Westrock Coffee (WEST) AI Stock Analysis

• Market Cap: $419.49M
• Dividend Yield: N/A
• Average Volume (3M): 339.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 28.89%
• EPS Growth: -13.96%
• Country: US
• Employees: 1,408
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.15
• Shares Outstanding: 96,879,110
• 10 Day Avg. Volume: 521,558
• 30 Day Avg. Volume: 339,760
• PEG Ratio: -0.77
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -3.60
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 10.05
• 1Y Price Target: $6.67
• Price Target Upside: 50.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $1.34B

• Rating: 48 Neutral
• Price Target: $4.50 ▲(1.58% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by weak financial quality (negative equity, ongoing losses, and persistently negative free cash flow) and a bearish technical setup (below key moving averages with negative MACD). These are partially offset by a more constructive earnings outlook highlighted by strong sales/EBITDA momentum, reiterated guidance, and added liquidity support.

Positive Factors

Vertical integration and supply-chain control

Westrock's integrated model—from green coffee sourcing to extracts and finished goods—lets it capture margin across the value chain, offer supply reliability and traceability to customers, and support durable contract-based revenue streams, reducing reliance on third-party suppliers over time.

Strong recent revenue momentum and segment expansion

Substantial top-line growth and segment expansion (Beverage Solutions and SS&T) reflect scalable customer wins and expanding share in RTD and ingredient markets; sustained revenue momentum supports operational leverage potential if margins stabilize.

Capacity investments, capital infusion and improving guidance

The $30M raise and debt covenant realignment relieve near-term liquidity strain, while Conway facility scale-up and a raised 2026 Adjusted EBITDA target signal management confidence that recent capacity investments will convert into higher throughput and better long-term margins.

Negative Factors

Negative shareholders' equity / elevated balance-sheet risk

A negative equity position materially weakens the capital cushion, amplifies leverage effects and limits access to credit or favorable financing. This structural weakness constrains strategic optionality and raises the stakes on operational turnaround executing as planned.

Persistently negative operating and free cash flow

Sustained negative OCF and deeply negative FCF mean the business depends on external financing for working capital and capex. Over months, this elevates refinancing and liquidity risk and pressures investment flexibility if capital markets tighten or funding costs rise.

Profitability and margin compression

Volatile and compressed gross margins alongside ongoing net losses indicate margins are not yet sustainable. Structural cost pressures (coffee prices, tariffs) and scale-up costs have prevented durable operating profitability, increasing risk until margins recover consistently.

Westrock Coffee Business Overview & Revenue Model

Company Description

Westrock Coffee Company, LLC roasts, produces, and distributes coffee. It operates through two segments, Beverage Solutions and Sustainable Sourcing and Traceability. The company engages in coffee sourcing, supply chain management, product development, and packaging to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. It also offers coffee, tea, juices, flavors, extracts, and ingredients. In addition, the company provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions. Further, it engages in delivery and settlement of forward sales contracts for green coffee. The company also exports its products. The company was founded in 2009 and is based in Little Rock, Arkansas.

How the Company Makes Money

Westrock makes money primarily by selling coffee, tea, and beverage-related products and ingredients to business customers under commercial supply agreements. Key revenue streams include: (1) Beverage ingredients and extracts: production and sale of liquid coffee extracts/concentrates and other flavor or functional ingredients that customers use to manufacture RTD beverages and other packaged products; revenue is generated from ingredient volumes sold, often tied to customer production runs and multi-year contracts. (2) Roasted coffee and tea (commercial and private label): roasting, blending, packaging, and selling finished coffee/tea products to retailers and foodservice operators, including private-label programs where Westrock manufactures products that are sold under a customer’s brand; revenue is driven by contracted supply volumes and pricing that reflects green coffee/tea input costs plus processing and service margins. (3) Co-manufacturing/packaging and value-added services: providing formulation support, product development, and manufacturing/packaging services for customer-branded products; revenue is earned via per-unit manufacturing fees and/or embedded margin within finished-goods pricing. A significant factor in earnings is Westrock’s vertical integration across sourcing, processing, and manufacturing, which enables it to capture margin at multiple points in the value chain and to offer customers supply reliability, traceability, and tailored product formats (whole bean, ground, single-serve, liquid concentrates). Specific customer names, contract terms, segment revenue splits, and margin details: null.

Westrock Coffee Financial Statement Overview

Summary

Revenue growth improved in 2025, but fundamentals remain stressed: gross margin compressed sharply, the company is still loss-making, shareholders’ equity turned slightly negative, and operating/free cash flow stayed negative (deeply negative FCF).

