Confident Investing Starts With TipRanks Premium

Get 55% Off
TipRanks
Go Ultimate55% OFF

Boston Beer (SAM) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Boston Beer disclosed 20 risk factors in its most recent earnings report. Boston Beer reported the most risks in the “Production” category.

Risk Overview Q3, 2024

Source: the company's latest filing for the period ended Sep 28, 2024, filed Oct 24, 2024

Risk Distribution
20Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Boston Beer disclosed risks per quarterNo. of Risks19.752020.2520.520.752121.25Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Showing: Q4, 2023
Risks removedRisks addedRisks changedBoston Beer Risk Factors
Risk Removed (3)Risk Changed (1)
  • Accounting & Financial Operations - Risk 1
    The Company's acquisition of Dogfish Head included intangible assets that are marked to fair value on an annual basis, which have resulted and could in the future further result in impairment charges that have an adverse impact on the Company's operating results.

    On July 3, 2019, the Company completed its acquisition of Dogfish Head Brewery and various related operations, through the acquisition of all of the equity interests held by certain private entities in Off-Centered Way LLC, the parent holding company of the Dogfish Head Brewery operations. During 2022 and 2023, the Company recorded $27.1 million and $15.8 million, respectively, in non-cash impairment charges for the Dogfish Head brand, as a result of the Company's annual impairment analysis. The impairment determination was primarily based on the latest forecasts of brand performance which have been below the Company's projections made on the acquisition date. As of December 30, 2023, the Dogfish Head brand intangible asset was valued at $55.6 million on the Company's statement of financial position. The Company cannot assure that there will not be further non-cash impairment charges recognized on the Company's Dogfish Head brand intangible assets that would have a material adverse effect on the Company's results of operations.

Read and Evaluate the RiskReserved for Ultimate MembersUpgrade
Ability to Sell (1)

Risk Highlights Q3, 2024

Main Risk Category
Production
With 6 Risks
Number of Disclosed Risks
20
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Sep 2024
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

there is no assurance that the company will grow its business in the future or that the company can adapt to the challenges of the changing competitive environment.changing competitive environmentthe company's acquisition of dogfish head included intangible assets that are marked to fair value on an annual basis, which have resulted and could in the future further result in impairment charges that have an adverse impact on the company's operating results.marked to fairchanges in public attitudes and drinker tastes could harm the company's business. regulatory changes in response to public attitudes could adversely affect the company's business.response to public attitudeschanges in drinker attitudes on brand equity and reliance on the company's founders in the samuel adams and dogfish head brand communications may adversely affect demand for the company's production and results of operations.dogfish head brand communicationsthe company relies upon complex information systems and vulnerabilities or disruptions of these systems could expose us to liability and harm our business and operations.expose us to liabilitythe company is dependent on key ingredient suppliers, including foreign sources; its dependence on foreign sources creates foreign currency exposure for the company; the company's use of natural ingredients creates weather and crop reliability and excess/shortage inventory exposure for the company.excess/shortage inventory exposurethe company's reliance on breweries owned by others and an inability to leverage investment in the company-owned breweries could have a material adverse effect on the company's operations or financial results.inability to leverage investmentthe company faces substantial competition.company faces substantial competitionturnover in company leadership or other key positions may lead to loss of key knowledge or capability and adversely impact company performance.adversely impact company performancechanges in tax, environmental and other regulations, government shutdowns or failure to comply with existing licensing, trade or other regulations could have a material adverse effect on the company's financial condition.failure to comply

Risk Factors Full Breakdown - Total Risks 20

Manufacturing1 | 5.0%
  • Manufacturing - Risk 1
    The Company's operations are subject to certain operating hazards that could result in unexpected costs or product recalls that could harm the Company's business.

    The Company's operations are subject to certain hazards and liability risks faced by all beverage companies, such as potential contamination of ingredients or products by bacteria or other external agents that may be wrongfully or accidentally introduced into products or packaging, or defective packaging and handling. Such occurrences may create bad tasting beverages, or pose health risk to the consumer or risk to the integrity and safety of the packaging. These could result in unexpected costs to the Company and, in the case of a costly product recall, potentially serious damage to the Company's reputation for product quality, as well as product liability claims.

Employment / Personnel1 | 5.0%
Supply Chain3 | 15.0%
Costs1 | 5.0%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.