Swiss Water Decaffeinated Coffee, Inc. (SWP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Swiss Water Decaffeinated Coffee, Inc.

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Why is Swiss Water Decaffeinated Coffee, Inc. ?

Poor Management Efficiency with a low ROCE of 6.21%

The company has been able to generate a Return on Capital Employed (avg) of 6.21% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.93% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 17.93%

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) At CAD 2.02 MM has Grown at 51.58%
ROCE(HY) Highest at 2.42%
INVENTORY TURNOVER RATIO(HY) Highest at 5.42%

With ROE of 8.64%, it has a fair valuation with a 0.70 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.76%, its profits have risen by 180.2% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Swiss Water Decaffeinated Coffee, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Swiss Water Decaffeinated Coffee, Inc.

41.94%

0.42

47.98%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.54%

EBIT Growth (5y)

18.23%

EBIT to Interest (avg)

1.46

Debt to EBITDA (avg)

5.22

Net Debt to Equity (avg)

1.88

Sales to Capital Employed (avg)

1.21

Tax Ratio

34.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.21%

ROE (avg)

4.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.75

EV to EBIT

11.21

EV to EBITDA

7.11

EV to Capital Employed

0.90

EV to Sales

0.52

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

8.04%

ROE (Latest)

8.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET SALES(HY)

At CAD 130.44 MM has Grown at 53.19%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.85 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.89 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -1.63 MM

NET PROFIT(Q)

At CAD 0.61 MM has Fallen at -51%

RAW MATERIAL COST(Y)

Grown by 35.82% (YoY

Here's what is working for Swiss Water Decaffeinated Coffee, Inc.

Net Sales

At CAD 130.44 MM has Grown at 53.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 4.85 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Swiss Water Decaffeinated Coffee, Inc.

Net Profit

At CAD 0.61 MM has Fallen at -51%

over average net sales of the previous four periods of CAD 1.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD -1.63 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Raw Material Cost

Grown by 35.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales