Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 257.85K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.47
• Revenue Growth: 0.21%
• EPS Growth: -20.69%
• Country: US
• Employees: 2,793
• Sector: Consumer Defensive
• Sector Strength: 65
• Industry: Beverages - Alcoholic
• EPS (TTM): 4.93
• Shares Outstanding: 9,175,801
• 10 Day Avg. Volume: 239,961
• 30 Day Avg. Volume: 257,847
• PEG Ratio: 53.79
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.27
• Price to Cash Flow (P/CF): 15.30
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $271.89
• Price Target Upside: 19.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Boston Beer's stock reflects a mixed outlook. The company shows strong revenue growth and cost management, but profitability and cash flow pressures persist. The technical indicators suggest bearish momentum. The stock's high P/E ratio points to an expensive valuation, and no dividend yield limits income returns. Positive aspects from the earnings call, such as margin expansion and EPS growth, are countered by challenges in market segments and increased competition.

Positive Factors

Margin Improvement

The potential for gross margins to recover to high-40s% is driven by SAM’s initiatives on procurement, waste and network optimization, and brewery performance.

Product Launch

Sun Cruiser is seen as a promising product for 2025, with potential to drive premiumization in the hard tea segment.

Negative Factors

Brand Investment

A still challenged volume outlook and uncertain returns on SAM's planned step-up in brand investment.

Sales Growth

Twisted Tea's sales growth has slowed significantly, contributing to a reduced revenue growth outlook.

Boston Beer Business Overview & Revenue Model

Company Description

Boston Beer Company, Inc. (SAM), founded in 1984, is a leading American brewery known for its extensive range of high-quality craft beers. The company is best recognized for its flagship product, Samuel Adams Boston Lager, but it also offers a diverse portfolio that includes seasonal brews, ciders, hard seltzers, and other alcoholic beverages. Operating primarily in the alcoholic beverage sector, Boston Beer has established itself as a pioneer in the craft beer industry, consistently focusing on innovation, quality, and brand authenticity to maintain its competitive edge.

How the Company Makes Money

Boston Beer Company generates revenue primarily through the sale of its wide variety of alcoholic beverages, including craft beers, hard ciders, hard seltzers, and other specialty drinks. The company's revenue streams are largely derived from wholesale distribution to retailers, bars, and restaurants across the United States and internationally. Additionally, Boston Beer benefits from direct-to-consumer sales via its own taprooms and online platforms. Strategic partnerships and collaborations with other beverage companies and brands further enhance its market presence and contribute to its revenue growth. The company invests heavily in marketing and brand promotion to drive sales and maintain customer loyalty, while its innovative approach to product development helps it capture new market trends and expand its consumer base.

Boston Beer Financial Statement Overview

Summary

Boston Beer demonstrates steady revenue growth with efficient cost management as seen in its solid gross profit margin. While the company enjoys a strong equity base and low leverage, there are pressures on profitability margins and cash flow generation. Continued attention to operational efficiency and cash management will be crucial for sustaining financial health.

Income Statement

Boston Beer has shown consistent growth in total revenue over the years, with a recent increase from $2,008.6 million to $2,137.8 million, indicating a positive revenue growth trend. The gross profit margin is healthy at 41.8%, reflecting efficient cost management. However, the decline in EBIT and EBITDA margins to 3.6% each from higher values in previous years suggests rising operational challenges. Net profit margin has decreased to 2.8% from 3.8%, indicating narrowing profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04, reflecting minimal leverage. The equity ratio is robust at 73.3%, indicating a solid equity base relative to total assets. Return on equity (ROE) has slightly decreased to 6.5% from previous years, suggesting moderate efficiency in generating profits from shareholders' equity.

Cash Flow

Boston Beer has maintained a positive free cash flow, though it decreased to $172.6 million, highlighting effective cash generation despite lower operating cash flow of $248.9 million. The free cash flow to net income ratio is strong at 2.89, indicating effective conversion of profits into cash. However, the decline in operating cash flow from previous years suggests potential pressures on liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.14B	2.01B	2.09B	2.06B	1.74B
	Gross Profit
893.73M	852.37M	861.99M	797.79M	814.45M
	EBIT
75.97M	100.00M	161.31M	106.35M	244.21M
	EBITDA
245.78M	209.96M	242.67M	87.13M	317.44M
	Net Income Common Stockholders
59.70M	76.25M	67.26M	14.55M	191.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
211.82M	298.49M	180.56M	26.85M	163.28M
	Total Assets
1.25B	1.43B	1.42B	1.39B	1.38B
	Total Debt
35.94M	45.27M	54.14M	61.48M	67.40M
	Net Debt
-175.88M	-253.22M	-126.42M	34.63M	-95.88M
	Total Liabilities
333.83M	352.06M	352.22M	408.17M	421.86M
	Stockholders Equity
916.19M	1.08B	1.07B	983.41M	956.97M
Cash Flow		Free Cash Flow
172.62M	201.06M	109.36M	-91.62M	113.41M
	Operating Cash Flow
248.89M	265.15M	199.94M	56.30M	253.41M
	Investing Cash Flow
-96.25M	-62.38M	-88.51M	-146.62M	-139.12M
	Financing Cash Flow
-239.31M	-84.84M	2.80M	-6.64M	12.32M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Negative. The current price of 227.96 is below the 20-day moving average (MA) of 233.61, below the 50-day MA of 240.55, and below the 200-day MA of 278.30, indicating a bearish trend. The MACD of -5.10 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 38.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUD	74 Outperform	$125.29B	21.57	7.31%	1.02%	0.64%	10.02%
TAP	74 Outperform	$11.96B	11.03	8.54%	3.03%	-0.64%	22.45%
BF.B	72 Outperform	$16.39B	16.70	27.99%	2.52%	-5.11%	3.64%
Sector *	62 Neutral	$20.53B	13.72	-10.76%	7.35%	1.61%	5.95%
SAM	61 Neutral	$2.56B	46.23	5.99%	―	0.21%	-20.69%
STZ	61 Neutral	$32.33B	47.89	7.94%	2.26%	3.69%	-55.78%

Boston Beer Corporate Events

Boston Beer Announces $50 Million Stock Repurchase Plan

On March 12, 2025, Jean-Michel Valette announced his decision to retire from the Board of Directors of Boston Beer Company after the 2025 Annual Meeting of Stockholders, clarifying that his departure was not due to any disagreements with the company. Additionally, on March 13, 2025, Boston Beer Company initiated a 10b5-1 plan to repurchase up to $50 million of its Class A Common Stock between March 31, 2025, and June 27, 2025, indicating a strategic move to potentially enhance shareholder value.

Boston Beer Sets New Executive Compensation Plans

Boston Beer Company, known for its alcoholic beverages, has announced executive compensation details for fiscal year 2024 and 2025. The company has set bonus targets based on performance against certain goals such as depletions growth, EBIT targets, and cost savings. In 2024, the company achieved 90% on its bonus scale, leading to approved bonuses for its executives. For 2025, the company has set new salary and bonus targets, with the Compensation Committee approving increased base salaries and long-term equity awards, including restricted stock units (RSUs) and option awards, for its Named Executive Officers (NEOs). Vesting of these awards is contingent upon continued employment and performance-based criteria related to revenue growth.