BOSTON BEER COMPANY INC-A (SAM) Stock Fundamental Analysis
NYSE:SAM - New York Stock Exchange, Inc. - US1005571070 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SAM. SAM was compared to 31 industry peers in the Beverages industry. While SAM has a great health rating, there are worries on its profitability. SAM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SAM had positive earnings in the past year.
SAM had a positive operating cash flow in the past year.
In the past 5 years SAM has always been profitable.
Each year in the past 5 years SAM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.81%, SAM is in line with its industry, outperforming 53.57% of the companies in the same industry.
The Return On Equity of SAM (7.92%) is worse than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.85%, SAM is in line with its industry, outperforming 53.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAM is significantly below the industry average of 13.34%.
The 3 year average ROIC (6.09%) for SAM is below the current ROIC(9.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 7.92% | ||
| ROIC | 9.85% |
ROA(3y)3.71%
ROA(5y)7.06%
ROE(3y)4.95%
ROE(5y)9.92%
ROIC(3y)6.09%
ROIC(5y)9.33%
1.3 Margins
The Profit Margin of SAM (4.01%) is worse than 71.43% of its industry peers.
In the last couple of years the Profit Margin of SAM has declined.
With a Operating Margin value of 7.68%, SAM is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
SAM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 43.95%, SAM is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | 4.01% | ||
| GM | 43.95% |
OM growth 3Y-25.71%
OM growth 5Y-12.33%
PM growth 3Y-29.83%
PM growth 5Y-16.26%
GM growth 3Y-3.61%
GM growth 5Y-3.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAM is creating some value.
Compared to 1 year ago, SAM has less shares outstanding
The number of shares outstanding for SAM has been increased compared to 5 years ago.
The debt/assets ratio for SAM is higher compared to a year ago.
2.2 Solvency
SAM has an Altman-Z score of 6.62. This indicates that SAM is financially healthy and has little risk of bankruptcy at the moment.
SAM has a Altman-Z score of 6.62. This is amongst the best in the industry. SAM outperforms 82.14% 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 | 6.62 |
ROIC/WACC1.09
WACC9.06%
2.3 Liquidity
SAM has a Current Ratio of 2.03. This indicates that SAM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SAM (2.03) is better than 60.71% of its industry peers.
A Quick Ratio of 1.42 indicates that SAM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, SAM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
SAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.43%, which is quite impressive.
SAM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.99% yearly.
SAM shows a decrease in Revenue. In the last year, the revenue decreased by -2.81%.
Measured over the past years, SAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.07% on average per year.
EPS 1Y (TTM)37.43%
EPS 3Y-26.52%
EPS 5Y-3.99%
EPS Q2Q%44.59%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y4.97%
Revenue growth 5Y15.07%
Sales Q2Q%0.64%
3.2 Future
SAM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.88% yearly.
The Revenue is expected to grow by 2.51% on average over the next years.
EPS Next Y45.31%
EPS Next 2Y38.23%
EPS Next 3Y31.92%
EPS Next 5Y25.88%
Revenue Next Year-1.32%
Revenue Next 2Y0.29%
Revenue Next 3Y1.24%
Revenue Next 5Y2.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SAM is valuated rather expensively with a Price/Earnings ratio of 24.47.
SAM's Price/Earnings is on the same level as the industry average.
SAM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 19.19, SAM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SAM.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SAM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 19.19 |
4.2 Price Multiples
SAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAM is cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAM indicates a rather cheap valuation: SAM is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SAM's earnings are expected to grow with 31.92% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y38.23%
EPS Next 3Y31.92%
5. Dividend
5.1 Amount
No dividends for SAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
227.32
+2.17 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners80.13%
Inst Owner Change4.98%
Ins Owners7.12%
Ins Owner Change-0.12%
Market Cap2.61B
Analysts52.73
Price Target301.17 (32.49%)
Short Float %7.01%
Short Ratio4.06
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)-3.48%
Min EPS beat(2)-13.33%
Max EPS beat(2)6.37%
EPS beat(4)2
Avg EPS beat(4)2882.67%
Min EPS beat(4)-480.23%
Max EPS beat(4)12017.9%
EPS beat(8)3
Avg EPS beat(8)1398.56%
EPS beat(12)3
Avg EPS beat(12)918.21%
EPS beat(16)4
Avg EPS beat(16)683.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-4.01%
Max Revenue beat(2)-0.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-5.79%
Max Revenue beat(4)2.09%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)-4.13%
PT rev (3m)-2.11%
EPS NQ rev (1m)-3.92%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-2.7%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 19.19 | ||
| P/S | 1.3 | ||
| P/FCF | 15.2 | ||
| P/OCF | 10.89 | ||
| P/B | 2.57 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)9.29
EY4.09%
EPS(NY)11.85
Fwd EY5.21%
FCF(TTM)14.96
FCFY6.58%
OCF(TTM)20.88
OCFY9.19%
SpS174.59
BVpS88.34
TBVpS77.07
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 7.92% | ||
| ROCE | 13.76% | ||
| ROIC | 9.85% | ||
| ROICexc | 12.77% | ||
| ROICexgc | 15.02% | ||
| OM | 7.68% | ||
| PM (TTM) | 4.01% | ||
| GM | 43.95% | ||
| FCFM | 8.57% |
ROA(3y)3.71%
ROA(5y)7.06%
ROE(3y)4.95%
ROE(5y)9.92%
ROIC(3y)6.09%
ROIC(5y)9.33%
ROICexc(3y)7.34%
ROICexc(5y)10.74%
ROICexgc(3y)9.03%
ROICexgc(5y)13.76%
ROCE(3y)8.5%
ROCE(5y)13.03%
ROICexcg growth 3Y-21.89%
ROICexcg growth 5Y-10.38%
ROICexc growth 3Y-20.67%
ROICexc growth 5Y-13.91%
OM growth 3Y-25.71%
OM growth 5Y-12.33%
PM growth 3Y-29.83%
PM growth 5Y-16.26%
GM growth 3Y-3.61%
GM growth 5Y-3.78%
F-Score8
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.62% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 213.73% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 6.62 |
F-Score8
WACC9.06%
ROIC/WACC1.09
Cap/Depr(3y)129.74%
Cap/Depr(5y)153.57%
Cap/Sales(3y)4.9%
Cap/Sales(5y)6.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.43%
EPS 3Y-26.52%
EPS 5Y-3.99%
EPS Q2Q%44.59%
EPS Next Y45.31%
EPS Next 2Y38.23%
EPS Next 3Y31.92%
EPS Next 5Y25.88%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y4.97%
Revenue growth 5Y15.07%
Sales Q2Q%0.64%
Revenue Next Year-1.32%
Revenue Next 2Y0.29%
Revenue Next 3Y1.24%
Revenue Next 5Y2.51%
EBIT growth 1Y17.47%
EBIT growth 3Y-22.02%
EBIT growth 5Y0.88%
EBIT Next Year88.39%
EBIT Next 3Y33.11%
EBIT Next 5Y27.33%
FCF growth 1Y29.09%
FCF growth 3Y21.03%
FCF growth 5Y13.26%
OCF growth 1Y4.1%
OCF growth 3Y1.52%
OCF growth 5Y10.17%