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Swiss Water Decaffeinated Coffee Inc
(TSX:SWP)
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Rating:65Neutral
Price Target:
C$10.00
▲(31.41% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by improving fundamentals and cash flow, reinforced by a constructive earnings update highlighting strong volume growth, margin/EBITDA expansion, and ongoing debt reduction. These positives are tempered by a leveraged balance sheet and an overextended technical setup (very high RSI/Stoch), while valuation appears only moderate based on the provided P/E and no stated dividend yield.
Positive Factors
Volume and profitability growth
Strong volume growth combined with substantial gross-profit and EBITDA expansion indicates improving operating leverage and customer demand. If sustained, higher throughput can support better fixed-cost absorption and strengthen earnings power over the next several quarters.
Negative Factors
Elevated leverage
Debt remains high relative to equity even after recent repayments, leaving Swiss Water exposed to greater financing pressure than a lightly leveraged business. Elevated leverage can restrict investment choices and reduce the cushion available if margins or volumes deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Volume and profitability growth
Strong volume growth combined with substantial gross-profit and EBITDA expansion indicates improving operating leverage and customer demand. If sustained, higher throughput can support better fixed-cost absorption and strengthen earnings power over the next several quarters.
Read all positive factors
Swiss Water Decaffeinated Coffee Inc (SWP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$88.25M
Dividend Yield3.61%
Average Volume (3M)8.34K
Price to Earnings (P/E)18.7
Beta (1Y)0.62
Revenue Growth14.11%
EPS Growth243.65%
CountryCA
Employees86
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.49
Shares Outstanding9,592,302
10 Day Avg. Volume10,554
30 Day Avg. Volume8,338
Financial Highlights & Ratios
PEG Ratio1.19
Price to Book (P/B)0.72
Price to Sales (P/S)0.16
P/FCF Ratio7.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.29
Revenue Forecast (FY)C$255.86M
Swiss Water Decaffeinated Coffee Inc Business Overview & Revenue Model
Company Description
Swiss Water Decaffeinated Coffee Inc. operates globally, including in Canada and the United States, as a specialist in decaffeinating green coffee. The company processes and then supplies these decaffeinated green coffee beans to a diverse cliente...
How the Company Makes Money
SWP makes money primarily by providing decaffeination services and related sales of decaffeinated green coffee. Its main revenue model centers on (1) processing fees for decaffeinating customers’ green coffee (contract/toll processing) and (2) sel...
Swiss Water Decaffeinated Coffee Inc Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a materially positive operational and financial inflection: strong volume growth, sharply improved gross profit and adjusted EBITDA (including an LTM record), robust operating cash generation and meaningful debt reduction. These positives outweigh the headline revenue decline (driven by lower coffee prices), elevated operating expenses, remaining market volatility and some mark-to-market exposure. Management is pursuing prudent capital allocation (debt paydown, NCIB, and cautious capacity investment) which supports a constructive near-term outlook, though commodity volatility and inventory/ liquidity considerations remain watchpoints.Positive Updates
Strong Volume Growth
Total processing volumes increased 17% in Q2 and 8% year-to-date versus prior year. Shipments to importers rose 26% in Q2, shipments to roasters increased 5%, specialty volumes +17% and commercial volumes +17% in the quarter.
Negative Updates
Revenue Decline Despite Volume Growth
Q2 revenue was $66.0M, down 3% year-over-year (Q2 2025: $67.7M). Six-month revenue was $123.4M, down 5% from $129.9M, primarily driven by lower NYC futures prices and tariff pass-throughs despite higher volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Volume Growth
Total processing volumes increased 17% in Q2 and 8% year-to-date versus prior year. Shipments to importers rose 26% in Q2, shipments to roasters increased 5%, specialty volumes +17% and commercial volumes +17% in the quarter.
