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Looking At Coffee Holding Co., Inc. (NASDAQ:JVA) From All Angles

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Coffee Holding Co., Inc. (NASDAQ:JVA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of JVA, it is a financially-robust company with a great track record and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Coffee Holding here.

Excellent balance sheet with proven track record

In the previous year, JVA has ramped up its bottom line by 70%, with its latest earnings level surpassing its average level over the last five years. Not only did JVA outperformed its past performance, its growth also surpassed the Food industry expansion, which generated a 31% earnings growth. This is an optimistic signal for the future.

NasdaqCM:JVA Future Profit January 18th 19
NasdaqCM:JVA Future Profit January 18th 19

JVA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. JVA appears to have made good use of debt, producing operating cash levels of 0.95x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqCM:JVA Historical Debt January 18th 19
NasdaqCM:JVA Historical Debt January 18th 19

Next Steps:

For Coffee Holding, I’ve put together three important factors you should further research:

  1. Valuation: What is JVA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JVA is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does JVA return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from JVA as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JVA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.