Westrock Coffee (WEST) AI Stock Analysis

• Market Cap: $374.71M
• Dividend Yield: N/A
• Average Volume (3M): 440.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 28.89%
• EPS Growth: -13.96%
• Country: US
• Employees: 1,408
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.11
• Shares Outstanding: 96,824,910
• 10 Day Avg. Volume: 511,164
• 30 Day Avg. Volume: 440,417
• PEG Ratio: -0.07
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -3.33
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $8.50
• Price Target Upside: 119.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $4.00 ▲(3.36% Upside)

Westrock Coffee's overall stock score is primarily impacted by its challenging financial performance, characterized by high leverage and negative profitability. While the earnings call and corporate events indicate strategic efforts to improve financial health, technical indicators and valuation metrics remain weak, reflecting ongoing risks and uncertainties.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective sales strategies, enhancing long-term business sustainability.

Product Line Expansion

Diversifying product offerings can capture new market segments and drive future growth, strengthening competitive positioning.

Capital Infusion

The capital raise enhances financial flexibility, supporting strategic initiatives and mitigating risks from high coffee prices and tariffs.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth and withstand economic downturns.

Negative Cash Flow

Persistent cash flow challenges can hinder operational flexibility and necessitate strategic adjustments to improve liquidity.

Profitability Concerns

Ongoing profitability issues highlight the need for improved cost management and operational efficiency to ensure long-term viability.

Westrock Coffee Business Overview & Revenue Model

Company Description

Westrock Coffee Company, Inc. is a leading provider of coffee and tea products, primarily serving the foodservice and retail sectors. The company is involved in the sourcing, roasting, and packaging of high-quality coffee and tea, along with offering personalized solutions to its customers. Westrock operates within the coffee and beverage industry, focusing on sustainability and ethical sourcing practices to deliver premium products that meet diverse consumer preferences.

How the Company Makes Money

Westrock Coffee generates revenue through multiple key streams, including the sale of roasted coffee and tea products to foodservice clients, retail chains, and convenience stores. The company also offers customized beverage solutions, which include private label products, to meet specific customer needs. Additionally, Westrock benefits from significant partnerships with well-known brands and retailers, which amplify its market reach and distribution capabilities. The company's focus on sustainability and direct sourcing contributes to its competitive advantage, allowing it to capture premium pricing and build long-term relationships with customers and suppliers.

Westrock Coffee Financial Statement Overview

Summary

Westrock Coffee faces significant financial challenges. Despite revenue growth, profitability and cash flow are under pressure. High leverage and negative returns on equity highlight financial risks, necessitating strategic initiatives to enhance operational efficiency, manage debt, and improve cash flow.

Income Statement

Westrock Coffee's income statement reflects a challenging financial position. The company has experienced a modest revenue growth rate of 8.31% TTM, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin has decreased from previous periods, indicating pressure on cost management. Overall, the income statement suggests a need for improved operational efficiency and cost control.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.98 TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is relatively low, suggesting limited asset backing by equity. These factors highlight the need for strategic financial management to improve balance sheet health.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges in covering net losses. The free cash flow to net income ratio is positive, but primarily due to significant net losses. This suggests liquidity constraints and the need for cash flow improvement strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	850.73M	864.71M	867.87M	698.14M	550.85M
Gross Profit	149.88M	153.77M	139.86M	152.76M	145.42M	107.20M
EBITDA	10.97M	-7.78M	14.92M	4.36M	33.37M	-97.34M
Net Income	-92.49M	-80.30M	-34.58M	-55.19M	-21.95M	-129.17M
Balance Sheet
Total Assets	1.18B	1.10B	971.51M	746.21M	593.02M	548.14M
Cash, Cash Equivalents and Short-Term Investments	48.38M	26.15M	37.20M	16.84M	19.34M	16.89M
Total Debt	598.74M	504.99M	340.15M	225.34M	337.81M	327.71M
Total Liabilities	892.98M	730.45M	583.56M	459.55M	487.15M	447.22M
Stockholders Equity	285.03M	371.33M	387.96M	284.20M	103.14M	98.83M
Cash Flow
Free Cash Flow	-106.36M	-172.87M	-228.85M	-120.06M	-22.56M	-32.92M
Operating Cash Flow	-26.29M	-13.24M	-64.06M	-56.63M	2.88M	-13.45M
Investing Cash Flow	-69.56M	-145.92M	-168.35M	-74.17M	-22.65M	-411.82M
Financing Cash Flow	115.15M	156.63M	244.21M	134.68M	23.84M	442.58M

Westrock Coffee Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.87
• 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 3.87 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.48, and below the 200-day MA of 5.86, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.46 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	76 Outperform	$466.29M	100.26	17.44%	―	19.34%	-12.64%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JVA	53 Neutral	$20.38M	10.99	7.17%	―	17.92%	64.96%
WEST	47 Neutral	$374.71M	―	-27.64%	―	28.89%	-13.96%
FARM	45 Neutral	$33.05M	―	-33.46%	―	-1.58%	-78.08%
LSF	45 Neutral	$25.33M	―	-14.63%	―	17.73%	-34.71%
BRCC	44 Neutral	$328.75M	-9.39	-35.78%	―	-3.42%	-85.49%

Westrock Coffee Corporate Events

Westrock Coffee Issues $30M Convertible Notes

On November 4, 2025, Westrock Coffee Company issued $30 million in convertible senior notes due 2031, which are unsecured and bear a 5% interest rate. The notes are convertible into common stock under specific conditions and are part of a strategic move to strengthen the company’s financial position. Additionally, Westrock Coffee amended its existing credit agreement to adjust leverage and interest coverage ratios, reflecting a proactive approach to financial management. The company reported a 60.7% increase in net sales for the third quarter of 2025, with significant growth in its Beverage Solutions and Sustainable Sourcing & Traceability segments. Despite a net loss, the company achieved record results, driven by strategic investments and a customer-centered model, aiming to become a leading supplier to global beverage brands.