Boston Beer Company Inc ($SAM) Cautious Buy or Hold to $182 Confident Investor Rating: Fair
| Company name | Boston Beer Company Inc |
| Stock ticker | SAM |
| Live stock price | [stckqut]SAM[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Fair |
| P/E growth | Poor |
| EBIT growth | Fair |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $237.13 |
| Target stock price (averages with growth) | $236.85 |
| Target stock price (averages with no growth) | $177.28 |
| Target stock price (manual assumptions) | $190.58 |
The following company description is from Google Finance: https://finance.google.com/finance?q=sam
The Boston Beer Company, Inc. is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in selected international markets. The Company operates through two segments: Boston Beer Company segment, and A&S Brewing Collaborative segment. The Boston Beer Company segment comprises of the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands. The A&S Brewing Collaborative segment comprises of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. Both segments sell low alcohol beverages. The Company produces malt beverages and hard cider at the Company-owned breweries and under contract arrangements at other brewery locations. As of December 31, 2016, the Company sold its products to a network of approximately 350 wholesalers in the United States and to a network of distributors.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Boston Beer Company Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. Due to these concerns, I am removing Boston Beer from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Boston Beer Company Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $191.1
- Growth: 0.1
- Current EPS (TTM): $7.33
- P/E: 26
- Future EPS Calc: $11.8
- Future Stock Price Calc: $306.93
- Target stock price: $190.58
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I hope that this makes you a Confident Investor.