Westrock Coffee (WEST) AI Stock Analysis

• Market Cap: $561.62M
• Dividend Yield: N/A
• Average Volume (3M): 490.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 13.05%
• EPS Growth: -72.80%
• Country: US
• Employees: 1,408
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Packaged Foods
• EPS (TTM): -0.20
• Shares Outstanding: 94,708,070
• 10 Day Avg. Volume: 619,379
• 30 Day Avg. Volume: 490,599
• 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: 2.40
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: 548.43
• 1Y Price Target: $11.00
• Price Target Upside: 85.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $6.00 ▲(1.18% Upside)

Westrock Coffee's overall stock score is primarily impacted by its financial challenges, including negative profitability and cash flow issues. Technical analysis indicates bearish momentum, and valuation metrics show limited immediate return potential. Despite positive earnings call highlights, financial risks and valuation concerns weigh heavily on the score.

Positive Factors

Cost Management

Green coffee commodity inflation appears to have peaked, with recent pricing showing a decrease from the high levels seen earlier, which could positively impact costs.

Financial Performance

Westrock Coffee Company reported operating results that beat consensus expectations on both the revenue and AEBITDA lines, driven by strong cross selling activity across multiple product lines.

Market Positioning

Westrock is rapidly becoming recognized as the leading integrated coffee beverage producer in the industry, offering strategic and cost advantages with its 'one-stop-shop' production capabilities.

Negative Factors

Consumer Confidence

The continuing pullback in consumer confidence is likely to have driven end market demand below initial expectations, leading to lower revenue estimates for 1Q25.

Revenue Growth Estimates

A conservative approach is being taken with a reduced year-over-year revenue growth estimate for 1Q25 due to declining consumer confidence.

Revenue Timing Challenges

Westrock has recognized challenges with the timing of commercialized product revenues from Conway due to customers working through contractual minimums with old suppliers and the general consumer environment.

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 Coffee generates revenue through multiple streams, primarily focused on the sale of coffee, tea, and extracts. The company sources raw coffee beans directly from farmers and cooperatives, often through sustainable and fair-trade agreements, which are then roasted and processed into a variety of products for different markets. Revenue is generated from both bulk sales to large retailers and foodservice providers, as well as through branded consumer products available in retail outlets. Key partnerships with major retailers and foodservice chains help drive significant sales volume. Additionally, Westrock Coffee offers value-added services such as private label production and beverage product development, further diversifying its revenue streams. The company's commitment to quality and sustainable practices enhances its competitive advantage and supports its market position.

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: 5.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 5.93 is below the 20-day moving average (MA) of 6.53, below the 50-day MA of 6.42, and below the 200-day MA of 6.62, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 27.07 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
LWAY	80 Outperform	$471.26M	44.78	14.46%	―	9.19%	-23.91%
HLF	63 Neutral	$951.67M	2.90	-31.74%	―	-2.25%	288.79%
Sector *	63 Neutral	$20.46B	14.51	-3.60%	3.15%	2.60%	-5.31%
THS	61 Neutral	$893.35M	45.21	1.34%	―	-1.52%	―
STKL	59 Neutral	$746.94M	―	-1.34%	―	10.90%	96.02%
BGS	51 Neutral	$351.22M	―	-35.36%	17.31%	-6.91%	-83.51%
WEST	41 Neutral	$561.62M	―	-27.07%	―	13.05%	-72.80%

Westrock Coffee Corporate Events

Westrock Coffee Confirms Board Elections and Auditor

On June 6, 2025, Westrock Coffee Company held its annual meeting of stockholders virtually, where two key proposals were voted on. The election of four Class III directors to the board was confirmed, and PricewaterhouseCoopers LLP was ratified as the independent registered public accountant for the fiscal year ending December 31, 2025.