Swiss Water Decaffeinated Coffee Inc. Fundamental Analysis (TSX: SWP.TO)
Swiss Water Decaffeinated Coffee Inc. Fundamental Analysis (TSX: SWP.TO)
Swiss Water Decaffeinated Coffee Inc. (TSX: SWP.TO) shows moderate financial fundamentals with a PE ratio of 14.64, profit margin of 1.87%, and ROE of 7.97%. The company generates $0.3B in annual revenue with strong year-over-year growth of 49.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWP.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSWP.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSWP.TO trades at attractive valuation levels.
Growth Score
ExcellentSWP.TO delivers strong and consistent growth momentum.
Financial Health Score
ModerateSWP.TO shows balanced financial health with some risks.
Profitability Score
WeakSWP.TO struggles to sustain strong margins.
Key Financial Metrics
Is SWP.TO Expensive or Cheap?
P/E Ratio
SWP.TO trades at 14.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SWP.TO's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Swiss Water Decaffeinated Coffee Inc. at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.98 times EBITDA. This is generally considered low.
How Well Does SWP.TO Make Money?
Net Profit Margin
For every $100 in sales, Swiss Water Decaffeinated Coffee Inc. keeps $1.87 as profit after all expenses.
Operating Margin
Core operations generate 5.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.97 in profit for every $100 of shareholder equity.
ROA
Swiss Water Decaffeinated Coffee Inc. generates $2.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Swiss Water Decaffeinated Coffee Inc. produces operating cash flow of $32.96M, showing steady but balanced cash generation.
Free Cash Flow
Swiss Water Decaffeinated Coffee Inc. generates strong free cash flow of $31.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.32 in free cash annually.
FCF Yield
SWP.TO converts 46.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SWP.TO Stacks Against Its Sector Peers
| Metric | SWP.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.64 | 21.73 | Better (Cheaper) |
| ROE | 7.97% | 661.00% | Weak |
| Net Margin | 1.87% | -2335.00% (disorted) | Weak |
| Debt/Equity | 1.61 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.88 | 2.28 | Neutral |
| ROA | 2.41% | 313.00% | Weak |
SWP.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Swiss Water Decaffeinated Coffee Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
152.24%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-49.58%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
59.20%
Industry Style: Defensive, Dividend, Low Volatility
High Growth