TSX:BR

Stock Analysis Report

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Executive Summary

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Big Rock Brewery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BR's weekly volatility has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

-3.7%

BR

2.8%

CA Beverage

1.9%

CA Market


1 Year Return

23.2%

BR

1.8%

CA Beverage

16.2%

CA Market

Return vs Industry: BR exceeded the Canadian Beverage industry which returned 1.8% over the past year.

Return vs Market: BR exceeded the Canadian Market which returned 15.9% over the past year.


Shareholder returns

BRIndustryMarket
7 Day-3.7%2.8%1.9%
30 Day9.5%-10.1%1.7%
90 Day-5.5%1.2%6.9%
1 Year23.2%23.2%3.6%1.8%20.5%16.2%
3 Year0.2%0.2%-13.2%-18.6%24.6%12.8%
5 Year2.4%2.4%4.5%-5.5%56.7%33.1%

Long-Term Price Volatility Vs. Market

How volatile is Big Rock Brewery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Big Rock Brewery undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BR (CA$5.2) is trading below our estimate of fair value (CA$53.81)

Significantly Below Fair Value: BR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BR is unprofitable, so we can't compare its PE Ratio to the XN Beverage industry average.

PE vs Market: BR is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BR is good value based on its PB Ratio (1x) compared to the CA Beverage industry average (2.2x).


Next Steps

Future Growth

How is Big Rock Brewery forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.8%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Big Rock Brewery has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Big Rock Brewery performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BR is currently unprofitable.

Growing Profit Margin: BR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BR is unprofitable, and losses have increased over the past 5 years at a rate of 16.9% per year.

Accelerating Growth: Unable to compare BR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BR is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (11.4%).


Return on Equity

High ROE: BR has a negative Return on Equity (-1.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Big Rock Brewery's financial position?


Financial Position Analysis

Short Term Liabilities: BR's short term assets (CA$10.7M) exceed its short term liabilities (CA$8.1M).

Long Term Liabilities: BR's short term assets (CA$10.7M) do not cover its long term liabilities (CA$11.8M).


Debt to Equity History and Analysis

Debt Level: BR's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: BR's debt to equity ratio has reduced from 9.8% to 8.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.6% per year.


Next Steps

Dividend

What is Big Rock Brewery current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BR is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Wayne Arsenault

3.5yrs

Tenure

CA$666,141

Compensation

Mr. Wayne Arsenault has been Chief Executive Officer and President of Big Rock Brewery Inc. since September 7, 2017. Mr. Arsenault has 20 years' experience in the beer and branded beverage industry. Mr. Ar...


CEO Compensation Analysis

Compensation vs Market: Wayne's total compensation ($USD524.89K) is above average for companies of similar size in the Canadian market ($USD151.87K).

Compensation vs Earnings: Wayne's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Wayne Arsenault
CEO & President3.5yrsCA$666.14k0.52%
CA$ 188.3k
Donald Sewell
Chief Financial Officer2.58yrsCA$343.65k0.19%
CA$ 69.3k
Paul Gautreau
Vice President of Operations & Brewmasterno dataCA$266.02k0.022%
CA$ 7.9k
Paul Howden
Vice President of Sales2.67yrsCA$287.69k0.075%
CA$ 27.4k
Brad Goddard
Director of Business Developmentno dataCA$194.61kno data

2.7yrs

Average Tenure

Experienced Management: BR's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kathleen McNally-Leitch
Independent Vice Chairmanno dataCA$21.44k3.47%
CA$ 1.3m
Robert Peters
Director Emeritus1.5yrsCA$6.50kno data
James H. Riddell
Independent Director14.92yrsCA$20.94k0.067%
CA$ 24.4k
Michael Kohut
Independent Chairman of the Board3.33yrsCA$22.94k0.35%
CA$ 127.4k
Patrick Noone
Independent Director5.83yrsCA$22.44kno data
Stephen Giblin
Independent Director2.83yrsCA$21.94kno data
Alanna McDonald
Independent Director2.83yrsCA$20.44kno data

3.1yrs

Average Tenure

53yo

Average Age

Experienced Board: BR's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Big Rock Brewery Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Big Rock Brewery Inc.
  • Ticker: BR
  • Exchange: TSX
  • Founded: 1985
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$36.304m
  • Shares outstanding: 6.98m
  • Website: https://bigrockbeer.com

Number of Employees


Location

  • Big Rock Brewery Inc.
  • 5555 – 76th Avenue SE
  • Calgary
  • Alberta
  • T2C 4L8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1992
BRBM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1992

Biography

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. The company operates through two segments, Wholesale and Retail. It offers a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:39
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.