When it comes to investing, most people focus on giants like Apple, Microsoft, or Amazon. But what if I told you that there are companies worth thousands of times less — and yet they actually generate real profit?
Today, let’s talk about Coffee Holding Co Inc. (ticker: JVA) — a company that, as of this writing, has a market capitalization of just $25.92 million.
What is market capitalization?
For beginners:
Market Cap = Share Price × Number of Shares Outstanding.
It’s basically the price tag for the whole company. If you wanted to buy all of JVA, you’d need around 26 million dollars.
Why does it matter?
The size of a company’s market cap helps define:
- the scale of the business
- stock liquidity (how easily you can buy or sell it)
- potential risk and volatility
By classification:
- Large Cap: $10 billion and up
- Mid Cap: $2–10 billion
- Small Cap: $300 million – $2 billion
- Micro Cap: $50–300 million
- Nano Cap: below $50 million → this is where JVA falls
What’s unusual about JVA?
Here are some key figures:
- Revenue: $84.65 million
- Net Income: $3.69 million
- P/E: 7.03
- P/S: just 0.31
This means:
The company generates three times more revenue than its total market value.
Even better, it’s profitable. The low P/E suggests the stock might be undervalued.
Why is the market ignoring it?
- The company is extremely small and likely off the radar of major analysts and institutions.
- It has a narrow focus — roasting, packaging, and distributing coffee, mostly in the US and Canada.
- Recent growth has been weak, so investors don’t see major expansion potential.
Is there an opportunity here?
Small, profitable companies like this often attract:
- private investors searching for undervalued stocks
- potential acquirers
- sudden hype if new markets or contracts appear
Bottom line:
JVA is a classic example of a nano-cap company with solid revenue and profit that the market hasn’t priced in yet.
If you’re an investor looking for alpha outside the mainstream, this kind of setup is worth watching closely. But be aware: small market caps bring both opportunity and risk.
P.S. In the next posts, I’ll break down JVA’s debt structure, cash flow, and insider activity. Stay tuned!