Education
About Us
Working with TipRanks
Follow Us
Swiss Water Decaffeinated Coffee Inc (TSE:SWP)
TSX:SWP
Top Page
Swiss Water Decaffeinated Coffee Inc
(TSX:SWP)
Select Model
Select Model
Rating:60Neutral
Price Target:
C$4.50
▼(-5.06% Downside)
Swiss Water Decaffeinated Coffee Inc's overall score reflects strong revenue growth and positive technical indicators. However, financial performance is hindered by high leverage and negative cash flow, while valuation concerns and mixed earnings call sentiment further moderate the score. Strategic initiatives and market positioning offer potential upside if challenges are effectively managed.
Swiss Water Decaffeinated Coffee Inc (SWP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$45.24M
Dividend YieldN/A
Average Volume (3M)12.10K
Price to Earnings (P/E)33.1
Beta (1Y)0.58
Revenue Growth41.69%
EPS Growth134.37%
CountryCA
Employees85
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)N/A
Shares Outstanding9,544,552
10 Day Avg. Volume2,345
30 Day Avg. Volume12,097
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
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 ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Swiss Water Decaffeinated Coffee Inc Business Overview & Revenue Model
Company DescriptionSwiss 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 MoneySwiss 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
While Swiss Water Decaffeinated Coffee Inc. experienced strong revenue growth and maintained stable demand for its products, they faced challenges including a decline in gross profit, a net loss, and issues with the NY'C' futures market affecting EBITDA. Strategic initiatives such as credit facility expansion and inventory management provided some positive momentum. Overall, the sentiment of the earnings call is mixed with significant positives and negatives.Q2-2025 Updates
Positive Updates
Revenue Growth
Q2 revenue increased by 56% to $67.7 million compared to $43.4 million in Q2 2024, driven by NY'C' effects, customer mix, and improved logistics revenue.
Stable Performance and Demand
Continued demand for chemical-free decaffeinated coffee with strategic inventory positioning enabling quick response to customer needs.
Credit Facility Expansion
Successfully renewed and expanded credit facility, repurchased and canceled Mill Road Capital warrants, strengthening the balance sheet.
Increased Shipped Volumes
Total shipped volumes increased by 2% in the first half, driven by robust sales with established customers.
Growth in Roaster Segment
Shipments to roasters increased by 5% in Q2, reflecting strong demand in this segment.
Negative Updates
Decrease in Gross Profit and Margin
Q2 gross profit was $5.2 million, down 22% year-over-year, with gross margin percentage decreasing to 8% from 18% in the prior year.
Net Loss Recorded
Q2 net loss was $374,000 compared to net income of $947,000 in Q2 2024, influenced by a $1.1 million loss on risk management activities.
Adjusted EBITDA Decline
Q2 adjusted EBITDA was $1.8 million, down 59% year-over-year, driven by loss on risk management activities.
Challenges with NY'C' Futures Market
Inverted NY'C' futures market created short-term EBITDA impact with pricing actions expected to recover costs.
Decrease in Importer Shipments
Shipments to importers were down 6% in the quarter, reflecting cautious purchasing behavior.
Company Guidance
During the conference call, Swiss Water Decaffeinated Coffee Inc. highlighted several key metrics and strategies to navigate the current market environment. The company reported a 2% increase in total shipped volumes in the first half of 2025, driven by strong sales with established customers, despite a 6% decline in shipments to importers during the quarter. Revenue in Q2 2025 surged 56% to $67.7 million compared to the same period last year, primarily due to the effects of the NY'C' futures market, inversion, and tariff cost recovery. However, the cost of sales increased 75% year-over-year to $62.4 million, influenced by elevated coffee prices and other factors. The company also noted a 22% year-over-year decline in gross profit to $5.2 million, with the gross margin percentage dropping to 8% from 18%. Adjusted EBITDA fell by 59% to $1.8 million, attributed to losses on risk management activities expected to recover through pricing actions. Additionally, Swiss Water reported a net loss of $374,000 for Q2 2025, compared to a net income of $947,000 in Q2 2024. The company emphasized the importance of strategic inventory positioning and highlighted its successful renewal and expansion of its credit facility, contributing to improved financial flexibility.Swiss Water Decaffeinated Coffee Inc Financial Statement Overview
Summary
Swiss Water Decaffeinated Coffee Inc shows strong revenue growth and improving profitability. However, high leverage and negative operating cash flow pose significant risks. The company needs to focus on margin improvement and cash flow management to sustain 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.68
Positive
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.55
Neutral
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.45
Neutral
| 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 | 15.82M | 11.68M | 11.85M |
| 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 | 117.11M | 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
Positive
4.74
Price Trends
4.47
Positive
4.25
Positive
3.77
Positive
Market Momentum
0.08
Positive
59.68
Neutral
46.03
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 4.74 is above the 20-day moving average (MA) of 4.64, above the 50-day MA of 4.47, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 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$1.45B | 24.92 | 12.75% | 2.48% | 11.87% | 56.93% | |
68 Neutral | C$490.34M | 7.63 | 12.01% | 4.76% | 1.05% | 13.40% | |
67 Neutral | C$3.28B | 18.22 | 11.29% | 2.82% | 5.44% | 1391.43% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | C$45.24M | 33.10 | 2.42% | ― | 41.69% | 134.37% | |
54 Neutral | $223.97M | -98.30 | -97.83% | ― | 144.66% | -11.39% |
* Consumer Defensive Sector Average
TSE:SWP
Swiss Water Decaffeinated Coffee Inc
4.74
0.87
22.48%
TSE:DTEA
DAVIDsTEA
0.84
0.46
121.05%
TSE:HLF
High Liner Foods
16.68
3.81
29.60%
TSE:MFI
Maple Leaf Foods
24.92
5.54
28.59%
TSE:JWEL
Jamieson Wellness Inc
34.62
1.96
6.00%
TSE:HBFG
Happy Belly Food Group
1.74
1.14
190.00%
Swiss Water Decaffeinated Coffee Inc Corporate Events
Swiss Water’s Earnings Call: Revenue Soars Amid Challenges
Aug 13, 2025
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.
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Swiss Water Decaffeinated Coffee Inc. Reports Strong Revenue Growth Amid Market Challenges
Positive
Aug 7, 2025
Swiss Water Decaffeinated Coffee Inc. reported a 56% increase in revenue for Q2 2025 compared to the previous year, despite a net loss of $0.4 million. The company faced challenges such as increased production costs and currency depreciation but managed to strengthen its financial position by renewing and expanding its operating credit facility. The volatility in coffee futures prices and potential tariffs on imports could impact future demand and operations, but the company remains optimistic about reversing these effects.
Financial Disclosures
Swiss Water to Discuss Q2 2025 Financial Results in Upcoming Conference Call
Neutral
Jul 30, 2025
Swiss Water Decaffeinated Coffee Inc. announced that it will hold a conference call to discuss its financial results for the second quarter of 2025 on August 7, 2025. The results will be released on August 6, 2025, after the market closes, and the call will provide insights into the company’s financial performance and strategic positioning.
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.