NasdaqCM:JVA

Stock Analysis Report

Executive Summary

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Australia, Canada, England, and China.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Coffee Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JVA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

JVA

-1.8%

US Food

-1.0%

US Market


1 Year Return

-41.6%

JVA

12.4%

US Food

18.0%

US Market

Return vs Industry: JVA underperformed the US Food industry which returned 12.4% over the past year.

Return vs Market: JVA underperformed the US Market which returned 18% over the past year.


Shareholder returns

JVAIndustryMarket
7 Day4.1%-1.8%-1.0%
30 Day-6.1%-2.7%0.6%
90 Day-6.1%2.5%7.9%
1 Year-41.6%-41.6%15.3%12.4%20.4%18.0%
3 Year-21.6%-21.6%-3.0%-10.8%48.0%38.5%
5 Year-23.5%-23.5%39.9%23.5%72.2%53.3%

Price Volatility Vs. Market

How volatile is Coffee Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coffee Holding undervalued compared to its fair value and its price relative to the market?

0.85x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: JVA ($3.85) is trading above our estimate of fair value ($2.88)

Significantly Below Fair Value: JVA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JVA is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: JVA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JVA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JVA is good value based on its PB Ratio (0.8x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Coffee Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

111.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JVA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: JVA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: JVA's is expected to become profitable in the next 3 years.

Revenue vs Market: JVA's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: JVA's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JVA's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Coffee Holding performed over the past 5 years?

-24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JVA is currently unprofitable.

Growing Profit Margin: JVA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JVA is unprofitable, and losses have increased over the past 5 years at a rate of -24.5% per year.

Accelerating Growth: Unable to compare JVA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JVA is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-5.6%).


Return on Equity

High ROE: JVA has a negative Return on Equity (0.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Coffee Holding's financial position?


Financial Position Analysis

Short Term Liabilities: JVA's short term assets ($31.7M) exceed its short term liabilities ($11.5M).

Long Term Liabilities: JVA's short term assets ($31.7M) exceed its long term liabilities ($1.4M).


Debt to Equity History and Analysis

Debt Level: JVA's debt to equity ratio (26.8%) is considered satisfactory.

Reducing Debt: JVA's debt to equity ratio has increased from 9.7% to 26.8% over the past 5 years.


Balance Sheet

Inventory Level: JVA has a high level of physical assets or inventory.

Debt Coverage by Assets: JVA's debt is covered by short term assets (assets are 4.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: JVA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: JVA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Coffee Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate JVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JVA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JVA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JVA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JVA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

22.1yrs

Average board tenure


CEO

Andy Gordon (57yo)

23.1yrs

Tenure

US$387,289

Compensation

Mr. Andrew Gordon, also known as Andy, has been the Chief Executive Officer, President and Treasurer of Coffee Holding Company, Inc., 1997 and its Chief Financial Officer since November 2004. Mr. Gordon is ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD387.29K) is about average for companies of similar size in the US market ($USD522.55K).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Andrew Gordon
President23.1yrsUS$387.29k4.99% $1.1m
David Gordon
Executive VP of Operations25.1yrsUS$388.88k6.86% $1.5m
Barry Knepper
Independent Director15.1yrsUS$2.40k0.018% $3.9k
Gerard DeCapua
Independent Director23.1yrsUS$2.40k0.0018% $386.0
Daniel Dwyer
Director22.1yrsUS$800.000.11% $22.7k
John Rotelli
Independent Director14.5yrsUS$1.20k0.033% $7.1k
George Thomas
Independent Director4yrsUS$3.90k0.047% $10.0k

22.1yrs

Average Tenure

60yo

Average Age

Experienced Board: JVA's board of directors are seasoned and experienced ( 22.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Coffee Holding Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coffee Holding Co., Inc.
  • Ticker: JVA
  • Exchange: NasdaqCM
  • Founded: 1971
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$21.442m
  • Shares outstanding: 5.57m
  • Website: https://www.coffeeholding.com

Number of Employees


Location

  • Coffee Holding Co., Inc.
  • 3475 Victory Boulevard
  • Staten Island
  • New York
  • 10314
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JVANasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 2005
E6UDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2005

Biography

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Australia, Canada, England, and China. The company offers wholesale green coffee products, which include unroasted raw beans of approximately 90 varieties that are sold to large, medium, and small roasters, as well as coffee shop operators. It also roasts, blends, packages, and sells coffee under private labels. As of October 31, 2019, the company supplied private label coffee under approximately 19 labels to wholesalers and retailers in cans, brick packages, and instants of various sizes. In addition, it roasts, blends, and packages company label branded coffee to supermarkets, wholesalers, and individually owned and multi-unit retail customers. Further, the company offers tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:09
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.