NYSE:SAM

Stock Analysis Report

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Executive Summary

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Boston Beer Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

15.5%

SAM

-4.6%

US Beverage

-4.6%

US Market


1 Year Return

183.2%

SAM

-3.5%

US Beverage

11.5%

US Market

Return vs Industry: SAM exceeded the US Beverage industry which returned -3.5% over the past year.

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


Shareholder returns

SAMIndustryMarket
7 Day15.5%-4.6%-4.6%
30 Day20.4%-2.5%-0.9%
90 Day30.8%-1.1%2.2%
1 Year183.2%183.2%-1.0%-3.5%14.0%11.5%
3 Year507.0%507.0%19.2%10.0%34.5%25.6%
5 Year401.9%401.9%40.7%23.2%73.0%53.6%

Price Volatility Vs. Market

How volatile is Boston Beer Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Boston Beer Company undervalued compared to its fair value and its price relative to the market?

74.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAM ($1060.36) is trading above our estimate of fair value ($720.27)

Significantly Below Fair Value: SAM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAM is poor value based on its PE Ratio (74.6x) compared to the US Beverage industry average (33.5x).

PE vs Market: SAM is poor value based on its PE Ratio (74.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SAM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SAM is overvalued based on its PB Ratio (13.9x) compared to the US Beverage industry average (5.1x).


Next Steps

Future Growth

How is Boston Beer Company forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAM's forecast earnings growth (32% per year) is above the savings rate (2.2%).

Earnings vs Market: SAM's earnings (32% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAM's revenue (28.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: SAM's revenue (28.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAM's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has Boston Beer Company performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAM has high quality earnings.

Growing Profit Margin: SAM's current net profit margins (10.9%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: SAM's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: SAM's earnings growth over the past year (47%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: SAM earnings growth over the past year (47%) exceeded the Beverage industry 16.3%.


Return on Equity

High ROE: SAM's Return on Equity (18.8%) is considered low.


Next Steps

Financial Health

How is Boston Beer Company's financial position?


Financial Position Analysis

Short Term Liabilities: SAM's short term assets ($400.0M) exceed its short term liabilities ($231.9M).

Long Term Liabilities: SAM's short term assets ($400.0M) exceed its long term liabilities ($161.9M).


Debt to Equity History and Analysis

Debt Level: SAM is debt free.

Reducing Debt: SAM has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: SAM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SAM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Boston Beer Company current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SAM'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 SAM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SAM'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 SAM'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?

4.7yrs

Average management tenure


CEO

Dave Burwick (58 yo)

2.5yrs

Tenure

US$4,212,131

Compensation

Mr. David A. Burwick, also known as Dave, has been the President and Chief Executive Officer at The Boston Beer Company, Inc. since April 2018.. Mr. Burwick was Chief Executive Officer and President of Pee ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.21M) is below average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Koch
Founder & Chairman of the Boardno dataUS$1.23m22.19%
$ 2.9b
David Burwick
President2.5yrsUS$4.21m0.41%
$ 52.1m
Frank Smalla
CFO & Treasurer4.67yrsUS$1.73m0.097%
$ 12.4m
John Geist
Chief Sales Officer4.75yrsUS$1.74m0.0076%
$ 973.5k
Lesya Lysyj
Chief Marketing Officer1.5yrsUS$3.78mno data
Samuel Calagione
Founderno datano data3.18%
$ 408.8m
Matthew Murphy
Chief Accounting Officer5.17yrsno data0.0066%
$ 842.4k
Tara Heath
VP of Legal & Deputy General Counsel4.25yrsno data0.0093%
$ 1.2m
Carolyn O'Boyle
Chief People Officer0.58yrno datano data
Quincy Troupe
Senior Vice President of Supply Chain4.75yrsUS$1.15m0.016%
$ 2.1m
Michael Andrews
Associate General Counsel & Corporate Secretary4.25yrsno datano data
Thomas Lance
4.75yrsUS$754.55kno data

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: SAM's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Koch
Founder & Chairman of the Boardno dataUS$1.23m22.19%
$ 2.9b
David Burwick
President2.5yrsUS$4.21m0.41%
$ 52.1m
Samuel Calagione
Founderno datano data3.18%
$ 408.8m
Michael Lynton
Independent Directorno datano datano data
Cynthia Fisher
Non-Executive Director8.75yrsUS$144.86k0.65%
$ 83.0m
Jean-Michel Valette
Lead Independent Director7.42yrsUS$173.86k0.16%
$ 21.0m
Michael Spillane
Independent Director4.42yrsUS$166.86k0%
$ 0
Julio Nemeth
Independent Director0.75yrno data0%
$ 0
Meghan Joyce
Independent Director1.58yrsUS$278.91k0%
$ 0

5.9yrs

Average Tenure

59yo

Average Age

Experienced Board: SAM's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAM insiders have only sold shares 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

The Boston Beer Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Boston Beer Company, Inc.
  • Ticker: SAM
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$12.860b
  • Shares outstanding: 12.13m
  • Website: https://www.bostonbeer.com

Number of Employees


Location

  • The Boston Beer Company, Inc.
  • One Design Center Place
  • Suite 850
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAMNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 1995
BBEADB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 1995

Biography

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company’s flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 00:04
End of Day Share Price2020/10/28 00:00
Earnings2020/09/26
Annual Earnings2019/12/28


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.