Coffee Story

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JVA -- USA Stock  

USD 3.23  0.21  6.10%

Coffee Holding Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 838,655. The current year Enterprise Value is expected to grow to about 25.4 M, whereas Average Assets are forecasted to decline to about 42.2 M. As many investors are getting excited about consumer defensive space, it is fair to go over Coffee Holding Co. We will evaluate why recent Coffee Holding price moves suggest a bounce in October. In this post, I will also go over some essential variables affecting Coffee Holding's products, and show how it may impact Coffee Holding outlook for active traders this year.
Published over two weeks ago
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Is Coffee Holding (NASDAQ:JVA) undervalued?
On a scale of 0 to 100, Coffee Holding holds a performance score of 5. The firm shows a Beta (market volatility) of -0.6026, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Coffee's beta means in this case. As returns on the market increase, returns on owning Coffee Holding are expected to decrease at a much lower rate. During the bear market, Coffee Holding is likely to outperform the market. Although it is vital to follow Coffee Holding historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Coffee Holding technical indicators, you can presently evaluate if the expected return of 0.33% will be sustainable into the future. Please makes use of Coffee Holding jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to make a quick decision on whether Coffee Holding price patterns will revert.

How important is Coffee Holding's Liquidity

Coffee Holding financial leverage refers to using borrowed capital as a funding source to finance Coffee Holding Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coffee Holding financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Coffee Holding's total debt and its cash.

How Coffee utilizes its cash?

To perform a cash flow analysis of Coffee Holding, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Coffee Holding is receiving and how much cash it distributes out in a given period. The Coffee Holding cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Coffee Holding Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (2.47 Million)

Purchase by John Rotelli of 750 shares of Coffee Holding

Legal trades by Coffee Holding insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Coffee insider trading alert for perchase of common stock $0.001 par value by John Rotelli, the corporate stakeholder, on 25th of September 2020. This event was filed by Coffee Holding Co Inc with SEC on 2020-09-25. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Coffee Holding Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Coffee Holding has an asset utilization ratio of 220.13 percent. This suggests that the company is making $2.2 for each dollar of assets. An increasing asset utilization means that Coffee Holding Co is more efficient with each dollar of assets it utilizes for everyday operations.
 2017 2018 2019 2020 (projected)
Book Value per Share4.374.545.224.89
Asset Turnover2.272.262.032.47

Will Coffee slip impact its fundamentals?

Coffee Holding current variance builds up over 16.32. Coffee Holding Co shows above-average downside volatility for the selected time horizon. We advise investors to inspect Coffee Holding Co further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Coffee Holding future alpha.

Our Conclusion on Coffee Holding

Whereas some firms in the packaged foods industry are either recovering or due for a correction, Coffee Holding may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Coffee valuation and our trade advice on Coffee Holding is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Coffee Holding.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Coffee Holding Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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