Westrock Coffee Co

Consumer Staples
Beverages (Production/Distribution)
www.westrockcoffee.com

Moat Score
Safety Score

Market Cap $611.17M
PE -8
Debt $449.58M
Cash $32.68M
EV $1.03B
FCF -$189.47M

Earnings

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Sales & Net Margins

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Earnings	-$75.65M
EBIT	-$54.40M
ROE	-69%
ROA	-5%
FCF	-$189.47M
Equity	$110.34M
Growth Stability	1
PE	-8.08
PB	5.54
P/FCF	-3.23
P/S	0.73
Price/Cash	0.05
Debt/Equity	4.07
Debt/FCF	-2.37
Net Margins	-9%
Gross Margins	18%
Op. Margins	-7%
Sales Growth YoY	1%
Sales Growth QoQ	6%
Sales CAGR	19%
Equity CAGR	78%
Earnings Growth YoY	-185%

Earnings Growth QoQ	-20%
Sales CAGR 5Y	19%
Equity CAGR 5Y	78%
Earnings CAGR 3Y	20%
Sales CAGR 3Y	20%
Equity CAGR 3Y	179%
Market Cap	$611.17M
Revenue	$836.72M
Assets	$1.08B
Total Debt	$449.58M
Cash	$32.68M
Shares Outstanding	88.32M
EV	1.03B
Moat Score	5%
Safety Score	54%
Working Capital	94.61M
Current Ratio	1.39
Gross Profit	$150.58M
Shares Growth 3y	16%
Equity Growth QoQ	35%
Equity Growth YoY	-13%

Assets & ROA

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Stockholders Equity & ROE

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Westrock Coffee Co is an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the U.S, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to retail, foodservice and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. The company's segment includes Beverage Solutions and Sustainable Sourcing and Traceability. It generates maximum revenue from the Beverage Solutions segment.

SEC Filings

Direct access to Westrock Coffee Co (WEST) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30

Sector Comparison

How does Westrock Coffee Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Westrock Coffee Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Westrock Coffee Co Discounted Cash Flow

Fully customizable DCF calculator online for Westrock Coffee Co.

Years

Calculation mode

= -$1.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$189M	-$1.9B
DCF		-$172M	-$157M	-$142M	-$129M	-$118M	-$107M	-$97M	-$88M	-$80M	-$73M	-$731M
Value	-$1.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-27%	-7%	-9%	-4%	-9%
ROA	-	-	1%	-1%	-5%
ROE	-	-	-662%	-31%	-69%

Bad Net Margins (-8.96%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-1.83	-1.22	-2.37
Debt over Equity	-	-1.68	18.73	2.45	4.07
Growth Stability	-	-	-	-	1

Good Debt/FCF ratio (-2.37)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (4.07)

The company is overleveraged and has a bad balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	27%	24%	-0%	19%
Earnings YoY growth	-	-69%	68%	-55%	-
Equity YoY growth	-	26%	-107%	870%	78%
FCF YoY growth	-	-32%	439%	91%	-