Swiss Water Decaffeinated Coffee Inc (SWP) AI Stock Analysis

• Market Cap: C$40.37M
• Dividend Yield: N/A
• Average Volume (3M): 21.25K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.38
• Revenue Growth: 26.10%
• EPS Growth: N/A
• Country: CA
• Employees: 85
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Packaged Foods
• EPS (TTM): -0.06
• Shares Outstanding: 9,544,552
• 10 Day Avg. Volume: 10,749
• 30 Day Avg. Volume: 21,245
• PEG Ratio: 0.13
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.31
• 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$3.50
• Price Target Upside: -18.98% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: C$5.00 ▲(15.74%Upside)

Swiss Water Decaffeinated Coffee Inc scores well due to strong operational performance and strategic corporate actions. However, high leverage and cash flow challenges are significant risks. Technical indicators show bullish momentum, but caution is advised due to overbought conditions. Valuation is reasonable but lacks income appeal.

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 coffee roasters, as well as sells coffees through regional distributors. The company decaffeinates coffees without the use of chemicals. It also provides a range of green coffee logistics services, including devanning coffee received from origin; inspecting, weighing, and sampling coffees; and storing, handling, and preparing green coffee for outbound shipments. In addition, the company handles and stores coffees for various other coffee importers and brokers. The company was formerly known as Ten Peaks Coffee Company Inc. and changed its name to Swiss Water Decaffeinated Coffee Inc. in September 2018. Swiss Water Decaffeinated Coffee Inc. is headquartered in Delta, Canada.

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 profit margins, but faces challenges with high leverage and negative cash flows. The focus should be on stabilizing cash flows and reducing debt to enhance financial stability.

Income Statement

Swiss Water Decaffeinated Coffee Inc has shown strong revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue increase from $173.13 million to $196.67 million. The gross profit margin is stable at 14.32%, and the net profit margin improved significantly in the TTM to 1.36% from the previous year's 0.73%. Additionally, the EBIT and EBITDA margins stand at 6.91% and 9.76% respectively, indicating efficient operational performance. However, the net income has shown some volatility in the past, and maintaining consistent profitability remains a challenge.

Balance Sheet

The balance sheet of Swiss Water Decaffeinated Coffee Inc shows a high debt-to-equity ratio of 2.25, indicating significant leverage, which might pose risks in adverse conditions. The equity ratio is at 25.07%, suggesting a moderate level of financial stability. The return on equity (ROE) for the TTM is 4.82%, showing improved efficiency in generating profits from shareholders' equity compared to previous periods. While the company is managing its liabilities, the high debt level remains a concern.

Cash Flow

The cash flow statement reflects challenges with negative free cash flow of -$17.34 million in the TTM, primarily due to negative operating cash flow. The operating cash flow to net income ratio is -6.07, indicating operational inefficiencies in converting net income into cash. Nevertheless, the free cash flow to net income ratio is -6.46, highlighting the need for improved cash generation. The company must focus on enhancing operational cash flows to strengthen its financial footing.

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: 4.32
• 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 4.32 is above the 20-day moving average (MA) of 3.98, above the 50-day MA of 3.53, and above the 200-day MA of 3.57, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 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
SWP	71 Outperform	C$40.37M	15.31	4.88%	―	26.10%	―
Sector *	65 Neutral	$27.03B	15.38	-4.26%	3.26%	1.00%	3.39%
DTEAF	―	$21.68M	―	-4.42%	―	―	―
JWEL	76 Outperform	C$1.45B	27.06	11.64%	2.46%	12.62%	47.37%
MFI	72 Outperform	C$3.77B	39.73	6.05%	3.04%	3.16%	―
HLF	64 Neutral	C$530.10M	6.93	14.49%	0.27%	-4.45%	90.27%
HBFGF	―	$101.19M	―	-183.38%	―	―	―

Swiss Water Decaffeinated Coffee Inc Corporate Events

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.

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.