NasdaqGS:BREW

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


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

Stable Share Price: BREW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.9%

BREW

12.2%

US Beverage

9.9%

US Market


1 Year Return

6.2%

BREW

-7.9%

US Beverage

-11.9%

US Market

Return vs Industry: BREW exceeded the US Beverage industry which returned -7.8% over the past year.

Return vs Market: BREW exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

BREWIndustryMarket
7 Day15.9%12.2%9.9%
30 Day-6.7%-14.8%-15.0%
90 Day-10.1%-18.2%-21.5%
1 Year6.2%6.2%-5.5%-7.9%-10.0%-11.9%
3 Year11.2%11.2%9.3%0.8%12.3%5.1%
5 Year9.2%9.2%27.6%11.7%32.5%18.1%

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?

14.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BREW ($14.85) is trading below our estimate of fair value ($17.41)

Significantly Below Fair Value: BREW is trading below fair value, but not by a significant amount.


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

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 (2.3x) compared to the US Beverage industry average (2.3x).


Next Steps

Future Growth

How is Craft Brew Alliance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

121.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BREW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BREW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BREW's is expected to become profitable in the next 3 years.

Revenue vs Market: BREW's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BREW's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BREW is currently unprofitable.

Growing Profit Margin: BREW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BREW is unprofitable, and losses have increased over the past 5 years at a rate of -16.9% 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 (9.2%).


Return on Equity

High ROE: BREW has a negative Return on Equity (-10.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is Craft Brew Alliance's financial position?


Financial Position Analysis

Short Term Liabilities: BREW's short term assets ($41.1M) exceed its short term liabilities ($39.4M).

Long Term Liabilities: BREW's short term assets ($41.1M) do not cover its long term liabilities ($84.7M).


Debt to Equity History and Analysis

Debt Level: BREW's debt to equity ratio (26.7%) is considered satisfactory.

Reducing Debt: BREW's debt to equity ratio has increased from 13.4% to 26.7% over the past 5 years.


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 1.2x debt).


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: BREW has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BREW has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

4.8yrs

Average management tenure


CEO

Andy Thomas (51yo)

6.17s

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 ($USD1.25M) is about average for companies of similar size in the US market ($USD1.45M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Thomas
Chief Executive Officer6.17yrsUS$1.25m0.14% $408.7k
J. Mennen
Chief Operating Officer4.83yrsUS$557.67k0.067% $194.8k
Edwin Smith
Corporate Controller & Principal Accounting Officer3yrsUS$209.52k0.0069% $19.9k
Kenneth Kunze
Chief Marketing Officer6.33yrsUS$555.33k0.025% $72.8k
Derek Hahm
Chief Commercial Officerno dataUS$541.85k0.022% $63.2k
Kurt Widmer
no dataUS$305.00kno data
Robert Widmer
no datano datano data
Christine Perich
Former Chief Financial & Strategy Officer1yrno data0.016% $45.7k
Marcus Reed
General Counsel & Secretaryno datano datano data
Jenny McLean
Director of Communicationsno datano datano data

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: BREW's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Davis
Independent Director4yrsUS$104.01k0.069% $199.9k
Timothy Boyle
Independent Director11.67yrsUS$105.01k2.5% $7.2m
David Lord
Independent Chairman of the Board4.17yrsUS$147.01k0.22% $625.2k
Kevin Kelly
Independent Director11.67yrsUS$112.01k0.22% $648.1k
Marc Cramer
Independent Director9.25yrsUS$110.01k0.15% $445.4k
Nickolas Mills
Director3.17yrsUS$92.01k0.030% $88.3k
Jacqueline Woodward
Independent Director2.83yrsUS$97.01k0.030% $85.8k
Matthew Gilbertson
Director1yrno data0.017% $48.2k

4.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BREW's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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$289.651m
  • Shares outstanding: 19.51m
  • Website: https://www.craftbrew.com

Number of Employees


Location

  • Craft Brew Alliance, Inc.
  • 929 North Russell Street
  • Portland
  • Oregon
  • 97227-1733
  • 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, ciders, and seltzers in the United States and internationally. The company operates in two segments, Beer Related Operations and Brewpubs Operations. It offers beers under the Kona, Omission, Appalachian Mountain, Cisco, Redhook, Widmer Brothers, and Wynwood brands; and ciders under the Square Mile brand name. The company sells its beers directly to consumers in draft, cans, and bottles at restaurants, bars, and liquor stores; and in cans and bottles at supermarkets, warehouse clubs, convenience stores, and drug stores, as well as directly to consumers at its brewpubs and breweries. It also operates five brewpubs, which sells apparel and other merchandise. The company was founded in 1981 and is headquartered in Portland, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:40
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.