Seeking Alpha • Jun 30

Westrock Coffee: It's Not Too Late To Invest

Summary Westrock Coffee Company has had high volatility in the past few years, as the company's earnings have disappointed market expectations. WEST targets a shift to higher-value product categories to grow sales and margins. The massive Conway facility's ramp-up and WEST's Palantir partnership create an attractive turnaround case. WEST stock discounts the company's earnings potential. I estimate 39% upside to $11.4. Read the full article on Seeking Alpha

Analysis Article • May 11

Westrock Coffee Company (NASDAQ:WEST) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Westrock Coffee Company ( NASDAQ:WEST ) just released its latest quarterly results and things are looking bullish...

Analysis Article • Feb 05

Westrock Coffee Company (NASDAQ:WEST) Soars 27% But It's A Story Of Risk Vs Reward

The Westrock Coffee Company ( NASDAQ:WEST ) share price has done very well over the last month, posting an excellent...

Analysis Article • Nov 10

Earnings Release: Here's Why Analysts Cut Their Westrock Coffee Company (NASDAQ:WEST) Price Target To US$10.20

It's been a sad week for Westrock Coffee Company ( NASDAQ:WEST ), who've watched their investment drop 13% to US$3.87...

Analysis Article • Sep 09

It's Down 27% But Westrock Coffee Company (NASDAQ:WEST) Could Be Riskier Than It Looks

Westrock Coffee Company ( NASDAQ:WEST ) shareholders that were waiting for something to happen have been dealt a blow...

Seeking Alpha • Feb 23

Westrock Coffee Company Offers Potential, But It's Too Early For An Upgrade

Summary I upgraded Westrock Coffee Company from ‘sell’ to ‘hold’ due to improving future prospects, but the market has so far disagreed with my stance. Q3 2024 revenue was $220.9M, with strong growth in Sustainable Sourcing & Traceability, but a 7.2% decline in Beverage Solutions due to macroeconomic challenges. Profitability worsened with net income dropping to negative $14.2M, though operating cash flow improved significantly from negative $39.4M to negative $0.3M. Future growth looks promising with expansion plans and a projected EBITDA of $80M-$100M for 2025, but I maintain a ‘hold’ rating due to uncertainties. Read the full article on Seeking Alpha

Seeking Alpha • Dec 10

Westrock Coffee: Not Enough Progress And Uncertainty Ahead

Summary Westrock Coffee Company's performance has been lackluster with declining sales and fluctuating margins, leading to a hold rating due to numerous risks and uncertainties. The company's revenue in Q3 '24 was $220.9m, missing estimates by $17.5m, and its profitability metrics remain negative. High coffee prices could either improve revenue or further squeeze margins, creating a double-edged sword for WEST stock's future performance. With $22.3m in cash against $326m in long-term debt, Westrock's financial position is weak, adding to the investment risks. Read the full article on Seeking Alpha

Analysis Article • Nov 10

US$11.40: That's What Analysts Think Westrock Coffee Company (NASDAQ:WEST) Is Worth After Its Latest Results

As you might know, Westrock Coffee Company ( NASDAQ:WEST ) last week released its latest third-quarter, and things did...

Seeking Alpha • Sep 26

Westrock Coffee Company: A Speculative Upgrade Is Appropriate

Summary Despite previous bearish sentiment, Westrock Coffee Company is upgraded to a speculative “hold” due to management's optimistic outlook and potential catalysts for future growth. The company’s revenue mix shows strengths in Beverage Solutions and Sustainable Sourcing & Traceability, but overall financial performance remains mixed with ongoing challenges. Significant investments in new facilities are expected to enhance future profitability, though current high costs and industry conditions present short-term hurdles. High coffee prices and increased global production may impact future sales and profitability, creating a binary outlook for Westrock Coffee Company. Read the full article on Seeking Alpha

Analysis Article • Aug 05

We Think Westrock Coffee (NASDAQ:WEST) Has A Fair Chunk Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Analysis Article • Jun 13

Calculating The Fair Value Of Westrock Coffee Company (NASDAQ:WEST)

Key Insights Westrock Coffee's estimated fair value is US$11.89 based on 2 Stage Free Cash Flow to Equity Westrock...

Analysis Article • Dec 12

A Piece Of The Puzzle Missing From Westrock Coffee Company's (NASDAQ:WEST) 30% Share Price Climb

Westrock Coffee Company ( NASDAQ:WEST ) shareholders are no doubt pleased to see that the share price has bounced 30...

