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Westrock Coffee
(NASDAQ:WEST)
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Rating:57Neutral
Price Target:
$8.50
▲(4.42% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial fundamentals—negative equity, continuing losses, and (per financial statements) negative free cash flow—despite strong top-line momentum. Offsetting these risks, the earnings call pointed to a clear operational inflection (record EBITDA, reaffirmed guidance, early FCF positivity and lower CapEx) and technicals show moderately constructive momentum. Valuation support is limited due to negative earnings and no dividend.
Positive Factors
Improving EBITDA and revenue momentum
A record quarterly adjusted EBITDA and strong H1 sales growth reflect durable operational leverage. Sustained EBITDA expansion implies improving unit economics and margin scalability, supporting deleveraging, reinvestment, and more predictable cash generation over the next 2–6 months.
Negative Factors
Negative shareholders' equity and strained balance sheet
Negative shareholders' equity is a structural red flag that constrains financial flexibility, raises refinancing and covenant risk, and limits strategic options. Even with operational gains, restoring a healthy equity base will take sustained profitability and/or capital actions over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving EBITDA and revenue momentum
A record quarterly adjusted EBITDA and strong H1 sales growth reflect durable operational leverage. Sustained EBITDA expansion implies improving unit economics and margin scalability, supporting deleveraging, reinvestment, and more predictable cash generation over the next 2–6 months.
Read all positive factors
Westrock Coffee Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas drive growth and profitability for Westrock Coffee.
Shows how revenue is distributed across different business segments, highlighting which areas drive growth and profitability for Westrock Coffee.
Data provided by:
The Fly
The FlyWestrock Coffee (WEST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$793.71M
Dividend YieldN/A
Average Volume (3M)706.23K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth38.57%
EPS Growth29.71%
CountryUS
Employees1,393
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.66
Shares Outstanding97,627,390
10 Day Avg. Volume434,862
30 Day Avg. Volume706,232
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)1.43
Price to Sales (P/S)0.33
P/FCF Ratio-3.60
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.00Price Target Upside22.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$1.31B
Westrock Coffee Business Overview & Revenue Model
Company Description
Westrock Coffee Company, LLC operates as a comprehensive beverage company that handles the entire coffee production process, from roasting and manufacturing to distribution. The organization structures its activities into two core divisions: Bever...
How the Company Makes Money
Westrock primarily makes money by selling coffee, tea, and beverage products and ingredient solutions to business customers under both customer-owned (private label) and Westrock-owned brands. Key revenue streams include: (1) Finished coffee and t...
Westrock Coffee Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial momentum: record consolidated adjusted EBITDA, early free cash flow generation, meaningful revenue growth (Q2 sales +8.8%, H1 sales +24%), deleveraging (net leverage 3.36x), and a fully commercialized Conway facility driving Beverage Solutions growth (+~17% net sales; Beverage EBITDA +13%). Challenges remain—Q2 gross profit dipped due to Conway-related D&A and a SS&T mark-to-market adjustment, reported net loss persists at $13.7 million, and there was a quarterly SS&T EBITDA decline and lost single-serve volumes tied to an acquired customer. Overall the positives (record EBITDA, cash generation, reduced CapEx and strong commercial pipeline) materially outweigh the lowlights, supporting an optimistic outlook.Positive Updates
Record Consolidated Adjusted EBITDA
Second quarter consolidated adjusted EBITDA was $21.3 million, a second-quarter record and up nearly 39% year-over-year; first half consolidated adjusted EBITDA was $47.3 million—more than twice the first half of 2025.
Negative Updates
Quarterly Gross Profit Pressure
Consolidated gross profit in Q2 was $37.7 million, down $3.6 million year-over-year, attributed to $4.1 million of incremental depreciation and amortization from Conway and a roughly $2 million negative noncash mark-to-market adjustment in SS&T.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Adjusted EBITDA
Second quarter consolidated adjusted EBITDA was $21.3 million, a second-quarter record and up nearly 39% year-over-year; first half consolidated adjusted EBITDA was $47.3 million—more than twice the first half of 2025.
