Big Rock Brewery, Inc. (BR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Corby Spirit & Wine Ltd.

Andrew Peller Ltd.

Molson Coors Canada, Inc.

Diamond Estates Wines & Spirits, Inc.

Big Rock Brewery, Inc.

Wildpack Beverage, Inc.

SBD Capital Corp.

Why is Big Rock Brewery, Inc. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 1.01% and Operating profit at -199.32% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.19 times

Flat results in Mar 26

NET SALES(HY) At CAD 15.17 MM has Grown at -23.11%
OPERATING PROFIT MARGIN(Q) Lowest at -7.31 %
RAW MATERIAL COST(Y) Grown by 17.47% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -39.47%, its profits have risen by 75.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.47% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Big Rock Brewery, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Big Rock Brewery, Inc.

-100.0%

-1.65

50.26%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.01%

EBIT Growth (5y)

-199.32%

EBIT to Interest (avg)

-1.60

Debt to EBITDA (avg)

7.54

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.30

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.17%

ROCE (avg)

0.88%

ROE (avg)

0.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.76

EV to EBIT

-16.17

EV to EBITDA

27.90

EV to Capital Employed

0.83

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.13%

ROE (Latest)

-11.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 0.44 MM

NET PROFIT(HY)

Higher at CAD -2.85 MM

ROCE(HY)

Highest at -10.83%

-17What is not working for the Company

NET SALES(HY)

At CAD 15.17 MM has Grown at -23.11%

OPERATING PROFIT MARGIN(Q)

Lowest at -7.31 %

RAW MATERIAL COST(Y)

Grown by 17.47% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.48 times

OPERATING PROFIT(Q)

Lowest at CAD -0.74 MM

PRE-TAX PROFIT(Q)

Lowest at CAD -1.78 MM

NET PROFIT(Q)

Lowest at CAD -1.78 MM

EPS(Q)

Lowest at CAD -0.07

Here's what is working for Big Rock Brewery, Inc.

Operating Cash Flow

Highest at CAD 0.44 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Here's what is not working for Big Rock Brewery, Inc.

Pre-Tax Profit

At CAD -1.78 MM has Fallen at -3,538.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -1.78 MM has Fallen at -3,538.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Profit Margin

Lowest at -7.31 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

At CAD 15.17 MM has Grown at -23.11%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD -0.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Pre-Tax Profit

Lowest at CAD -1.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -1.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Lowest at 3.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 17.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales