One-glance verdict
Undervalued
$601.35 our estimate vs market $167.50
Wall Street consensus: $199.00 (-66.9% lower than our fair-value estimate)
72% below our estimate, below the bear case
Fundamentals snapshot
The Boston Beer Company, Inc.
SAM · NYQ · Consumer Defensive · Beverages - Brewers
Current price
$167.50
52-week range
$158.68 - $264.46
Market cap
$1.72B
Balance sheet
Healthy
15.28x Strong cushion
Net cash $234.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -8.6% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 9.3% (peer median: 12.7%).
What this company does
The Boston Beer Company, Inc.
The Boston Beer Company produces popular alcoholic drinks like Samuel Adams beer, Twisted Tea, and Truly hard seltzer. It primarily earns money by selling large quantities to wholesalers (the companies that supply stores, bars, and restaurants), making its performance heavily reliant on consumer demand for its specific brands in the competitive beverage aisle.
How the company got here
The Boston Beer Company was started in 1984 by Jim Koch, who brewed the first batch of what would become Samuel Adams Boston Lager in his kitchen using his great-great-grandfather's recipe. Initially, he sold the beer bar-to-bar in Boston, and it quickly gained popularity, being voted "Best Beer in America" at the Great American Beer Festival. The company grew by focusing on the craft beer movement and later expanded its offerings to include other alcoholic beverages. A major turning point was the 2019 merger with Dogfish Head Brewery, another well-known craft brewer.
What it actually does
The Boston Beer Company makes and sells a variety of alcoholic drinks. You would recognize their products in grocery stores, convenience stores, and restaurants under brand names like Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard Hard Cider, and Dogfish Head. The company sells these beverages to distributors, who then sell them to the stores and bars where you buy them. While its roots are in beer, a large portion of its business now comes from other types of drinks like hard tea and seltzer.
Twisted Tea
This is the company's brand of hard iced tea, which is a flavored malt beverage. It has become a huge part of the business and is considered a leading growth driver for the company. Consumers who enjoy flavored, ready-to-drink alcoholic beverages are the main customers for this product. Twisted Tea is now one of the top-selling beer brands in the country and represents a significant portion of the company's sales.
Truly Hard Seltzer
Truly is the company's brand of hard seltzer, an alcoholic beverage with carbonated water and flavoring. Introduced in 2016, it quickly became a major player in the popular hard seltzer market. This segment targets drinkers looking for a lighter alternative to beer and other alcoholic drinks. While facing a lot of competition, Truly remains one of the leading hard seltzer brands and is a key part of the company's business outside of traditional beer.
Samuel Adams and Dogfish Head (Craft Beer)
This is the original and most famous part of the company, focusing on craft beers. The Samuel Adams brand, including its flagship Boston Lager, helped pioneer the American craft beer movement. In 2019, the company merged with Dogfish Head Brewery, another iconic craft brewer, strengthening its position in this market. This segment caters to beer enthusiasts who appreciate more traditional and innovative beer styles.
Angry Orchard Hard Cider
This is the company's brand of hard cider, an alcoholic beverage made from fermented apples. Launched in 2011, Angry Orchard became a leading brand in the U.S. cider market. It appeals to consumers who might not prefer beer but enjoy a different kind of fermented beverage. This brand provides another important source of revenue (the money a company makes from sales) for the company beyond its beer and seltzer products.
What management is betting on now
The company's leadership is focused on growing its key brands, especially Twisted Tea, and launching new, innovative drinks like Sun Cruiser. They are also working on improving profitability by making their supply chain (the entire process of making and selling goods, from getting raw materials to delivering the final product to stores) more efficient. Management sees opportunities in the growing market for premium and flavored alcoholic beverages. A key part of their strategy is to invest more in marketing to attract new customers to their diverse portfolio of drinks.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$99.19M
FY2024 Q4
$18.39M
FY2025 Q1
$-7.98M
FY2025 Q2
$112.25M
FY2025 Q3
$89.24M
FY2025 Q4
$22.09M
FY2026 Q1
$-32.76M
FY2026 Q2
$127.47M
Revenue
$568.34M
Net income
$51.57M
Diluted EPS
4.96
Operating cash flow
$138.01M
Free cash flow
$127.47M
Fetching…
Sources
Revenue
$433.93M
Net income
$-145.26M
Diluted EPS
-13.88
Operating cash flow
$-20.43M
Free cash flow
$-32.76M
Fetching…
Sources
Revenue
$385.68M
Net income
$-22.53M
Diluted EPS
-1.97
Operating cash flow
$39.94M
Free cash flow
$22.09M
Fetching…
Sources
Revenue
$537.49M
Net income
$46.16M
Diluted EPS
4.25
Operating cash flow
$101.80M
Free cash flow
$89.24M
Fetching…
Sources
Revenue
$587.95M
Net income
$60.43M
Diluted EPS
5.45
Operating cash flow
$126.48M
Free cash flow
$112.25M
Fetching…
Sources
Revenue
$453.87M
Net income
$24.41M
Diluted EPS
2.16
Operating cash flow
$1.94M
Free cash flow
$-7.98M
Fetching…
Sources
Revenue
$402.30M
Net income
$-38.76M
Diluted EPS
-3.23
Operating cash flow
$41.90M
Free cash flow
$18.39M
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Sources
Revenue
$605.48M
Net income
$33.51M
Diluted EPS
2.86
Operating cash flow
$115.87M
Free cash flow
$99.19M
Fetching…
Sources
Is it cheap or expensive?
Fair value $601.35 vs current price $167.50
Wall Street consensus is the average analyst price target: $199.00 (-66.9% lower than our fair-value estimate).
Our most-likely fair value is $601.35 a share — about 259.0% above today's price of $167.50, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $234.0M - more cash than debt. Interest coverage 15.3x.
Net debt
$-234.00M
Interest coverage
15.28x
The Boston Beer Company, Inc.'s profit covers its interest bill about 15.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SAM
BASELINE
The Boston Beer Company, Inc.
Total debt $31.55M Interest coverage 15.28x This is the baseline the peer rows are being compared against.
Total debt $10.53B Interest coverage 7.92x -48% vs SAM Carries about 1.9x less debt cushion than SAM.
Total debt $7.91B Interest coverage 6.58x -57% vs SAM Carries about 2.3x less debt cushion than SAM.
Total debt $22.20B Interest coverage 2.94x -81% vs SAM Carries about 5.2x less debt cushion than SAM.
Total debt $92.93M Interest coverage 38.30x +151% vs SAM Carries about 2.5x more debt cushion than SAM.
What you should know
The case for and against SAM
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -8.6% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 9.3% (peer median: 12.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
16.35x
P/B
2.36x
P/S
0.90x
EV/EBITDA
7.37x
PEG ratio
0.77x
Profitability
How much profit each dollar creates
Gross margin
48.9%
Operating margin
9.3%
Net margin
-3.6%
ROE
-8.6%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
1.04x
Quick ratio
0.75x
Total debt
$31.55M
Total cash
$265.55M
Growth
How the business has been compounding
Revenue TTM
$1.93B
Revenue 5Y CAGR
-1.1%
EPS TTM
-6.75
EPS 5Y CAGR
22.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$259.31M
Free CF TTM
$215.59M
FCF margin
11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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