Boston Beer Stock Analysis, Valuation (NYSE:SAM)
View the Boston Beer stock analysis video on Amigobulls. Our SAM analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Boston Beer Co Inc Stock Rating 2.8/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SAM stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Boston Beer valuation analysis. Boston Beer stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy SAM stock?
- Boston Beer's return on invested capital of 27.5 is good.
- The LTM ROE of 24.1 for Boston Beer is attractive.
Should you sell SAM stock?
- Revenue growth of 9 has been weak over the last 5 years.
- The company's operations consume more cash than it generates. This is not a healthy sign.
- The SAM stock currently trades at a PE of 49.7, which is expensive, compared to the sector average of 21.7.
- The company is trading at a price to sales multiple of 3, which is higher in comparison to the Consumer Staples sector average of 1.7, making SAM stock expensive.
- The company has a negative free cash flow margin of -11.5.
Investors can make use of the Amigobulls Boston Beer stock analysis to ascertain how SAM stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of SAM stock and helps investors in making good buy and sell decision.
Boston Beer revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Boston Beer stock.