Read all positive updates
Company Guidance
Westrock reaffirmed 2026 consolidated adjusted EBITDA guidance of $90 million to $100 million, while noting strong year-to-date and quarter momentum: Q2 consolidated adjusted EBITDA was a record $21.3M (up ~39% YoY) and H1 consolidated adjusted EBITDA was $47.3M (more than 2x H1 2025), consolidated net sales were ~$306M in Q2 (+8.8% YoY) and ~$614M for the first six months (+24% YoY), Beverage Solutions net sales grew ~17% with segment adjusted EBITDA of $22.2M (+13% YoY), SS&T segment adjusted EBITDA was $2.0M in Q2 and $8.4M YTD (+>60% YoY), consolidated gross profit was $37.7M in Q2 (H1 $83.5M, +19% YoY), operating loss narrowed to $1.4M in Q2 (YTD operating income positive vs. $28M loss YTD 2025), reported Q2 net loss narrowed to $13.7M, the company generated $20.2M of free cash flow in Q2 and is FCF positive for the year-to-date (achieved a quarter early), Q2 CapEx was ~$6.5M with 2026 CapEx guidance of ~ $30M (down from $160M in 2024 and $89M in 2025, with ~half of $30M expected to be maintenance), Beverage Solutions secured net leverage improved to 3.36x, unrestricted cash plus revolver availability was ~$73M at quarter end, the majority of the Beverage Solutions credit facility maturity was extended to November 2028 and covenant relief was terminated early, and management expects Conway to drive material revenue and profit growth in the back half of 2026 and into 2027 while new single-serve volumes are expected to start late 2026 with full replacement targeted by end of 2027.Westrock Coffee Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.19B | 850.73M | 864.71M | 867.87M | 698.14M |
| Gross Profit | 163.81M | 122.65M | 153.77M | 139.86M | 152.76M | 145.42M |
| EBITDA | 53.96M | 19.39M | -7.78M | 14.92M | 4.36M | 33.37M |
| Net Income | -63.77M | -90.44M | -80.30M | -34.58M | -55.19M | -21.95M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.18B | 1.10B | 971.51M | 746.21M | 593.02M |
| Cash, Cash Equivalents and Short-Term Investments | 38.23M | 49.88M | 26.15M | 37.20M | 16.84M | 19.34M |
| Total Debt | 568.08M | 581.61M | 504.99M | 340.15M | 225.34M | 337.81M |
| Total Liabilities | 843.79M | 904.34M | 730.45M | 583.56M | 459.55M | 487.15M |
| Stockholders Equity | 242.06M | 271.63M | 371.33M | 387.96M | 284.20M | 103.14M |
Cash Flow | ||||||
| Free Cash Flow | -15.76M | -107.81M | -172.87M | -228.85M | -120.06M | -22.56M |
| Operating Cash Flow | 24.96M | -19.01M | -13.24M | -64.06M | -56.63M | 2.88M |
| Investing Cash Flow | -23.50M | -82.18M | -145.92M | -168.35M | -74.17M | -22.65M |
| Financing Cash Flow | -5.40M | 136.71M | 156.63M | 244.21M | 134.68M | 23.84M |
Westrock Coffee Technical Analysis
Positive
8.14
Price Trends
8.10
Positive
7.51
Positive
5.93
Positive
Market Momentum
0.09
Positive
49.39
Neutral
31.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEST, the sentiment is Positive. The current price of 8.14 is below the 20-day moving average (MA) of 8.25, above the 50-day MA of 8.10, and above the 200-day MA of 5.93, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 31.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEST.
Westrock Coffee Risk Analysis
Westrock Coffee disclosed 33 risk factors in its most recent earnings report. Westrock Coffee reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westrock Coffee Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $19.75M | 13.01 | 5.41% | 2.33% | 17.36% | -58.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $787.58M | 108.20 | 13.05% | ― | 46.98% | 30.66% | |
57 Neutral | $793.71M | -12.33 | -24.25% | ― | 38.57% | 29.71% | |
53 Neutral | $214.00M | -25.58 | -8.09% | ― | 10.49% | 76.67% | |
49 Neutral | $46.00M | -10.64 | -11.36% | ― | 73.26% | -239.94% |
* Consumer Defensive Sector Average
WEST
Westrock Coffee
8.06
2.55
46.28%
JVA
Coffee Holding Co
3.46
-0.55
-13.76%
MAMA
Mama's Creations
16.02
7.94
98.27%
LSF
Laird Superfood
3.88
-2.05
-34.57%
BRCC
BRC
8.38
-7.12
-45.94%
Westrock Coffee Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Westrock Coffee Extends Credit Facility, Ends Covenant Relief
Positive
Jun 30, 2026
On June 30, 2026, Westrock Coffee Company amended its credit agreement, extending the maturity of about $361 million of its loans and commitments from August 29, 2027, to November 29, 2028, while roughly $26 million will still mature in 2027, and ...
Executive/Board ChangesShareholder Meetings
Westrock Coffee Shareholders Elect Directors, Ratify Auditor
Neutral
Jun 5, 2026
At its June 5, 2026 virtual annual meeting of stockholders, Westrock Coffee Company shareholders elected four Class I director nominees—Mark A. Edmunds, Joe T. Ford, Kenneth M. Parent, and Oluwatoyin Umesiri—to the board for one-year t...
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.