Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$45.24M
• Dividend Yield: N/A
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.58
• 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: 63 Neutral
• Price Target: C$5.00 ▲(11.61% Upside)

Swiss Water Decaffeinated Coffee Inc's overall stock score reflects strong revenue growth and improving profitability, supported by a positive earnings call. However, high leverage, negative operating cash flow, and a high P/E ratio pose significant risks. The technical indicators suggest a stable outlook, but valuation concerns may limit upside potential.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Swiss Water's products, suggesting a robust market position and potential for sustained sales momentum.

Improved Profitability

Improved profitability through effective pricing and cost management enhances Swiss Water's financial health and supports long-term operational stability.

Debt Reduction

Reducing debt strengthens the balance sheet, improves financial flexibility, and reduces risk, supporting Swiss Water's long-term financial sustainability.

Negative Factors

High Leverage

High leverage can strain financial resources and limit strategic options, posing a risk to Swiss Water's long-term financial stability if not managed properly.

Negative Operating Cash Flow

Negative operating cash flow indicates liquidity challenges, which could impact Swiss Water's ability to invest in growth and manage debt effectively.

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially hindering Swiss Water's ability to sustain its financial performance over time.

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	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	20.42M	12.89M	9.81M
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	115.68M	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: Negative
• Last Price: 4.48
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.48 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 4.53, and above the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.45B	24.92	13.44%	2.56%	11.25%	58.21%
MFI	67 Neutral	C$3.28B	18.22	11.72%	3.12%	-0.03%	497.79%
SWP	63 Neutral	C$45.24M	33.10	4.23%	―	46.54%	968.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	58 Neutral	C$490.34M	7.63	8.60%	6.11%	6.15%	-36.76%
HBFG	54 Neutral	$223.97M	-98.30	-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.

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.

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.

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.

Swiss Water’s Earnings Call: Revenue Soars Amid Challenges

Swiss Water Decaffeinated Coffee Inc. recently held its earnings call, revealing a mixed financial landscape. While the company celebrated significant revenue growth and strategic financial management, it also faced substantial challenges, including a net loss and declines in gross profit and adjusted EBITDA. The company’s strategic initiatives, such as inventory management and credit facility expansion, were positively highlighted, suggesting a cautiously optimistic outlook despite current financial struggles.