Income Statement

Revenue rebounded strongly in 2025 (up ~10% year over year) after flat-to-down growth in 2023–2024, but profitability remains a clear weakness. Gross margin compressed to ~12.7% in 2025 from ~18.1% in 2024, and the company continues to post net losses (about -7.6% net margin in 2025). While losses have improved versus the deep 2020 downturn, the return to sustainable operating profitability has not been achieved and margins have been volatile.

Balance Sheet

Balance sheet risk increased materially in 2025 as shareholders’ equity turned slightly negative, which makes leverage look extreme and indicates a thinner capital cushion. Debt declined versus 2024 (about $202M vs. ~$505M), but the negative equity position elevates financial risk and limits flexibility. Total assets are sizable (~$1.18B), yet the combination of losses and weakened equity profile is the main concern.

Cash Flow

Cash generation is the weakest area: operating cash flow has been negative in most years and remained negative in 2025, and free cash flow is deeply negative (about -$108M in 2025) despite improving from 2024. The company is effectively funding operations and investment through external capital rather than internally generated cash, which can pressure liquidity and financing needs if conditions tighten.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.19B	850.73M	864.71M	867.87M	698.14M
Gross Profit	122.65M	153.77M	139.86M	152.76M	145.42M
EBITDA	-6.99M	-7.78M	14.92M	4.36M	33.37M
Net Income	-90.10M	-80.30M	-34.58M	-55.19M	-21.95M
Balance Sheet
Total Assets	1.24B	1.10B	971.51M	746.21M	593.02M
Cash, Cash Equivalents and Short-Term Investments	49.88M	26.15M	37.20M	16.84M	19.34M
Total Debt	201.63M	504.99M	340.15M	225.34M	337.81M
Total Liabilities	973.16M	730.45M	583.56M	459.55M	487.15M
Stockholders Equity	271.63M	371.33M	387.96M	284.20M	103.14M
Cash Flow
Free Cash Flow	-107.81M	-172.87M	-228.85M	-120.06M	-22.56M
Operating Cash Flow	-19.01M	-13.24M	-64.06M	-56.63M	2.88M
Investing Cash Flow	-82.18M	-145.92M	-168.35M	-74.17M	-22.65M
Financing Cash Flow	136.71M	156.63M	244.21M	134.68M	23.84M

Westrock Coffee Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEST, the sentiment is Negative. The current price of 4.43 is above the 20-day moving average (MA) of 4.34, below the 50-day MA of 4.57, and below the 200-day MA of 5.13, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEST.

Westrock Coffee Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAMA	71 Outperform	$615.90M	194.30	14.26%	―	29.92%	30.02%
JVA	70 Outperform	$24.66M	2.76	6.84%	―	17.92%	64.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LSF	52 Neutral	$26.65M	-15.26	-14.36%	―	17.73%	-34.71%
WEST	48 Neutral	$419.49M	-4.31	-30.31%	―	28.89%	-13.96%
BRCC	45 Neutral	$214.21M	-9.91	-41.47%	―	-3.42%	-85.49%
FARM	44 Neutral	$27.16M	-1.63	-48.26%	―	-1.58%	-78.08%

Westrock Coffee Corporate Events

Westrock Coffee directors retire as growth outlook strengthened

On March 5, 2026, directors R. Brad Martin and Josie C. Natori retired from Westrock Coffee’s board, with the company emphasizing there was no disagreement over operations, policies or practices. Management credited both leaders for guiding Westrock from its de‑SPAC listing through the build‑out and commercialization of its Conway, Arkansas extracts and ready‑to‑drink facility, which they said has positioned the company for its next phase of growth.

For 2025, Westrock Coffee reported net sales of $1.2 billion, up 39.8%, but gross profit slipped 2.0% to $150.8 million and net loss widened to $90.4 million, even as Consolidated Adjusted EBITDA rose to $69.7 million, reflecting ongoing Conway scale‑up costs. Segment results showed strong expansion, with Beverage Solutions revenue up 37.8% and SS&T revenue up 46.6%, while fourth‑quarter net sales jumped 48.3% to $339.5 million and the net loss narrowed slightly.

The company updated its 2026 outlook to target Consolidated Adjusted EBITDA of $90 million to $100 million, implying 29% to 44% growth over 2025 and signaling confidence that recent capacity investments can translate into higher margins. Management said the guidance reflects expected customer demand in the wake of industry consolidation and current trends in ready‑to‑drink glass and can volumes, underscoring Westrock’s ambition to strengthen its role as a key integrated supplier to major beverage brands.

The most recent analyst rating on (WEST) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Westrock Coffee stock, see the WEST Stock Forecast page.