Boston Beer Co., Inc. (SAM) 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

Brown-Forman Corp.

Boston Beer Co., Inc.

Fresh Vine Wine, Inc.

Molson Coors Beverage Co.

Willamette Valley Vineyards, Inc.

Constellation Brands, Inc.

Vintage Wine Estates, Inc.

Why is Boston Beer Co., Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -1.96% of over the last 5 years

Flat results in Jun 25

With ROE of 14.77%, it has a very expensive valuation with a 2.75 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.69%, its profits have risen by 16.7% ; the PEG ratio of the company is 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -36.69% returns in the last 1 year, the stock has also underperformed S&P 500 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 Boston Beer Co., Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Boston Beer Co., Inc.

-8.63%

-0.97

32.77%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.47%

EBIT Growth (5y)

-10.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

2.05

Tax Ratio

31.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.33%

ROE (avg)

11.52%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.84

EV to EBIT

14.43

EV to EBITDA

9.04

EV to Capital Employed

3.44

EV to Sales

1.11

PEG Ratio

7.00

Dividend Yield

ROCE (Latest)

23.84%

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.11% (YoY

NET PROFIT(Q)

Highest at USD 66.78 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 247.79 MM

ROCE(HY)

Lowest at -7.75%

DEBTORS TURNOVER RATIO(HY)

Lowest at 20.36 times

PRE-TAX PROFIT(Q)

Fallen at -35.53%

EPS(Q)

Lowest at USD -13.88

Here's what is working for Boston Beer Co., Inc.

Net Profit

At USD 66.78 MM has Grown at 173.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

Highest at USD 66.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -2.11% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Boston Beer Co., Inc.

Operating Cash Flow

Lowest at USD 247.79 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Fallen at -35.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -13.88

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 20.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio