Big Rock Brewery (BR) AI Stock Analysis

• Market Cap: C$18.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• 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: 24,442,630
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.69 ▼(-10.91% Downside)

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

Revenue Growth

Consistent revenue growth indicates strong demand for Big Rock's products and potential for market expansion, supporting long-term business stability.

Diverse Revenue Model

A diverse revenue model reduces dependency on a single channel, enhancing resilience against market fluctuations and supporting sustainable growth.

Moderate Debt Level

A moderate debt level provides financial flexibility and reduces risk, allowing Big Rock to invest in growth opportunities without excessive leverage.

Negative Factors

Consistent Net Losses

Ongoing net losses highlight operational inefficiencies and challenge profitability, which could hinder long-term financial health and growth potential.

Negative Cash Flow

Negative cash flow indicates difficulties in sustaining operations and investing in growth, potentially impacting Big Rock's ability to compete effectively.

Negative Return on Equity

A negative ROE suggests inefficiencies in generating shareholder returns, which could deter investment and affect long-term company valuation.

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 faces significant challenges in profitability and cash flow management, despite some improvements in leverage and revenue growth. The company needs to focus on enhancing operational efficiency and cash flow generation to improve its financial health. While there are positive signs in revenue growth and leverage management, the persistent negative margins and cash flow issues pose risks to financial stability.

Income Statement

Big Rock Brewery's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin improved to 27.34% from 24.71% in the previous year, indicating better cost management. However, the net profit margin remains negative at -20.68%, reflecting ongoing profitability challenges. Revenue growth is positive at 9.18% TTM, but the company has struggled with consistent revenue growth in previous years. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.42 TTM, which is an improvement from 2.05 in the previous year, suggesting better leverage management. However, the return on equity is negative at -52.23%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 55.54%, reflecting a stable capital structure.

Cash Flow

Cash flow analysis shows challenges with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is 1.49, indicating that free cash flow is higher than net income, which is a positive sign. However, the operating cash flow to net income ratio is negative, highlighting cash flow management issues. Free cash flow growth is negative at -13.64% TTM, indicating declining cash generation capabilities.

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: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.88, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BR.

Big Rock Brewery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ADW.A	60 Neutral	C$239.51M	10.81	8.25%	4.71%	-2.11%	―
BR	41 Neutral	C$18.82M	-0.56	-42.75%	―	25.86%	-62.85%

Big Rock Brewery Corporate Events

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.