BOSTON BEER COMPANY INC-A (SAM) Stock Fundamental Analysis
NYSE:SAM - New York Stock Exchange, Inc. - US1005571070 - Common Stock - Currency: USD
SAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. SAM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SAM was profitable.
SAM had a positive operating cash flow in the past year.
Each year in the past 5 years SAM has been profitable.
In the past 5 years SAM always reported a positive cash flow from operatings.
1.2 Ratios
SAM has a Return On Assets of 5.77%. This is in the better half of the industry: SAM outperforms 60.61% of its industry peers.
SAM has a Return On Equity (7.97%) which is comparable to the rest of the industry.
The Return On Invested Capital of SAM (11.71%) is better than 66.67% of its industry peers.
SAM had an Average Return On Invested Capital over the past 3 years of 8.12%. This is below the industry average of 11.23%.
The last Return On Invested Capital (11.71%) for SAM is above the 3 year average (8.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 7.97% | ||
| ROIC | 11.71% |
ROA(3y)4.95%
ROA(5y)5.95%
ROE(3y)6.63%
ROE(5y)8.26%
ROIC(3y)8.12%
ROIC(5y)8.73%
1.3 Margins
SAM has a Profit Margin of 3.50%. This is in the lower half of the industry: SAM underperforms 60.61% of its industry peers.
SAM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.32%, SAM is doing worse than 69.70% of the companies in the same industry.
SAM's Operating Margin has declined in the last couple of years.
SAM has a Gross Margin (45.41%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.32% | ||
| PM (TTM) | 3.5% | ||
| GM | 45.41% |
OM growth 3Y39.49%
OM growth 5Y-8.36%
PM growth 3Y61.25%
PM growth 5Y-19.42%
GM growth 3Y4.62%
GM growth 5Y-2.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAM is still creating some value.
SAM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SAM has been reduced compared to 5 years ago.
SAM has a worse debt/assets ratio than last year.
2.2 Solvency
SAM has an Altman-Z score of 6.26. This indicates that SAM is financially healthy and has little risk of bankruptcy at the moment.
SAM's Altman-Z score of 6.26 is amongst the best of the industry. SAM outperforms 84.85% of its industry peers.
There is no outstanding debt for SAM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.26 |
ROIC/WACC1.29
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.72 indicates that SAM should not have too much problems paying its short term obligations.
SAM has a better Current ratio (1.72) than 63.64% of its industry peers.
A Quick Ratio of 1.12 indicates that SAM should not have too much problems paying its short term obligations.
SAM has a better Quick ratio (1.12) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.23% over the past year.
SAM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
Looking at the last year, SAM shows a small growth in Revenue. The Revenue has grown by 0.79% in the last year.
SAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.00% yearly.
EPS 1Y (TTM)28.23%
EPS 3Y32.41%
EPS 5Y-0.56%
EPS Q2Q%107.69%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.73%
Revenue growth 5Y10%
Sales Q2Q%6.53%
3.2 Future
Based on estimates for the next years, SAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.72% on average per year.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y2.38%
EPS Next 2Y10.39%
EPS Next 3Y12.57%
EPS Next 5Y14.72%
Revenue Next Year2.28%
Revenue Next 2Y2.37%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.81 indicates a rather expensive valuation of SAM.
SAM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SAM to the average of the S&P500 Index (27.50), we can say SAM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.34, SAM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SAM.
SAM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAM is valued cheaper than 84.85% of the companies in the same industry.
87.88% of the companies in the same industry are more expensive than SAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAM does not grow enough to justify the current Price/Earnings ratio.
SAM's earnings are expected to grow with 12.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.91
PEG (5Y)N/A
EPS Next 2Y10.39%
EPS Next 3Y12.57%
5. Dividend
5.1 Amount
No dividends for SAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
192.24
-2.36 (-1.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners84.22%
Inst Owner Change0%
Ins Owners9.5%
Ins Owner Change16.48%
Market Cap2.14B
Analysts66
Price Target255.37 (32.84%)
Short Float %11.24%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)132.38%
Min EPS beat(2)-27.29%
Max EPS beat(2)292.05%
EPS beat(4)2
Avg EPS beat(4)64.45%
Min EPS beat(4)-27.29%
Max EPS beat(4)292.05%
EPS beat(8)4
Avg EPS beat(8)1477.66%
EPS beat(12)4
Avg EPS beat(12)951.74%
EPS beat(16)4
Avg EPS beat(16)694.22%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)2.35%
Max Revenue beat(2)3.45%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)3.45%
Revenue beat(8)5
Avg Revenue beat(8)-0.16%
Revenue beat(12)8
Avg Revenue beat(12)1.28%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)-5.21%
PT rev (3m)-6.7%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-14.17%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-6.22%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 17.34 | ||
| P/S | 1.05 | ||
| P/FCF | 11.57 | ||
| P/OCF | 8.38 | ||
| P/B | 2.39 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)10.22
EY5.32%
EPS(NY)11.09
Fwd EY5.77%
FCF(TTM)16.61
FCFY8.64%
OCF(TTM)22.93
OCFY11.93%
SpS183.03
BVpS80.45
TBVpS68.92
PEG (NY)7.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 7.97% | ||
| ROCE | 17% | ||
| ROIC | 11.71% | ||
| ROICexc | 13.82% | ||
| ROICexgc | 16.29% | ||
| OM | 8.32% | ||
| PM (TTM) | 3.5% | ||
| GM | 45.41% | ||
| FCFM | 9.08% |
ROA(3y)4.95%
ROA(5y)5.95%
ROE(3y)6.63%
ROE(5y)8.26%
ROIC(3y)8.12%
ROIC(5y)8.73%
ROICexc(3y)10.19%
ROICexc(5y)10.53%
ROICexgc(3y)12.36%
ROICexgc(5y)13.08%
ROCE(3y)11.79%
ROCE(5y)12.67%
ROICexcg growth 3Y51.57%
ROICexcg growth 5Y-0.97%
ROICexc growth 3Y53.78%
ROICexc growth 5Y1.55%
OM growth 3Y39.49%
OM growth 5Y-8.36%
PM growth 3Y61.25%
PM growth 5Y-19.42%
GM growth 3Y4.62%
GM growth 5Y-2.01%
F-Score7
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.44% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.13% | ||
| Profit Quality | 259.06% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 6.26 |
F-Score7
WACC9.07%
ROIC/WACC1.29
Cap/Depr(3y)88.4%
Cap/Depr(5y)136.69%
Cap/Sales(3y)3.77%
Cap/Sales(5y)5.31%
Profit Quality(3y)238.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.23%
EPS 3Y32.41%
EPS 5Y-0.56%
EPS Q2Q%107.69%
EPS Next Y2.38%
EPS Next 2Y10.39%
EPS Next 3Y12.57%
EPS Next 5Y14.72%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.73%
Revenue growth 5Y10%
Sales Q2Q%6.53%
Revenue Next Year2.28%
Revenue Next 2Y2.37%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
EBIT growth 1Y12.55%
EBIT growth 3Y38.47%
EBIT growth 5Y0.81%
EBIT Next Year64.71%
EBIT Next 3Y26.1%
EBIT Next 5Y23.19%
FCF growth 1Y33.28%
FCF growth 3YN/A
FCF growth 5Y15.22%
OCF growth 1Y14.62%
OCF growth 3Y64.13%
OCF growth 5Y6.91%