Boston Beer Co Inc

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SAM : NYSE : Consumer Goods
$145.65 -0.9 | -0.61%
Today's Range: 145.7 - 146.4
Avg. Daily Volume: 168200.0
08/23/17 - 10:04 AM ET

Financial Analysis


BOSTON BEER INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. BOSTON BEER INC has average liquidity. Currently, the Quick Ratio is 1.09 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.28% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)247.93244.82
EBITDA ($mil)59.6954.27
EBIT ($mil)46.7941.83
Net Income ($mil)29.1326.62


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)71.6527.58
Total Assets ($mil)601.51590.57
Total Debt ($mil)0.00.47
Equity ($mil)421.66412.23


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin59.2656.91
EBITDA Margin24.0722.16
Operating Margin18.8717.08
Sales Turnover1.471.59
Return on Assets14.7114.96
Return on Equity20.9921.44
Debt Q2 FY17 Q2 FY16
Current Ratio1.691.51
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)12.0312.38
Div / share0.00.0
EPS2.352.06
Book value / share35.0633.31
Institutional Own % n/a n/a
Avg Daily Volume162677.0195539.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 40.61 for the Beverages industry and a discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 4.22 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 6.73. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. 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 21.05 Peers 40.61   SAM 10.85 Peers 20.61

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

SAM is trading at a significant 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 24.67 Peers 25.55   SAM NM Peers 1.38

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 4.22 Peers 6.73   SAM 5.71 Peers 5.16

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.

 

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

SAM is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SAM 2.02 Peers 4.52   SAM -6.32 Peers 15.42

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SAM significantly trails its peers on the basis of sales growth

 

 

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