NYSE:SAM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


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


Market Performance


7 Day Return

4.4%

SAM

0.3%

US Beverage

3.4%

US Market


1 Year Return

42.9%

SAM

15.6%

US Beverage

5.4%

US Market

Return vs Industry: SAM exceeded the US Beverage industry which returned 15.6% over the past year.

Return vs Market: SAM exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

SAMIndustryMarket
7 Day4.4%0.3%3.4%
30 Day-0.4%-1.1%-1.0%
90 Day-0.7%1.3%-0.4%
1 Year42.9%42.9%18.7%15.6%7.7%5.4%
3 Year145.2%145.2%32.3%22.1%46.2%36.8%
5 Year72.9%72.9%58.7%38.7%65.6%47.5%

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?

40.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SAM ($387.73) is trading above our estimate of fair value ($248)

Significantly Undervalued: 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 (40.6x) compared to the Beverage industry average (31.3x).

PE vs Market: SAM is poor value based on its PE Ratio (40.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SAM is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SAM is overvalued based on its PB Ratio (8.5x) 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 12 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAM's forecast earnings growth (18.9% per year) is above the savings rate (2.7%).

Earnings vs Market: SAM's earnings (18.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: SAM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAM's revenue (10% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SAM's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SAM's Return on Equity is forecast to be high in 3 years time (20.7%)


Next Steps

Past Performance

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

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAM's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: SAM's earnings growth over the past year (14.3%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: SAM earnings growth over the past year (14.3%) exceeded the Beverage industry -1.9%.


Return on Equity

High ROE: SAM's Return on Equity (21.3%) is considered high.


Return on Assets

ROA vs Industry: SAM has a higher Return on Assets than the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: SAM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Boston Beer Company's financial position?


Financial Position Analysis

Short Term Liabilities: SAM's short term assets ($178.8M) do not cover its short term liabilities ($188.3M)

Long Term Liabilities: SAM's short term assets (178.8M) exceeds its long term liabilities (102.3M)


Debt to Equity History and Analysis

Debt Level: SAM's debt to equity ratio (7.2%) is considered satisfactory

Reducing Debt: SAM's debt to equity ratio has increased from 0.2% to 7.2% over the past 5 years.

Debt Coverage: SAM's debt is well covered by operating cash flow (440.6%).

Interest Coverage: SAM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: SAM's debt is covered by short term assets (assets are 4.766820x debt).


Next Steps

Dividend

What is Boston Beer Company'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 SAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SAM'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 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

What is the CEO of Boston Beer Company's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Dave Burwick (57yo)

1.5yrs

Tenure

US$20,037,668

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

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


Board Age and Tenure

4.9yrs

Average Tenure

58yo

Average Age

Experienced Board: SAM's board of directors are considered experienced (4.9 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$157,93725 Feb 19
Frank Smalla
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares519
Max PriceUS$307.69
SellUS$241,09626 Nov 18
David Grinnell
EntityIndividual
Shares784
Max PriceUS$307.52
SellUS$209,16030 Oct 18
Quincy Troupe
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Supply Chain
Shares700
Max PriceUS$298.80

Ownership Breakdown


Management Team

  • Jim Koch (69yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: US$1.51m
  • Dave Burwick (57yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$20.04m
  • Matt Murphy (50yo)

    Chief Accounting Officer

    • Tenure: 4.2yrs
  • Sam Calagione

    Founder & Brewer of Dogfish Head

    • Tenure: 0yrs
  • John Geist (59yo)

    Chief Sales Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.66m
  • Lesya Lysyj (56yo)

    Chief Marketing Officer

    • Tenure: 0.5yrs
  • Frank Smalla (53yo)

    CFO & Treasurer

    • Tenure: 3.7yrs
    • Compensation: US$1.71m
  • Quincy Troupe (53yo)

    Senior Vice President of Supply Chain

    • Tenure: 3.8yrs
    • Compensation: US$1.15m
  • Tara Heath (44yo)

    VP of Legal & Deputy General Counsel

    • Tenure: 3.3yrs
  • Cheryl Fisher (60yo)

    Vice President of Human Resources

    • Tenure: 3yrs

Board Members

  • Jim Koch (69yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: US$1.51m
  • Cynthia Fisher (58yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: US$144.93k
  • David Fialkow (60yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$156.93k
  • Jean-Michel Valette (58yo)

    Lead Director

    • Tenure: 6.4yrs
    • Compensation: US$175.93k
  • Dave Burwick (57yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$20.04m
  • Michael Spillane (59yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$156.93k
  • Meghan Joyce (34yo)

    Director

    • Tenure: 0.6yrs

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$4.645b
  • Shares outstanding: 11.98m
  • 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 Analysis2019/10/15 23:31
End of Day Share Price2019/10/15 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.