-1.18 | -0.69%
BOSTON BEER INC's gross profit margin for the first quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. BOSTON BEER INC has weak liquidity. Currently, the Quick Ratio is 0.84 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 25.57% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 135.93 | 113.27 |
| EBITDA ($mil) | 14.78 | 16.57 |
| EBIT ($mil) | 9.69 | 11.84 |
| Net Income ($mil) | 6.91 | 7.49 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 32.29 | 38.16 |
| Total Assets ($mil) | 345.33 | 277.53 |
| Total Debt ($mil) | 0.8 | 0.0 |
| Equity ($mil) | 245.6 | 195.58 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 53.62 | 58.74 |
| EBITDA Margin | 10.87 | 14.63 |
| Operating Margin | 7.13 | 10.45 |
| Sales Turnover | 1.75 | 1.89 |
| Return on Assets | 17.05 | 25.07 |
| Return on Equity | 23.97 | 35.58 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.77 | 1.96 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 4843.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 12.82 | 12.9 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.51 | 0.56 |
| Book value / share | 19.16 | 15.16 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 83382.0 | 103043.0 |
BUY. BOSTON BEER INC's P/E ratio indicates a significant premium compared to an average of 24.61 for the Beverages industry and a significant premium compared to the S&P 500 average of 18.91. For additional comparison, its price-to-book ratio of 8.73 indicates a significant premium versus the S&P 500 average of 2.42 and a significant premium versus the industry average of 6.23. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, BOSTON BEER INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SAM 38.47 | Peers 24.61 | SAM 26.54 | Peers 105.66 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. SAM is trading at a significant premium 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| SAM 29.62 | Peers 19.68 | SAM 2.89 | Peers 3.19 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. SAM is trading at a significant premium to its peers. |
Average. 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 trades at a valuation on par to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| SAM 8.73 | Peers 6.23 | SAM -14.54 | Peers 0.83 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SAM is trading at a significant premium 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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| SAM 3.56 | Peers 5.24 | SAM 15.03 | Peers -3.61 | |||||||||||||||||||||
|
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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