Big Rock Brewery (BR) AI Stock Analysis

• Market Cap: C$20.37M
• Dividend Yield: N/A
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 25.86%
• EPS Growth: -62.85%
• Country: CA
• Employees: 92
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): >-0.01
• Shares Outstanding: 24,538,513
• 10 Day Avg. Volume: 600
• 30 Day Avg. Volume: 1,880
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -1.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.84 ▲(11.87% Upside)

Big Rock Brewery's stock is currently facing significant challenges. The most impactful factor is the poor financial performance, with consistent net losses and cash flow issues. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Diversified revenue streams

Big Rock's multi-channel model (packaged, draft, DTC, restaurant, events, distributor ties) creates durable revenue diversification. This reduces dependence on a single channel, smooths seasonal swings, and supports brand reach and resilience over the next several months as channels recover or shift.

Manageable leverage and equity funding

A debt-to-equity of 0.42 and ~54% equity financing indicate a moderate capital structure, affording the company flexibility to fund operations or investments without excessive interest burden. This balance supports stability and lowers refinancing risk across a 2-6 month horizon.

Stable product-level gross margins

A ~27% gross margin suggests the core brewing and product economics are reasonably healthy. With stable product margins, management can focus on operating expense efficiencies and marketing to drive path-to-profitability, giving a credible route to improved results over several quarters.

Negative Factors

Consistent net losses and negative profitability

A sustained negative net margin near -21% shows the business is not currently generating operating profits after expenses. Persistent losses erode equity, limit reinvestment capacity, and require either sustained cash support or rapid margin improvements to restore long-term financial health.

Negative operating cash flow

Failure to convert earnings into positive operating cash flow indicates the business is burning cash from core operations. Even with some free cash flow relative to losses, negative operating cash flow raises financing needs and constrains capital allocation decisions in the medium term.

Severely negative return on equity

An ROE of -44% signals material destruction of shareholder capital and inefficiency in deploying equity into profitable growth. This is a structural red flag for management effectiveness and suggests substantial operational or strategic adjustments are required to restore investor returns.

Big Rock Brewery Business Overview & Revenue Model

Company Description

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. The company operates through two segments, Wholesale and Retail. It offers a selection of beer, ciders, and RTD beverages under the Big Rock, Tree Brewing, Rock Creek Cider, Dukes Cider, AGD, Shaftbury, Bow Valley, White Peaks, and Cottage Springs brands. The company also provides apparel and accessories, including jackets, headwear, sweaters, glassware, belt buckles, and coolers. It sells its products to provincial liquor boards, grocery chains, on-premise and contract manufacturing customers; and through premises owned and/or operated by the Corporation, Big Rock's website, and third-party delivery services. Big Rock Brewery Inc. was founded in 1985 and is headquartered in Calgary, Canada.

How the Company Makes Money

Big Rock Brewery generates revenue primarily through the sale of its craft beers, which are distributed across various channels including retail locations, bars, restaurants, and through direct-to-consumer sales at its brewery and online. The company benefits from a diverse revenue model that includes not only the sales of packaged products but also draft beer sales in pubs and restaurants. Additionally, the brewery hosts events and tours which contribute to its earnings. Key partnerships with distributors and retailers enhance its market reach, while seasonal and limited-edition brews create excitement and drive sales during peak times. Furthermore, the brewery's restaurant adds an additional layer to its revenue through food sales and brewery tours, fostering a unique customer experience that encourages brand loyalty.

Big Rock Brewery Financial Statement Overview

Summary

Big Rock Brewery is facing significant financial challenges across its income statement, balance sheet, and cash flow. Despite some revenue growth, profitability remains elusive with consistent net losses. The balance sheet shows a moderate debt level, but the negative return on equity is concerning. Cash flow issues further exacerbate the financial strain, highlighting the need for strategic improvements to enhance profitability and cash generation.

