Westrock Coffee (WEST) AI Stock Analysis

• Market Cap: $417.66M
• Dividend Yield: N/A
• Average Volume (3M): 445.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 13.05%
• EPS Growth: -72.80%
• Country: US
• Employees: 1,408
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.20
• Shares Outstanding: 94,708,070
• 10 Day Avg. Volume: 339,786
• 30 Day Avg. Volume: 445,036
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.22
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: 548.43
• 1Y Price Target: $10.00
• Price Target Upside: 126.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $4.50 ▲(2.04% Upside)

Westrock Coffee's stock score is primarily impacted by its financial performance and valuation. The company faces significant financial challenges, including high leverage and negative profitability, which are reflected in its low valuation score. Technical analysis indicates bearish momentum, further weighing on the stock's overall score. Despite positive aspects from the earnings call, such as growth in net sales and strategic investments, these are not enough to offset the financial and technical weaknesses.

Positive Factors

Revenue Growth

Strong revenue growth reflects Westrock's expanding market reach and successful product offerings, indicating robust demand and potential for continued expansion.

Strategic Investments

Investments in new facilities enhance production capacity and product diversity, positioning the company for future growth and competitive advantage in the beverage market.

Cash and Liquidity Position

A strong liquidity position provides financial flexibility to support strategic initiatives and manage potential economic fluctuations, ensuring operational stability.

Negative Factors

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities, potentially impacting long-term financial health.

Negative Profitability

Sustained negative profitability challenges the company's ability to generate shareholder value and reinvest in business operations, necessitating efficiency improvements.

Cash Flow Challenges

Negative cash flows indicate liquidity constraints, limiting the company's capacity to fund operations and growth initiatives without external financing.

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 is facing financial challenges with weak profitability and cash flow issues. The company has negative net income, declining gross profit margins, and negative free cash flow, indicating operational inefficiencies and cash flow management issues. Despite some stability in asset management and a slight improvement in the debt-to-equity ratio, significant improvements are needed.

Income Statement

Westrock Coffee shows weak profitability with negative net income and declining gross profit margins over the past year. The company has experienced a decline in EBIT and EBITDA margins, reflecting operational challenges. Revenue growth is marginal, highlighting limited expansion in the top line.

Balance Sheet

The balance sheet indicates a moderate level of financial stability. The debt-to-equity ratio suggests a high reliance on debt, though improved from prior years. The equity ratio remains relatively low, indicating limited equity financing. There is a moderate return on equity despite negative net income, reflecting potential future improvements.

Cash Flow

Westrock Coffee's cash flow position is concerning, with negative free cash flow and operating cash flow. The operating cash flow to net income ratio is unfavorable, highlighting cash flow inefficiencies. The free cash flow to net income ratio is also negative, suggesting cash flow challenges in supporting operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	944.49M	850.73M	864.71M	867.87M	698.14M	550.85M
Gross Profit	145.56M	153.77M	139.86M	152.76M	145.42M	107.20M
EBITDA	2.46M	-7.78M	14.92M	4.36M	33.37M	-97.34M
Net Income	-87.65M	-80.30M	-34.58M	-55.46M	-21.95M	-128.87M
Balance Sheet
Total Assets	1.16B	1.10B	971.51M	744.53M	593.02M	548.14M
Cash, Cash Equivalents and Short-Term Investments	43.96M	26.15M	37.20M	16.84M	19.34M	16.89M
Total Debt	578.51M	504.99M	344.96M	216.91M	337.81M	327.71M
Total Liabilities	865.55M	730.45M	583.56M	457.86M	487.15M	447.22M
Stockholders Equity	291.93M	371.33M	387.96M	284.20M	103.14M	98.83M
Cash Flow
Free Cash Flow	-143.08M	-172.87M	-228.85M	-120.06M	-22.56M	-32.92M
Operating Cash Flow	-26.63M	-13.24M	-64.06M	-56.63M	2.88M	-13.45M
Investing Cash Flow	-105.17M	-145.92M	-168.35M	-74.17M	-22.65M	-411.82M
Financing Cash Flow	158.11M	156.63M	244.21M	134.68M	23.84M	442.58M

Westrock Coffee Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.41 is below the 20-day moving average (MA) of 4.76, below the 50-day MA of 5.06, and below the 200-day MA of 6.16, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, 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	―	$428.88M	92.57	17.44%	―	19.34%	-12.64%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JVA	―	$23.29M	12.56	7.17%	―	17.92%	64.96%
FARM	―	$38.02M	-2.60	-32.58%	―	0.35%	-272.31%
BRCC	―	$347.52M	-9.76	-89.88%	―	-4.59%	-19.09%
LSF	―	$51.40M	-46.17	-8.34%	―	22.79%	74.00%
WEST	―	$417.66M	―	-27.07%	―	13.05%	-72.80%

Westrock Coffee Corporate Events

Westrock Coffee’s Earnings Call: Growth Amid Challenges

Westrock Coffee Company recently held its earnings call, revealing a mix of optimism and challenges. The company reported significant growth in net sales and adjusted EBITDA, alongside a successful start-up of new facilities and strong performance in the Sustainable Sourcing & Traceability segment. However, these positive developments were offset by a net loss due to investment costs, challenges in ramping up the new facility, and increased pressure on working capital due to tariffs. While the company is optimistic about future prospects, it also acknowledged current challenges and uncertainties.

Westrock Coffee Reports Strong Sales Growth in Q2 2025

Westrock Coffee Company is a leading provider of integrated coffee, tea, flavors, extracts, and ingredients solutions, serving various industries worldwide with a strong focus on sustainability and traceability.