Westrock Coffee (WEST) AI Stock Analysis

• Market Cap: $635.49M
• Dividend Yield: N/A
• Average Volume (3M): 367.77K
• 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: 69
• Industry: Packaged Foods
• EPS (TTM): -0.20
• Shares Outstanding: 94,708,070
• 10 Day Avg. Volume: 497,917
• 30 Day Avg. Volume: 367,774
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 9.74
• Enterprise Value/Ebitda: -187.99
• 1Y Price Target: $9.88
• Price Target Upside: 49.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $6.50 ▼(-1.52% Downside)

Westrock Coffee's overall stock score reflects significant financial challenges, including weak profitability and cash flow issues. While the earnings call provided some optimism with record-breaking results and strategic growth, the company's negative valuation metrics and mixed technical indicators weigh heavily on the score. The most significant factor is the need for operational improvements and cash flow management to enhance financial stability.

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.

Partnerships

The company is seeing solid momentum in its single-serve cup and flavor/extracts/ingredients business, which is attracting new partnerships.

Revenue Growth

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.

Negative Factors

Consumer Confidence

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

Consumer Demand

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 Timing

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 (WEST) is a leading integrated coffee, tea, and extract service provider, catering primarily to the retail, hospitality, and foodservice sectors. The company offers a wide range of beverage solutions, including coffee sourcing, roasting, packaging, and distribution, as well as tea and extract products. Westrock Coffee is committed to delivering high-quality products while engaging in sustainable and ethical sourcing practices to support coffee farmers and communities worldwide.

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 has significant financial challenges, marked by weak profitability, declining gross profit margins, and negative cash flows. The slight improvements in debt-to-equity ratio and asset management are not enough to offset the overall financial strain.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	850.73M	864.71M	867.87M	698.14M	550.85M
Gross Profit	153.77M	139.86M	152.76M	145.42M	107.20M
EBITDA	-7.78M	14.92M	4.36M	48.80M	-97.34M
Net Income	-80.30M	-34.58M	-55.46M	-21.31M	-128.87M
Balance Sheet
Total Assets	1.10B	971.51M	744.53M	593.02M	548.14M
Cash, Cash Equivalents and Short-Term Investments	26.15M	37.20M	16.84M	19.34M	16.89M
Total Debt	504.99M	344.96M	216.91M	337.81M	327.71M
Total Liabilities	730.45M	583.56M	457.86M	487.15M	447.22M
Stockholders Equity	371.33M	387.96M	9.27M	-239.71M	-201.75M
Cash Flow
Free Cash Flow	-172.87M	-228.85M	-120.06M	-22.56M	-32.92M
Operating Cash Flow	-13.24M	-64.06M	-56.63M	2.88M	-13.45M
Investing Cash Flow	-145.92M	-168.35M	-74.17M	-22.65M	-411.82M
Financing Cash Flow	156.63M	244.21M	134.68M	23.84M	442.58M

Westrock Coffee Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.60
• 50DMA: Positive
• 100DMA: Positive
• 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 6.6 is below the 20-day moving average (MA) of 6.76, above the 50-day MA of 6.51, and below the 200-day MA of 6.65, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 25.59 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	$419.91M	41.60	14.46%	―	9.19%	-23.91%
HLF	72 Outperform	$918.67M	2.80	-31.74%	―	-2.25%	288.79%
Sector *	63 Neutral	$21.00B	13.77	-6.24%	3.09%	3.49%	-6.25%
THS	61 Neutral	$887.79M	44.93	1.34%	―	-1.52%	―
STKL	59 Neutral	$752.85M	―	-1.34%	―	10.90%	96.02%
WEST	51 Neutral	$635.49M	―	-27.07%	―	13.05%	-72.80%
BGS	48 Neutral	$325.62M	―	-35.36%	18.27%	-6.91%	-83.51%

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.

The most recent analyst rating on (WEST) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Westrock Coffee stock, see the WEST Stock Forecast page.