc. announced a conference call to discuss its financial results for the third quarter of 2025, scheduled for November 7, 2025. The financial results will be released a day prior, on November 6, 2025, after market close, providing stakeholders with insights into the company’s performance and potentially impacting its market positioning.