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Boston Beer Co Inc
SAM : NYSE : Consumer Goods
$155.41 -1.07 | -0.68%
Today's Range: 154.82 - 156.81
Avg. Daily Volume: 175,300
04/28/16 - 4:00 PM ET

Financial Analysis


BOSTON BEER INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. BOSTON BEER INC has weak liquidity. Currently, the Quick Ratio is 1.00 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.07% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)188.83199.5
EBITDA ($mil)23.2732.45
EBIT ($mil)11.2422.14
Net Income ($mil)7.0313.74


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)51.13122.16
Total Assets ($mil)607.83655.62
Total Debt ($mil)0.470.53
Equity ($mil)435.35495.12


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin54.8455.1
EBITDA Margin12.3216.26
Operating Margin5.9511.1
Sales Turnover1.561.4
Return on Assets15.0814.66
Return on Equity21.0619.42
Debt Q1 FY16 Q1 FY15
Current Ratio1.82.45
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)12.6613.3
Div / share0.00.0
EPS0.531.0
Book value / share34.3837.24
Institutional Own % n/a n/a
Avg Daily Volume175880.0175737.0

Valuation


HOLD. BOSTON BEER INC's P/E ratio indicates a discount compared to an average of 28.03 for the Beverages industry and a value on par with the S&P 500 average of 24.18. To use another comparison, its price-to-book ratio of 4.55 indicates a significant premium versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 7.38. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, BOSTON BEER INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SAM 23.11 Peers 28.03   SAM 12.90 Peers 20.34

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SAM is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SAM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SAM 21.84 Peers 25.39   SAM NM Peers 1.61

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SAM is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SAM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SAM 4.55 Peers 7.38   SAM -4.25 Peers -5.01

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SAM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SAM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SAM 2.09 Peers 4.45   SAM 3.33 Peers -5.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SAM is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SAM has a sales growth rate that significantly exceeds its peers.

 

 

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