Seeking Alpha • Oct 13

Westrock Coffee: Riding The Secular Tailwinds Within The Coffee Industry

Summary WEST has a large addressable market opportunity in the coffee market. WEST is a scaled player that is able to benefit greatly from its customers’ international reach. WEST proprietary technology enables traceability is a strong value proposition to clients with focus on ESG factors. Description I believe Westrock Coffee (WEST) is worth $17.16, representing 75% upside from the date of writing (Oct 12, 2022). WEST is an established player in a large industry benefiting from secular uptrends. This along with the growth levers that it could pull makes this an attractive investment opportunity. In my opinion, the market is not reflecting WEST's true value today because of the weak macro-environment and sentiment. WEST stock price should reflect its intrinsic value as long as it can keep being the leader and meet its guidance. Company overview WEST is a leading integrated coffee, tea, flavors, extracts, and ingredient solutions provider in the United States. It provides services like coffee sourcing, supply chain management, product development, roasting, and distribution to retail, packaging, food service, restaurants, convenience stores, travel centers, non-commercial accounts, CPG, and hospitality industries around the world. Large addressable market opportunity Research from Global Data has shown us that the wholesale global coffee and tea industry, which was $318 in 2021, is expected to increase by 6.3% between 2021 and 2025, according to WEST. One would expect that the growth would stop for a couple of years before picking up again. However, that is not the case as the number keeps increasing as the days pass. The reason for this growth is attributed to the shifting preferences of the younger generation. Millennials and Generation Z now prefer cold coffee, unlike prior generations that always loved their coffee hot, and I am not surprised that these trends are gradually being passed down to Generation Z. Statistics show us that Cold Brew Coffee and Iced Coffee menu penetration has gone from 2.6% and 12.8% in 2016 to 10.2% and 15.7% in 2021 (Source: WEST S-1). WEST investor presentation Jun 2022 It is also very important to note that this generational shift in the United States and around the world plays a very significant role. The millennial and gen Z population is large (40% of US population, or approximately 131 million people (Source: Statista)) and is in its prime spending age. Global coffeehouse franchises are challenging the dominance of traditional fast food and convenience stores. These companies need a collaborator to help them develop new products and keep up with consumer demand for cold brew and related liquid coffee extracts. So, this is where we bring in WEST. WEST is able to provide for all the needs of conventional quick-service eateries and convenience stores. Numbers wise, over the next five years, cold and ready-to-drink coffee is predicted to grow at the fastest rate (8% CAGR) of all non-alcoholic beverages consumed in the United States (Source: WEST S-1). WEST Investor presentation Jun 2022 Scaled player WEST has great market leadership, a comprehensive solution offering, and a strategic partnership approach that makes them a unique brand-behind-the-brand. Because of these characteristics, they are able to serve customers across a wide range of product types and distribution channels with innovative and enticing beverages. Operators who are interested in new and innovative products can benefit greatly from working with them because of the company's emphasis on a collaborative product development process that begins with consumer insights tailored to the distribution channels and consumer profiles. All in all, WEST is a global full-menu beverage solutions provider thanks to their massive international footprint, industry-leading sustainable sourcing, and seamless vertical integration of their supply chain. Another thing about WEST is that their skilled team has over 380 years of collective experience of success working in blend matching and taste profiling. A unique partnership approach that enhances their ability to drive beverage program profitability is definitely a plus. In addition to being able to match any coffee and guarantee consistency in every cup, as well as quickly and reliably ship a bespoke product that is ethically sourced to anywhere in the world, they stand out from the competition. Blue chip customer base with broad geographical reach supports growth WEST has a whole lot of value propositions. However, one of their key value propositions is its scale and global reach, as it serves blue-chip customers with a global presence. WEST's A-list clients include international chains of eateries, motels, supermarkets, and department stores. Approximately 88% of their customer stores are located in the United States, while only 1% are located in other international markets. Because of this, they have a great chance to boost sales to existing customers by setting up shop where those customers are already at internationally. They supplied customers in the United States, Canada, Virgin Islands, and Australia, amongst others, in the beverage solutions segment. Expansion will be done over time to places like China, Japan, the United Kingdom, the European Union, the Middle East, and North Africa. Alongside satisfying the current customers, they are also looking to expand the blue-chip customer base to further penetrate their existing channels. Since 2020, 25 new countries have been added through the new pipeline. There are more than 100 new targets in the blue-chip customer pipeline (Source: WEST S-1). WEST Investor presentation Jun 2022 Proprietary technology that enables traceability is a strong value proposition to clients with focus on ESG factors WEST's ability to provide a paper trail is an invaluable asset. Increased demand for ethically produced and responsibly sourced food and beverages can be attributed to consumers' growing awareness of sustainable sourcing options. For worldwide tracking and connectivity, WEST utilizes a number of different technologies. The goal is that this technology can make opaque and disjointed supply chains more open and interconnected. Valuation I believe MTY is worth USD17.16 representing 75% upside from the date of writing. This value is derived from my model based on the following assumptions: Revenue growth to follow management guidance until FY24, supported by continuous organic growth and market share capture. Adj. EBITDA margins to follow management guidance, expanding from 8% in FY22 to 10% in FY24 Valuation is where I differ from the market and believe that WEST deserves to trade at a higher multiple than what it deserves today, especially when we look at where other value-added coffee and tea players are trading today. On average, the other players are trading at a median forward adj. EBITDA multiple of 14 to 15x, and I would argue that WEST deserves to trade at a similar range. That said, the peer group includes brands like Nestle and Starbucks, who have a better brand and scale than WEST, hence I applied a slight discount in my assumption.

Seeking Alpha • Oct 07

Westrock: A New Coffee Stock Worth Paying Attention To

Summary Westrock Coffee recently went public via a SPAC. Unlike many SPACs, this company already generates a lot of revenue and has produced reasonable financial results. The company's fully integrated supply chain for coffee makes it a unique business model. I see little rush to buy the stock today, but the company's approach makes sense and should pay off in time. Westrock Coffee (WEST) is a company focused on providing coffee, tea, and extracts to large customers such as restaurant chains, retail, gas stations, and foodservice. The company has two primary lines of business today. The first is producing coffee and tea for its customers. The firm is fully integrated; it buys coffee direct from farmers in places such as Rwanda and then roasts and packages the beans itself. The company also has a flavorings, extracts, and ingredients business which provides concentrates to go into things such as cold coffee drinks, milkshakes, ice cream, sauces, and so on. The company recently came public via a merger with Riverview Acquisition Corp. SPACs have been a dreadfully performing group of stocks in 2022. It'd be easy to dismiss Westrock out of hand due to being a SPAC. However, I'd argue that Westrock is one of the rare few SPACs that deserves a second look. Things I Like About The Business Westrock is run by CEO Scott Ford. Ford was previously CEO of telecom company Alltel from 2002 on until 2007 when it was sold to private equity and then flipped to Verizon (VZ) for $28 billion. During his tenure, Alltel was known for making smart acquisitions at reasonable prices and turning a seemingly disparate collection of holdings into a greater whole that Verizon was willing to pay up for. Ford launched Westrock with operations buying coffee directly from farmers in Rwanda in 2009. Over the years, it has expanded both organically and through M&A, going into roasting, packaging, coffee sourcing in other countries, and so on. Recent key additions have been to launch manufacturing in Malaysia and the opening of a new U.S. roasting to ready-to-drink packaging facility. I find the business model intriguing because it solves a key concern for its customers. Large restaurants franchises, convenience store chains and the like don't want to waste a lot of time and energy shopping for their coffee, tea, and ready-to-drink products. A service provider that can deliver a good product at a reasonable price across the whole category is going to make life much easier. As Westrock controls the entire supply chain up to the end customer, it makes for an easy experience for its clients: Westrock's integration (Corporate presentation) This is so much the case that some of Westrock's U.S. customers have been clamoring for the company to begin selling its products internationally as well; this led to the launch of the Malaysia plant, and the company has plans for other international markets as well. According to Ford, the company's total addressable market is well into the tens of billions of dollars and the company is only at $960 million of annual revenues today. This gives it plenty of room to grow, both organically and via M&A, in coming years. The international expansion plans seem particularly compelling. Also, younger consumers' preference for cold coffee drinks is a plus, as Westrock is a leader in producing the extracts and flavors that make these cold beverages tasty. Over time, Westrock plans to go into more packaging formats which will extend its reach in this area as well. My Concern: Low Gross Profit Margins The one thing that is really holding me back from getting too excited is due to the relatively low gross profit that it earns on its sales: Income statement (WEST 10-Q) As you can see, the company only earned $39 million of gross profit on $223 million of sales in Q2 of this year, which works out to a 17% gross margin. This was down from last year, when the company's gross margin was closer to 20%. Typically, I think of packaged foods companies as earning gross margins in the high 20s to mid-30s range rather than struggling to break 20%. As you can see, with Westrock's current gross margin, the company barely covers its SG&A costs, and it lost money outright after factoring in other expenses such as interest. Ultimately, I expect the company's margin should rise over time as it gains more scale and continues to add additional markets and manufacturing capacity. This doesn't seem like a business that should have to be stuck with perpetually low margins. However, it is something to watch. Perhaps there is something with the way the company sources coffee directly that causes it to earn less than we might anticipate. It's also hard to pencil out how much of the current profitability issue might be due to inflation and other temporary macroeconomic factors that we're seeing at the moment. There is no publicly traded company that is equivalent to Westrock. You can value pieces of the business based on peers that engage in that one segment, but the idea of doing everything in house from import/export through roasting and packaging and then selling to end customers is a distinct business model. As such, we're somewhat flying blind here in terms of guessing where the company's long-term unit economics will settle out. I'm inclined to give the company the benefit of the doubt. However, it'd be much easier to make a firm investment decision after seeing another two or three years of operating results. WEST Stock Verdict "We're a very normal business that happens to be in a transition state." - Westrock CEO Scott Ford, from this excellent interview.

Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

Historical stock prices
Current Share Price	US$7.06
52 Week High	US$10.19
52 Week Low	US$3.59
Beta	0.90
1 Month Change	-5.99%
3 Month Change	60.45%
1 Year Change	10.14%
3 Year Change	-34.29%
5 Year Change	n/a
Change since IPO	-27.14%

	WEST	US Food	US Market
7D	-24.8%	1.0%	1.6%
1Y	10.1%	-6.9%	18.6%

WEST volatility
WEST Average Weekly Movement	14.9%
Food Industry Average Movement	5.5%
Market Average Movement	7.3%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

WEST fundamental statistics
Market cap	US$688.76m
Earnings (TTM)	-US$71.41m
Revenue (TTM)	US$1.28b

WEST income statement (TTM)
Revenue	US$1.28b
Cost of Revenue	US$1.12b
Gross Profit	US$167.46m
Other Expenses	US$238.87m
Earnings	-US$71.41m

Earnings per share (EPS)	-0.73
Gross Margin	13.04%
Net Profit Margin	-5.56%
Debt/Equity Ratio	243.7%

Data	Last Updated (UTC time)
Company Analysis	2026/07/04 03:34
End of Day Share Price	2026/07/02 00:00
Earnings	2026/03/31
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Todd Brooks	Benchmark Company
Eric Des Lauriers	Craig-Hallum Capital Group LLC
Benjamin Bienvenu	Stephens, Inc.

Westrock Coffee (WEST) Stock Overview

Rewards

Risk Analysis

Analyst Price Targets

Expanded Production And Vertical Integration Will Create Future Opportunities

Conway Capacity Ramp And High Value Formats Will Drive Stronger Long Term Prospects

Conway Capacity Challenges And Coffee Price Pressures Will Eventually Support Modest Long-Term Upside

Top Analyst Narratives

Expanded Production And Vertical Integration Will Create Future Opportunities

Conway Capacity Ramp And High Value Formats Will Drive Stronger Long Term Prospects

Conway Capacity Challenges And Coffee Price Pressures Will Eventually Support Modest Long-Term Upside

Westrock Coffee Company Competitors

Mission Produce

John B. Sanfilippo & Son

Simply Good Foods

Utz Brands

Price History & Performance

Recent News & Updates

Westrock Coffee: It's Not Too Late To Invest

WEST: Stable Assumptions And P/E Outlook Will Support Balanced Upside Potential

WEST: Higher Future P/E Expectations Will Support Measured Upside Potential

WEST: Lower Discount Rate And Margin Outlook Will Support Measured Upside Potential

Westrock Coffee Company (NASDAQ:WEST) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

WEST: Lower Discount Rate And Higher Margin Assumptions Will Support Upside

Recent updates

Westrock Coffee: It's Not Too Late To Invest

WEST: Stable Assumptions And P/E Outlook Will Support Balanced Upside Potential

WEST: Higher Future P/E Expectations Will Support Measured Upside Potential

WEST: Lower Discount Rate And Margin Outlook Will Support Measured Upside Potential

