Boston Beer Co Inc (SAM) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Boston Beer's price-to-book of 3.02 is above the Beverages median of 2.94.

Trading below fair value

The share price of $219.16 is below our fair value estimate of $260.56.

Margin of safety under 20%

The price is 15.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 22.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -179% over the last twelve months, against a 5-year average of -10.8% a year.

Growing slower than the industry

Revenue grew -3.7% over the last twelve months; the Beverages median is 4.5%.

Guidance lowered

Boston Beer lowered its Full Year 2026 Advertising, Promotion, and Selling Expense Year Over Year Change ($ million) outlook on Jul 23, 2026.

Gross margin improving

Gross margin was 49.1% over the last twelve months, against 47.7% a year earlier.

Return on equity under 15%

Return on equity was -8.9% over the last twelve months and averaged 6.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -14.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Boston Beer's return on equity of -8.9% is below the Beverages median of 12.6%.

Earnings shrank over 5 years

Net income shrank 10.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -3.8% over the last twelve months, against a 5-year average of 3.2%.

Net margin below the industry

Boston Beer's net margin of -3.8% is below the Beverages median of 7.3%.

No debt

Boston Beer has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.13 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.02; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Boston Beer has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.