BOSTON BEER COMPANY INC-A (SAM) Stock Fundamental Analysis
NYSE:SAM - New York Stock Exchange, Inc. - US1005571070 - Common Stock - Currency: USD
Overall SAM gets a fundamental rating of 5 out of 10. We evaluated SAM against 32 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAM was profitable.
In the past year SAM had a positive cash flow from operations.
Each year in the past 5 years SAM has been profitable.
SAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAM has a better Return On Assets (5.77%) than 62.50% of its industry peers.
The Return On Equity of SAM (7.97%) is comparable to the rest of the industry.
SAM's Return On Invested Capital of 11.71% is fine compared to the rest of the industry. SAM outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAM is below the industry average of 12.21%.
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 (3.50%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SAM has declined.
SAM has a Operating Margin (8.32%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SAM has declined.
SAM's Gross Margin of 45.41% is in line compared to the rest of the industry. SAM outperforms 50.00% of 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
SAM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SAM has less shares outstanding than it did 1 year ago.
SAM has less shares outstanding than it did 5 years ago.
SAM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.34 indicates that SAM is not in any danger for bankruptcy at the moment.
SAM has a better Altman-Z score (7.34) than 84.38% of its industry peers.
SAM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.34 |
ROIC/WACC1.33
WACC8.82%
2.3 Liquidity
SAM has a Current Ratio of 1.72. This is a normal value and indicates that SAM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.72, SAM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that SAM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.12, SAM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 0.79% in the past year.
The Revenue has been growing by 10.00% on average over the past years. This is quite good.
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%12.98%
3.2 Future
The Earnings Per Share is expected to grow by 13.13% on average over the next years. This is quite good.
SAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y9.16%
EPS Next 2Y12.95%
EPS Next 3Y14.31%
EPS Next 5Y13.13%
Revenue Next Year2.52%
Revenue Next 2Y2.66%
Revenue Next 3Y2.78%
Revenue Next 5Y3.88%
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 24.05 indicates a rather expensive valuation of SAM.
Compared to the rest of the industry, the Price/Earnings ratio of SAM is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SAM to the average of the S&P500 Index (28.88), we can say SAM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.17, the valuation of SAM can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAM.
SAM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAM is valued a bit cheaper than 78.13% of the companies in the same industry.
SAM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SAM is cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SAM's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.62
PEG (5Y)N/A
EPS Next 2Y12.95%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
SAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
245.8
-0.72 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners80.13%
Inst Owner Change0.1%
Ins Owners7.12%
Ins Owner Change16.17%
Market Cap2.76B
Analysts55.45
Price Target270.35 (9.99%)
Short Float %8.01%
Short Ratio2.85
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)109.52%
Min EPS beat(2)-27.29%
Max EPS beat(2)246.33%
EPS beat(4)2
Avg EPS beat(4)53.02%
Min EPS beat(4)-27.29%
Max EPS beat(4)246.33%
EPS beat(8)4
Avg EPS beat(8)1471.94%
EPS beat(12)4
Avg EPS beat(12)947.93%
EPS beat(16)4
Avg EPS beat(16)691.37%
Revenue beat(2)2
Avg Revenue beat(2)6.03%
Min Revenue beat(2)2.35%
Max Revenue beat(2)9.72%
Revenue beat(4)2
Avg Revenue beat(4)1.95%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)9.72%
Revenue beat(8)5
Avg Revenue beat(8)0.63%
Revenue beat(12)8
Avg Revenue beat(12)1.8%
Revenue beat(16)9
Avg Revenue beat(16)0.44%
PT rev (1m)-3.53%
PT rev (3m)-14.92%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)-53.51%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-17.05%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 21.17 | ||
| P/S | 1.35 | ||
| P/FCF | 14.87 | ||
| P/OCF | 10.78 | ||
| P/B | 3.07 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 9.92 |
EPS(TTM)10.22
EY4.16%
EPS(NY)11.61
Fwd EY4.72%
FCF(TTM)16.53
FCFY6.72%
OCF(TTM)22.81
OCFY9.28%
SpS182.05
BVpS80.02
TBVpS68.55
PEG (NY)2.62
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 | 7.34 |
F-Score7
WACC8.82%
ROIC/WACC1.33
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 Y9.16%
EPS Next 2Y12.95%
EPS Next 3Y14.31%
EPS Next 5Y13.13%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.73%
Revenue growth 5Y10%
Sales Q2Q%12.98%
Revenue Next Year2.52%
Revenue Next 2Y2.66%
Revenue Next 3Y2.78%
Revenue Next 5Y3.88%
EBIT growth 1Y12.55%
EBIT growth 3Y38.47%
EBIT growth 5Y0.81%
EBIT Next Year71.78%
EBIT Next 3Y25.42%
EBIT Next 5Y26.33%
FCF growth 1Y33.28%
FCF growth 3YN/A
FCF growth 5Y15.22%
OCF growth 1Y14.62%
OCF growth 3Y64.13%
OCF growth 5Y6.91%