The Boston Beer Company, Inc.
The Boston Beer Company, Inc. Fundamental Analysis
The Boston Beer Company, Inc. (SAM) shows moderate financial fundamentals with a PE ratio of -37.08, profit margin of -2.92%, and ROE of -7.30%. The company generates $2.1B in annual revenue with moderate year-over-year growth of 3.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAM's fundamental strength across five key dimensions:
Efficiency Score
WeakSAM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSAM trades at attractive valuation levels.
Growth Score
ModerateSAM shows steady but slowing expansion.
Financial Health Score
ModerateSAM shows balanced financial health with some risks.
Profitability Score
WeakSAM struggles to sustain strong margins.
Key Financial Metrics
Is SAM Expensive or Cheap?
P/E Ratio
SAM trades at -37.08 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAM's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values The Boston Beer Company, Inc. at 3.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 103.57 times EBITDA. This signals the market has high growth expectations.
How Well Does SAM Make Money?
Net Profit Margin
For every $100 in sales, The Boston Beer Company, Inc. keeps $-2.92 as profit after all expenses.
Operating Margin
Core operations generate -3.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-7.30 in profit for every $100 of shareholder equity.
ROA
The Boston Beer Company, Inc. generates $-5.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Boston Beer Company, Inc. produces operating cash flow of $253.95M, showing steady but balanced cash generation.
Free Cash Flow
The Boston Beer Company, Inc. produces free cash flow of $195.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $18.23 in free cash annually.
FCF Yield
SAM converts 8.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-37.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.11
vs 25 benchmark
How SAM Stacks Against Its Sector Peers
| Metric | SAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -37.08 | 22.11 | Better (Cheaper) |
| ROE | -7.30% | 1177.00% | Weak |
| Net Margin | -2.92% | -5412.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 2.52 | Weak Liquidity |
| ROA | -5.23% | -605246.00% (disorted) | Weak |
SAM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Boston Beer Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.26%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-35.48%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
21.74%
Industry Style: Defensive, Dividend, Low Volatility
High Growth