NasdaqGS:BREW

Stock Analysis Report

Executive Summary

Craft Brew Alliance, Inc. brews and sells craft beers and ciders in the United States and internationally.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Craft Brew Alliance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

BREW

-0.2%

US Beverage

1.3%

US Market


1 Year Return

-50.6%

BREW

17.3%

US Beverage

5.9%

US Market

Return vs Industry: BREW underperformed the US Beverage industry which returned 17.3% over the past year.

Return vs Market: BREW underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

BREWIndustryMarket
7 Day3.8%-0.2%1.3%
30 Day-7.0%-1.2%-1.9%
90 Day-45.4%1.1%-1.8%
1 Year-50.6%-50.6%20.4%17.3%8.3%5.9%
3 Year-54.0%-54.0%33.2%22.9%45.6%36.2%
5 Year-49.6%-49.6%55.4%35.7%66.1%47.9%

Price Volatility Vs. Market

How volatile is Craft Brew Alliance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Craft Brew Alliance undervalued compared to its fair value and its price relative to the market?

38.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BREW ($8.21) is trading below our estimate of fair value ($13.74)

Significantly Undervalued: BREW is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BREW is good value based on its PB Ratio (1.2x) compared to the US Beverage industry average (5.1x).


Next Steps

Future Growth

How is Craft Brew Alliance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

106.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BREW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BREW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BREW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BREW's revenue (7.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BREW's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BREW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Craft Brew Alliance performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BREW is unprofitable, but has reduced losses over the past 5 years at a rate of 11% per year.

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

Earnings vs Industry: BREW is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (-1.9%).


Return on Equity

High ROE: BREW has a negative Return on Equity (-3.94%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BREW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BREW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Craft Brew Alliance's financial position?


Financial Position Analysis

Short Term Liabilities: BREW's short term assets ($55.4M) exceeds its short term liabilities ($42.0M)

Long Term Liabilities: BREW's short term assets (55.4M) do not cover its long term liabilities (83.4M)


Debt to Equity History and Analysis

Debt Level: BREW's debt to equity ratio (39.3%) is considered satisfactory

Reducing Debt: BREW's debt to equity ratio has increased from 11.1% to 39.3% over the past 5 years.

Debt Coverage: BREW's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: Insufficient data to determine if BREW's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: BREW has a high level of physical assets or inventory.

Debt Coverage by Assets: BREW's debt is covered by short term assets (assets are 1.062320x debt).


Next Steps

Dividend

What is Craft Brew Alliance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Craft Brew Alliance's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Andy Thomas (51yo)

5.8yrs

Tenure

US$1,249,277

Compensation

Mr. Andrew J. Thomas, also known as Andy, has been the Chief Executive Officer at Craft Brewers Alliance, Inc. since January 1, 2014 and served as its President of Commercial Operations since June 1, 2011. ...


CEO Compensation Analysis

Compensation vs. Market: Andy's total compensation ($USD1.25M) is about average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

3.7yrs

Average Tenure

51yo

Average Age

Experienced Management: BREW's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BREW's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$39,88122 Mar 19
Nickolas Mills
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,610
Max PriceUS$15.28
BuyUS$8,73312 Dec 18
Edwin Smith
EntityIndividual
Role
Chief Accounting Officer
Corporate Controller & Principal Accounting Officer
Shares558
Max PriceUS$15.65

Ownership Breakdown


Management Team

  • Kurt Widmer (67yo)

    • Tenure: 0yrs
    • Compensation: US$305.00k
  • Andy Thomas (51yo)

    Chief Executive Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.25m
  • Ken Kunze (60yo)

    Chief Marketing Officer & Vice President

    • Tenure: 5.9yrs
    • Compensation: US$555.33k
  • Rob Widmer

    • Tenure: 0yrs
  • Christine Perich (50yo)

    Chief Financial & Strategy Officer

    • Tenure: 0.5yrs
  • Jenny McLean

    Director of Communications

    • Tenure: 0yrs
  • Derek Hahm (49yo)

    Vice President of Sales & Brewpubs

    • Tenure: 2.9yrs
    • Compensation: US$541.85k
  • J. Mennen (54yo)

    COO & VP

    • Tenure: 4.4yrs
    • Compensation: US$557.67k
  • Edwin Smith (43yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 2.6yrs
    • Compensation: US$209.52k
  • Shannon Grosse

    Senior Director of Financial Planning & Analysis

    • Tenure: 0yrs

Board Members

  • Paul Davis (62yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$104.01k
  • Tim Boyle (69yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$105.01k
  • Dave Lord (70yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$147.01k
  • Kevin Kelly (69yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$112.01k
  • Marc Cramer (61yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$110.01k
  • Nick Mills (42yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$92.01k
  • Jacqueline Woodward (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$97.01k
  • Matthew Gilbertson (43yo)

    Director

    • Tenure: 0.7yrs

Company Information

Craft Brew Alliance, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Craft Brew Alliance, Inc.
  • Ticker: BREW
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$164.481m
  • Shares outstanding: 19.47m
  • Website: https://www.craftbrew.com

Number of Employees


Location

  • Craft Brew Alliance, Inc.
  • 929 North Russell Street
  • Portland
  • Oregon
  • 97227
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BREWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1995
RHBDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995

Biography

Craft Brew Alliance, Inc. brews and sells craft beers and ciders in the United States and internationally. It operates through two segments, Beer Related Operations and Brewpubs Operations. It offers beers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:10
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.