Boston Beer Intrinsic Value Calculation – Boston Beer Stock a Buy Amidst Twisted Tea Gains and Hard-Seltzer Fizzle
June 30, 2023
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Boston Beer ($NYSE:SAM) Company Inc., commonly referred to as Boston Beer, is an American brewing company known for their Samuel Adams brand of beers. This Massachusetts-based brewery has a long history of success and has recently seen its shares dip amidst the hard-seltzer craze.
However, despite the recent fizzle in hard-seltzer sales, this could be the summer for Boston Beer stock to really shine. Twisted Tea, one of Boston Beer’s products, is starting to gain momentum and is expected to be a big hit this summer. This sweet yet light iced tea has gained a large following of fans and has the potential to return profits to the company. With the profits that could potentially come from Twisted Tea, investors should take another look at Boston Beer and consider it as a buy. Boston Beer stock has been overlooked during the hard-seltzer trend, but now could be the time to invest in the company. With Twisted Tea gaining popularity and hard-seltzer sales beginning to fizzle, this summer could be a hot one for Boston Beer stock. Investors should take a closer look at the potential behind this beaten-down stock and consider it a buy.
Stock Price
On Monday, BOSTON BEER‘s stock opened at $313.1 and closed at $319.2, up by 2.1% from prior closing price of 312.7. This gain can be attributed to the rising sales of Twisted Tea, a hard-tea brand that has seen healthy growth in recent months. Meanwhile, the hard-seltzer market, which has been dominated by White Claw and other competitors, has been fizzling out as of late.
This gives BOSTON BEER a much-needed advantage in the market, making it a strong buy for investors. With its superior product offerings and strong market position, BOSTON BEER is well-positioned for continued growth and success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Boston Beer. More…
| Total Revenues | Net Income | Net Margin |
| 2.07k | 60.26 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Boston Beer. More…
| Operations | Investing | Financing |
| 223.13 | -81.92 | -34.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Boston Beer. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.39k | 351.15 | 84.69 |
Key Ratios Snapshot
Some of the financial key ratios for Boston Beer are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | -7.6% | 5.3% |
| FCF Margin | ROE | ROA |
| 6.7% | 6.5% | 4.9% |
Analysis – Boston Beer Intrinsic Value Calculation
GoodWhale has performed an in-depth analysis of BOSTON BEER‘s wellbeing. Our proprietary Valuation Line has calculated that the intrinsic value of BOSTON BEER share is around $641.2. This means that the current stock price of $319.2 is undervalued by 50.2%. We believe that this presents a great opportunity for investors looking to get into the stock at a discounted rate. More…
Peers
Boston Beer Co Inc is a leading American brewer that manufactures and sells beer and cider under the Samuel Adams, Angry Orchard, and Twisted Tea brands. The company competes with Anheuser-Busch InBev SA/NV, Molson Coors Beverage Co, and Constellation Brands Inc.
– Anheuser-Busch InBev SA/NV ($LTS:0RJI)
Anheuser-Busch InBev SA/NV, a Belgian-Brazilian multinational beverage and brewing company, is the world’s largest brewer. The company was formed through successive mergers of three international brewing groups: Interbrew from Belgium, AmBev from Brazil and Anheuser-Busch from the United States. It has a primary listing on the Euronext Brussels stock exchange and is a component of the Euro Stoxx 50 stock market index.
As of 2019, Anheuser-Busch InBev’s net sales totaled US$52.5 billion, with a gross profit of US$24.2 billion. The company’s operating income totaled US$11.9 billion, and its net income was US$9.3 billion. Its head office is in Leuven, Belgium.
– Molson Coors Beverage Co ($NYSE:TAP)
Molson Coors Beverage Co is a publicly traded company that operates in the brewing industry. The company has a market cap of 10.5B as of 2022 and a Return on Equity of 5.05%. The company’s primary operations are in the United States, Canada, and the United Kingdom. Molson Coors Brewing Company was founded in 1873 by John Molson in Montreal, Canada. The company produces a variety of beer brands including Coors Light, Miller Lite, Molson Canadian, and Carling.
– Constellation Brands Inc ($NYSE:STZ)
Constellation Brands Inc is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, Europe and Asia. The company’s products include some of the world’s best-known brands, such as Corona, Modelo Especial, Ballast Point and SVEDKA Vodka, as well as innovative new products such as High West Whiskey. Constellation Brands is dedicated to delivering exceptional service to its customers and driving sustainable growth for its shareholders.
Summary
Boston Beer (NYSE: SAM) has seen some turbulent times in recent years, with the hard seltzer boom fading.
However, the company’s signature product, Twisted Tea, is gaining momentum and the stock looks ready to see a turnaround. Analysts are bullish, recommending the stock as a buy and expecting it to heat up this summer. Investors should consider the company’s financials, product offerings, and competitive positioning to determine whether to invest. Given its promising outlook and strong potential for growth, Boston Beer could prove to be a lucrative investment.
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