Read all positive updates
Company Guidance
The company guided that it will seek TSX approval for a normal course issuer bid (NCIB) for up to 600,000 shares (timing subject to TSX), will continue prioritizing debt reduction (repaid $12.0M on the operating facility, $2.8M construction debt and $0.5M EDC YTD; operating facility balance $27.5M, maturity extended to June 23, 2028), and is evaluating targeted capacity investments expected to be funded from internally generated cash with little new debt and, if executed, could add roughly 5–10% instantaneous capacity with work potentially deployed into Q2 2027; inventories are expected to remain at or near current pound levels to support spot demand (inventory down $10.5M, 23% from Dec 31), the order book extends into Q1 2027, and management will continue to focus on volume, gross profit, adjusted EBITDA and cash generation—notable metrics cited on the call include Q2 volumes +17% (YTD +8%), Q2 revenue $66.0M (‑3% YoY) and YTD $123.4M (‑5%), Q2 gross profit $10.2M (+94%), Q2 adjusted EBITDA $5.3M (YTD $9.6M, trailing‑12‑month adj. EBITDA $17.1M), NYC averages of USD 2.78/lb in Q2 (‑23% YoY) and USD 2.97/lb YTD (‑19% YoY), cash $5.9M, net cash from operations $10.7M in Q2 ($16.2M YTD), and an estimated timeline to begin utilizing tax loss carryforwards of roughly 3–5 years.Swiss Water Decaffeinated Coffee Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 252.17M | 258.72M | 173.13M | 166.28M | 176.94M | 125.08M |
| Gross Profit | 32.28M | 26.59M | 26.19M | 18.80M | 26.09M | 17.61M |
| EBITDA | 23.53M | 19.02M | 17.83M | 16.59M | 20.42M | 12.89M |
| Net Income | 4.71M | 1.56M | 1.27M | -528.00K | 2.39M | 496.00K |
Balance Sheet | ||||||
| Total Assets | 195.73M | 208.86M | 216.92M | 200.34M | 219.04M | 168.25M |
| Cash, Cash Equivalents and Short-Term Investments | 5.89M | 6.61M | 8.51M | 11.09M | 3.76M | 4.25M |
| Total Debt | 98.06M | 110.94M | 117.60M | 116.58M | 115.68M | 88.57M |
| Total Liabilities | 134.66M | 150.13M | 162.05M | 144.48M | 164.13M | 112.65M |
| Stockholders Equity | 61.07M | 58.73M | 54.87M | 55.86M | 54.91M | 55.59M |
Cash Flow | ||||||
| Free Cash Flow | 31.89M | 6.00M | 1.18M | 10.63M | -27.01M | -20.09M |
| Operating Cash Flow | 32.96M | 7.32M | 2.14M | 30.55M | -1.04M | -6.38M |
| Investing Cash Flow | -1.07M | -1.32M | -963.00K | -19.55M | -24.61M | -13.72M |
| Financing Cash Flow | -30.79M | -7.91M | -3.75M | -3.67M | 25.16M | 21.59M |
Swiss Water Decaffeinated Coffee Inc Technical Analysis
Positive
7.61
Price Trends
6.56
Positive
6.00
Positive
5.27
Positive
Market Momentum
0.71
Negative
89.67
Negative
93.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SWP, the sentiment is Positive. The current price of 7.61 is below the 20-day moving average (MA) of 7.74, above the 50-day MA of 6.56, and above the 200-day MA of 5.27, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 89.67 is Negative, neither overbought nor oversold. The STOCH value of 93.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SWP.
Swiss Water Decaffeinated Coffee Inc Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$15.85B | 31.90 | 7.45% | 2.05% | -4.63% | ― | |
65 Neutral | C$88.25M | 18.68 | 7.97% | 3.61% | 14.11% | 243.65% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
50 Neutral | C$4.04B | 47.20 | 4.19% | 4.46% | 20.43% | -21.27% | |
45 Neutral | C$20.18M | -1.39 | 338.06% | ― | 556.85% | -11.49% | |
43 Neutral | C$29.01M | -17.26 | 30.14% | ― | 32.91% | 55.73% |
* Consumer Defensive Sector Average
TSE:SWP
Swiss Water Decaffeinated Coffee Inc
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4.73
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Swiss Water Decaffeinated Coffee Inc Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Strategem Capital Lifts NAV, Restores TSX-V Compliance on Strong Investment Gains
Positive
Jul 31, 2026
Strategem Capital reported that its net asset value per share rose to $1.39 as of June 30, 2026, up from $1.19 at year-end 2025, even as its shares last traded at $0.89 on July 17, 2026. The company has deployed 98% of its capital into short-term ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.