Boston Beer Co Inc

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SAM : NYSE : Consumer Goods
$173.55 -1.4 | -0.8%
Today's Range: 172.1 - 176.5
Avg. Daily Volume: 221500.0
12/09/16 - 4:02 PM ET

Financial Analysis


BOSTON BEER INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. BOSTON BEER INC has average liquidity. Currently, the Quick Ratio is 1.21 which shows that technically this company has the 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 9.00% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)253.43293.09
EBITDA ($mil)63.1472.22
EBIT ($mil)50.3161.1
Net Income ($mil)31.5338.62


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)77.27134.61
Total Assets ($mil)627.5690.92
Total Debt ($mil)0.470.47
Equity ($mil)450.24494.8


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin57.7857.36
EBITDA Margin24.9124.64
Operating Margin19.8520.85
Sales Turnover1.441.39
Return on Assets12.9514.67
Return on Equity18.0520.48
Debt Q3 FY16 Q3 FY15
Current Ratio1.922.05
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)12.4912.98
Div / share0.00.0
EPS2.482.85
Book value / share36.0538.11
Institutional Own % n/a n/a
Avg Daily Volume228133.0159823.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 30.23 for the Beverages industry and a premium compared to the S&P 500 average of 25.22. To use another comparison, its price-to-book ratio of 4.80 indicates a significant premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.13. 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 27.55 Peers 30.23   SAM 15.83 Peers 19.89

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SAM is trading at a valuation on par with 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 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 26.62 Peers 21.94   SAM NM Peers 1.52

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 premium to 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 4.80 Peers 7.13   SAM -15.48 Peers -2.27

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 2.39 Peers 4.05   SAM -6.28 Peers -0.96

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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