Westrock Coffee Company (NASDAQ:WEST) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

WEST: Lower Discount Rate And Higher Margin Assumptions Will Support Upside

Westrock Coffee Company, Annual General Meeting, Jun 05, 2026

Westrock Coffee Company to Report Q1, 2026 Results on May 07, 2026

WEST: Lower Discount Rate And Higher Future P/E Will Support Upside

WEST: Lower Growth Assumptions Will Support Upside As Profitability Expectations Improve

WEST: Adjusted Assumptions Will Support Upside As Fair Value Stays Intact

WEST: Refined Assumptions Will Support Upside As Fair Value Remains Steady

Westrock Coffee Company to Report Q4, 2025 Results on Mar 10, 2026

WEST: Modest Assumption Tweaks Will Support Upside As Fair Value Holds

Westrock Coffee Company (NASDAQ:WEST) Soars 27% But It's A Story Of Risk Vs Reward

WEST: Convertible Notes Offering Will Support Upside As Fair Value Stays Intact

WEST: Convertible Notes Offering Will Support Upside As Profitability Assumptions Improve

WEST: Convertible Notes Will Support Future Upside Amid Stable Long-Term Outlook

WEST: Future Returns Will Reflect Convertible Notes And Stable Business Outlook

WEST: Future Performance Will Reflect Strong Convertible Note Financing

Earnings Release: Here's Why Analysts Cut Their Westrock Coffee Company (NASDAQ:WEST) Price Target To US$10.20

Westrock Coffee Company to Report Q3, 2025 Results on Nov 06, 2025

It's Down 27% But Westrock Coffee Company (NASDAQ:WEST) Could Be Riskier Than It Looks

Westrock Coffee Company to Report Q2, 2025 Results on Aug 07, 2025

Westrock Coffee Company(NasdaqGM:WEST) dropped from Russell 2000 Defensive Index

Manufacturing Capacity And Sustainable Supply Chain Will Transform Beverage Markets

Westrock Coffee Company, Annual General Meeting, Jun 06, 2025

Westrock Coffee Company to Report Q1, 2025 Results on May 08, 2025

Westrock Coffee Company Offers Potential, But It's Too Early For An Upgrade

Westrock Coffee Company to Report Q4, 2024 Results on Mar 11, 2025

Westrock Coffee: Not Enough Progress And Uncertainty Ahead

US$11.40: That's What Analysts Think Westrock Coffee Company (NASDAQ:WEST) Is Worth After Its Latest Results

Westrock Coffee Company Announces Appointment of Ken Parent to Board of Directors

Westrock Coffee Company to Report Q3, 2024 Results on Nov 07, 2024

Westrock Coffee Company: A Speculative Upgrade Is Appropriate

We Think Westrock Coffee (NASDAQ:WEST) Has A Fair Chunk Of Debt

Westrock Coffee Company to Report Q2, 2024 Results on Aug 08, 2024

Calculating The Fair Value Of Westrock Coffee Company (NASDAQ:WEST)

Forecast to breakeven in 2025

First quarter 2024 earnings released: US$0.27 loss per share (vs US$0.063 loss in 1Q 2023)

Westrock Coffee Company to Report Q1, 2024 Results on May 09, 2024

Westrock Coffee Company, Annual General Meeting, Jun 06, 2024

Full year 2023 earnings released: US$0.43 loss per share (vs US$1.60 loss in FY 2022)

Forecast breakeven date pushed back to 2025

Westrock Coffee Company to Report Fiscal Year 2023 Results on Mar 12, 2024

Forecast breakeven date moved forward to 2024

A Piece Of The Puzzle Missing From Westrock Coffee Company's (NASDAQ:WEST) 30% Share Price Climb

Co-Founder & Chairman of the Board recently bought US$187k worth of stock

Co-Founder & Chairman of the Board recently bought US$424k worth of stock

Price target decreased by 18% to US$11.75

Westrock Coffee Company to Report Q3, 2023 Results on Nov 09, 2023

Co-Founder & Chairman of the Board recently bought US$202k worth of stock

Co-Founder & Chairman of the Board recently bought US$114k worth of stock

New minor risk - Profitability

Forecast breakeven date pushed back to 2024