Income Statement

Big Rock Brewery's income statement reveals a challenging financial position. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 27.34%, which is relatively stable compared to previous years. However, the company is struggling with profitability, as indicated by a negative net profit margin of -20.68% and a negative EBIT margin of -17.46%. Despite a revenue growth rate of 6.97% in the TTM, the company has consistently reported net losses over the past years, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 0.42 in the TTM, indicating a manageable level of debt relative to equity. However, the return on equity is significantly negative at -44.11%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 54.19%, suggesting a reasonable level of equity financing, but the negative ROE remains a concern.

Cash Flow

Cash flow analysis shows a challenging situation with negative operating cash flow in the TTM. The free cash flow to net income ratio is 1.49, indicating that the company is generating some free cash flow relative to its net losses. However, the operating cash flow to net income ratio is negative, reflecting difficulties in converting earnings into cash. Despite a slight improvement in free cash flow growth, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.70M	43.36M	43.68M	47.10M	45.98M	43.98M
Gross Profit	14.62M	10.71M	12.95M	10.48M	14.82M	16.48M
EBITDA	-6.00M	-7.97M	2.62M	-4.20M	632.00K	3.62M
Net Income	-9.54M	-13.47M	-2.93M	-7.10M	-3.26M	-666.00K
Balance Sheet
Total Assets	47.66M	40.06M	52.79M	51.63M	54.82M	51.95M
Cash, Cash Equivalents and Short-Term Investments	724.00K	372.00K	1.04M	612.00K	228.00K	252.00K
Total Debt	11.68M	18.90M	19.59M	17.52M	14.58M	9.06M
Total Liabilities	21.83M	30.87M	30.27M	26.42M	23.12M	17.13M
Stockholders Equity	25.83M	9.20M	22.53M	25.20M	31.70M	34.82M
Cash Flow
Free Cash Flow	-6.76M	-4.81M	-2.63M	-2.62M	-7.37M	3.08M
Operating Cash Flow	-4.79M	-1.49M	-2.36M	-1.33M	962.00K	4.33M
Investing Cash Flow	-2.31M	-479.00K	827.00K	-966.00K	-5.25M	-1.25M
Financing Cash Flow	6.73M	1.30M	1.96M	2.69M	4.26M	-3.18M

Big Rock Brewery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Positive
• 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 TSE:BR, the sentiment is Positive. The current price of 0.75 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.80, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BR.

Big Rock Brewery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADW.A	70 Outperform	C$253.97M	11.01	8.25%	4.71%	-2.11%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BR	41 Neutral	C$20.37M	-0.60	-42.75%	―	25.86%	-62.85%

Big Rock Brewery Corporate Events

Big Rock Brewery Adds Logistics Veteran and New VN Capital Representative to Board

Big Rock Brewery has strengthened its board with the appointment of logistics and distribution veteran Pat Carey, former CEO of Wallace & Carey and co-founder of warehousing-optimization software firm Sitewise Solutions, as part of its strategy to expand its distribution and logistics business. The company also announced a board transition at shareholder VN Capital’s designated seat, with James Vanasek, principal of VN Capital Management and an experienced value investor and former chair of Ceres Global Ag, replacing outgoing director Don Noone, signaling continued investor engagement and governance support for Big Rock’s evolving growth strategy.

The most recent analyst rating on (TSE:BR) stock is a Hold with a C$0.69 price target. To see the full list of analyst forecasts on Big Rock Brewery stock, see the TSE:BR Stock Forecast page.

Big Rock Brewery Reports Strong Q3 2025 Results with 36% Sales Increase

Big Rock Brewery Inc. announced a significant increase in sales volumes and financial performance for the third quarter of 2025. The company reported a 36% increase in sales volumes and a 27.4% rise in net revenue compared to the same period in 2024. The growth was driven by a substantial rise in contract and wholesale sales volumes. The company’s strategic initiatives, including a branding and portfolio refresh, have contributed to these positive results. Additionally, the successful return of the Barn Burner event highlighted the strong community connection with the Big Rock brand.

The most recent analyst rating on (TSE:BR) stock is a Sell with a C$1.00 price target. To see the full list of analyst forecasts on Big Rock Brewery stock, see the TSE:BR Stock Forecast page.