Swiss Water Decaffeinated Coffee (TSX:SWP) GF Value Rank : 3 (As of May. 12, 2024)

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What is Swiss Water Decaffeinated Coffee GF Value Rank?

Swiss Water Decaffeinated Coffee has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Swiss Water Decaffeinated Coffee's GF Value Rank

For the Packaged Foods subindustry, Swiss Water Decaffeinated Coffee's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Swiss Water Decaffeinated Coffee's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Swiss Water Decaffeinated Coffee's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Swiss Water Decaffeinated Coffee's GF Value Rank falls into.

Swiss Water Decaffeinated Coffee GF Value Rank Related Terms

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Swiss Water Decaffeinated Coffee (TSX:SWP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Swiss Water Decaffeinated Coffee Inc (TSX:SWP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SWSSF:USA 7RD:Germany

Address

7750 Beedie Way, Delta, BC, CAN, V4G 0A5

Website

https://www.swisswater.com

Swiss Water Decaffeinated Coffee Inc is a specialty coffee company, that offers green coffee decaffeination, and Seaforth Supply Chain Solutions Inc provides green coffee handling and storage services. It is a premium decaffeination of green coffee in Canadian British Columbia. It employs the proprietary Swiss Water Process to decaffeinate green coffee without the use of chemicals, leveraging science-based systems and controls to produce coffee. The company's sales are generated in a single segment of decaffeination of green coffee beans. It also operates in three geographic areas - Canada, the United States, and other international markets, and the majority of revenue comes from the United States.

Executives

Donald John Tringali

Director