Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 234.54K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.36
• Revenue Growth: 2.46%
• EPS Growth: -7.28%
• Country: US
• Employees: 2,537
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 5.45
• Shares Outstanding: 8,820,623
• 10 Day Avg. Volume: 222,987
• 30 Day Avg. Volume: 234,544
• PEG Ratio: -3.19
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 20.54
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 7.84
• 1Y Price Target: $236.55
• Price Target Upside: 7.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 71 Outperform
• Price Target: $238.00 ▲(8.54% Upside)

Boston Beer scores a 71, driven by solid financial performance and strong cash flow generation. However, the stock faces challenges from a high valuation and mixed technical indicators. The earnings call provided a balanced view with significant achievements in margin expansion but highlighted ongoing challenges in the market environment.

Positive Factors

Strong Cash Flow Generation

The company's ability to generate strong free cash flow highlights effective cash management, providing financial flexibility for investments and shareholder returns.

Margin Expansion

Significant margin expansion reflects improved operational efficiency and cost control, supporting long-term profitability and competitive positioning.

Beyond Beer Category Growth

Growth in the Beyond Beer category, particularly with Sun Cruiser, indicates successful diversification and potential for sustained revenue expansion.

Negative Factors

Decreased Depletions and Shipments

Declines in depletions and shipments suggest weakening demand for core products, potentially impacting revenue stability and market share.

Challenging Macroeconomic Environment

Macroeconomic pressures can lead to reduced consumer spending on discretionary items like alcoholic beverages, affecting sales and growth prospects.

Impact of Tariffs

Tariff-related costs pose a risk to margin sustainability, potentially eroding profitability and requiring strategic adjustments to mitigate impacts.

Boston Beer Business Overview & Revenue Model

Company Description

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names. The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other retail outlets. It also sells in products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

How the Company Makes Money

Boston Beer generates revenue primarily through the sale of its alcoholic beverages, including beers, ciders, and hard seltzers. The company operates on a direct-to-consumer model as well as through distribution agreements with wholesalers and retailers across the United States and internationally. Key revenue streams include the sale of packaged products (cans and bottles) and draft beer served in bars and restaurants. The company's innovative product development, seasonal offerings, and limited-edition releases also help to drive sales. Additionally, partnerships with distributors and retailers enhance market reach and brand visibility, contributing to its overall earnings.

Boston Beer Financial Statement Overview

Summary

Boston Beer is in a solid financial position with stable revenue growth and strong cash flow generation. While profitability metrics suggest areas for operational improvements, the company maintains a healthy balance sheet with low leverage, supporting its ability to invest in growth opportunities.

Income Statement

Boston Beer shows solid profitability with a healthy gross profit margin of 45.1% and a net profit margin of 3.8% in TTM (Trailing-Twelve-Months). The revenue growth rate is moderate at 5%, indicating stable sales performance. However, EBIT and EBITDA margins are relatively low at 5% and 11.7%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The equity ratio stands at 71.9%, reflecting a strong capital structure. However, the return on equity (ROE) is modest at 8.7%, pointing to moderate profitability for shareholders.

Cash Flow

Boston Beer's cash flow is strong, with a free cash flow growth rate of 28.6% in TTM, highlighting effective cash management. The operating cash flow to net income ratio is 3.6, and the free cash flow to net income ratio is 2.8, both indicating excellent cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	2.11B	2.01B	2.01B	2.09B	1.25B	995.65M
Gross Profit	952.71M	893.73M	852.37M	861.99M	614.17M	512.24M
EBITDA	247.56M	245.78M	209.96M	242.67M	202.09M	168.50M
Net Income	79.60M	59.70M	76.25M	67.26M	110.04M	92.66M
Balance Sheet
Total Assets	1.27B	1.25B	1.43B	1.42B	1.05B	639.85M
Cash, Cash Equivalents and Short-Term Investments	212.43M	211.82M	298.49M	180.56M	36.67M	108.40M
Total Debt	43.86M	35.94M	45.27M	54.14M	59.11M	0.00
Total Liabilities	355.87M	333.83M	352.06M	352.22M	318.42M	179.53M
Stockholders Equity	912.34M	916.19M	1.08B	1.07B	735.64M	460.32M
Cash Flow
Free Cash Flow	221.87M	172.62M	201.06M	109.36M	85.01M	107.94M
Operating Cash Flow	286.21M	248.89M	265.15M	199.94M	178.24M	163.45M
Investing Cash Flow	-64.30M	-96.25M	-62.38M	-88.51M	-258.83M	-55.34M
Financing Cash Flow	-228.76M	-239.31M	-84.84M	2.80M	8.86M	-65.34M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 219.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Negative. The current price of 219.28 is below the 20-day moving average (MA) of 219.76, below the 50-day MA of 219.69, and below the 200-day MA of 229.98, indicating a bearish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	76 Outperform	$34.05B	12.87	15.08%	2.15%	-0.79%	-10.83%
CCU	75 Outperform	$2.15B	13.58	10.15%	3.93%	13.92%	32.69%
BUD	73 Outperform	$118.43B	16.55	8.97%	1.77%	-2.06%	21.03%
SAM	71 Outperform	$2.39B	30.88	8.15%	―	2.46%	-7.28%
TAP	66 Neutral	$9.12B	9.05	7.79%	4.02%	-5.48%	-6.99%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STZ	57 Neutral	$24.74B	20.63	15.91%	2.87%	-5.57%	119.49%

Boston Beer Corporate Events

Boston Beer Grants Stock Award to CFO Amid Transition

On August 11, 2025, Boston Beer Company’s Board of Directors granted a restricted stock award valued at approximately $1.2 million to Treasurer and CFO Diego Reynoso, aimed at retention amid a CEO transition. Additionally, the company initiated a 10b5-1 plan to repurchase up to $50 million of its Class A Common Stock between September 29, 2025, and December 26, 2025, reflecting strategic financial management.

The most recent analyst rating on (SAM) stock is a Hold with a $305.00 price target. To see the full list of analyst forecasts on Boston Beer stock, see the SAM Stock Forecast page.