Bedrijfsoverzicht
Coffee Holding Co., Inc. is engaged in the manufacturing, roasting, packaging, marketing, and distribution of roasted and blended coffees across the United States, Australia, Canada, England, and China. The company also provides wholesale green coffee products, including unroasted raw beans, to a diverse clientele ranging from large to small roasters. This entity operates within the Consumer Defensive sector, specifically under the Packaged Foods industry, which typically suggests a business model focused on providing essential goods with relatively stable demand cycles. With a market capitalization of $25.23M and annual revenue of $100.54M, the company employs a workforce of 92 individuals. These financial figures indicate that Coffee Holding Co., Inc. operates as a small-cap entity with a modest revenue footprint relative to major industry peers, positioning it as a niche player in the global coffee supply chain rather than a dominant market leader.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $100.54M, generating a net income of $1.90M and an EBITDA of $3.70M. The significant gap between the total revenue and the net income reveals a substantial cost structure, where operating expenses, cost of goods sold, and taxes consume approximately 98.1% of every dollar generated before interest and taxes. Free cash flow stands at $1.65M, which indicates that the company retains sufficient cash after capital expenditures to fund operations, pay down debt, or potentially invest in production capacity. The gross margin is recorded at 16.6%, suggesting that the cost to produce and source the coffee is high relative to the selling price, typical for raw agricultural commodities. The operating margin sits at 9.3%, while the profit margin is 1.9%, indicating that for every dollar of sales, only a small fraction translates to bottom-line earnings after all operating costs are deducted. In terms of liquidity and leverage, the company holds $2.75M in cash against $4.83M in total debt, resulting in a debt-to-equity ratio of 16.78, which points to a leveraged balance sheet where debt obligations exceed liquid cash reserves. Despite the leverage, the current ratio of 3.06 demonstrates strong short-term liquidity, implying that the company possesses more than three times the current assets necessary to cover its current liabilities. Return on equity is measured at 6.8%, and return on assets is 4.6%, metrics that reflect the efficiency with which management utilizes shareholder capital and total assets to generate profits.
Waarderingsbeoordeling
The valuation metrics show a trailing P/E ratio of 13.00 and a forward P/E of 11.05. The difference between the trailing and forward multiples implies that the market expects earnings growth in the future, as the forward P/E is lower, suggesting that analysts anticipate profitability will improve or that the stock price will adjust to reflect higher expected earnings per share. The price-to-book ratio is 0.88, indicating that the market values the company at less than one times its book value, which often suggests the stock is trading at a discount relative to its net asset value. Additionally, the price-to-sales ratio is 0.25, and the EV/EBITDA stands at 7.39, both of which are alternative valuation metrics suggesting a conservative entry point relative to peers with higher multiples. Regarding trading ranges, the 52-week high is $5.63 and the 52-week low is $2.93; without a specific current price provided in the facts, the exact percentage deviation cannot be calculated, but the range defines the volatility envelope over the past year. The beta value is 1.42, which means the stock exhibits price volatility that is 42% higher than the broader market, indicating higher sensitivity to general market movements compared to a beta of 1.0.
Growth & Income
The company achieved a revenue growth rate of 20.0% year-over-year and an earnings growth rate of 42.9% year-over-year. The fact that earnings are growing significantly faster than revenue implies that the company is improving its cost efficiency, scaling operations, or benefiting from pricing power that allows margins to expand as sales volume increases. Since the dividend yield is 1.8% and the payout ratio is 0.0%, the company does not distribute earnings to shareholders but instead retains all profits. This retention strategy suggests that the management team prioritizes reinvesting earnings into business growth, such as expanding distribution networks or upgrading roasting technology, rather than providing immediate income to investors. The overall growth and income profile is characterized by robust double-digit earnings expansion and a zero-dividend policy, catering primarily to growth-oriented investors rather than those seeking current yield.