Boston Beer Stock Analysis, Valuation (NYSE:SAM)

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$220.8 $0.3 (0.14%) SAM stock closing price Apr 23, 2018 (Closing)
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Boston Beer
Updated on : Apr 23, 2018
previous close
SAM 220.8 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
9.1%
Operating Profit
Operating Margin:
12.9%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$27.8M
Net Income:
$30.5M
PROS      CONS
Operating Margins
ROIC
ROE
Recent Growth
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SAM PS :
2.9
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
26.9%
Return on Equity:
23.1%
Free Cash Flow Margin:
8.8%
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Boston Beer Stock Analysis

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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 3/5

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 had a healthy average operating margin of 12.9% over the last 4 quarters.
  • Boston Beer has an attractive ROIC (Return on Invested Capital) of 26.9%
  • The LTM ROE of 23.1% for Boston Beer is attractive.

Should you sell SAM stock?

  • Boston Beer sales shrank by -5.9% year-over-year in 2017 Q4.
  • Revenue growth of 9.1% has been weak over the last 5 years.
  • The SAM stock currently trades at a PE of 34.4, which is expensive, compared to the industry average of 22.8.
  • The company is trading at a price to sales multiple of 2.9, which is overvalued in comparison to the Beverages-Alcoholic industry average multiple of 1.6.

Comments on this video and Boston Beer stock

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.