One-glance verdict
Undervalued
$636.26 our estimate vs market $169.52
Wall Street consensus: $199.83 (-68.6% lower than our fair-value estimate)
73% below our estimate, below the bear case
Fundamentals snapshot
The Boston Beer Company, Inc.
SAM · NYQ · Consumer Defensive · Beverages - Brewers
Current price
$169.52
52-week range
$158.68 - $264.46
Market cap
$1.74B
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 makes popular alcoholic drinks like Samuel Adams beer, Truly hard seltzer, and Twisted Tea. It primarily makes money by selling these products to wholesalers (companies that buy in bulk and sell to stores), who then get them into grocery stores, bars, and restaurants across the U.S. The company's success depends on its brands staying popular with drinkers who have many other choices in a crowded market.
How the company got here
In 1984, founder Jim Koch used his great-great-grandfather's beer recipe to brew the first batch of Samuel Adams Boston Lager in his kitchen. He then went bar-to-bar to get his beer on tap, helping to kick off the American craft beer movement. The company grew rapidly and went public in 1995, offering some of its first shares to its loyal drinkers through an offer on its six-packs. Over the years, it expanded beyond just beer, launching and acquiring brands in hard cider, iced tea, and hard seltzer to become one of the largest beverage alcohol companies in the U.S.
What it actually does
The Boston Beer Company makes and sells a wide variety of alcoholic drinks. You would recognize their products in grocery stores, liquor stores, and restaurants under brand names like Samuel Adams, Twisted Tea, Truly Hard Seltzer, and Angry Orchard Hard Cider. The company sells these beverages to distributors (wholesalers who handle the logistics of getting products to stores), who then sell them to the retail stores and bars where you buy them. While beer is in its name, a large and growing part of its business comes from drinks other than beer.
Twisted Tea
This is the company's brand of hard iced tea, which is a flavored malt beverage. It has become a huge and fast-growing part of the business, especially popular in the southeastern United States. Customers buy Twisted Tea for its refreshing, sweet tea flavor with a 5% alcohol content. This brand is a major focus for the company's growth and is now one of the top-selling beer brands overall.
Truly Hard Seltzer
This is a line of spiked sparkling water, or hard seltzer, that comes in many different fruit flavors. Introduced in 2016, Truly became a massive success by tapping into consumer demand for lower-calorie, refreshing alcoholic options. While the explosive growth of the hard seltzer market has slowed, Truly remains a very significant part of the company's business. It competes directly with other major seltzer brands for shelf space in retail stores.
Samuel Adams
This is the original craft beer brand that started the company, best known for its flagship Boston Lager. The Samuel Adams family of beers includes a wide variety of styles, from seasonal releases to light beers and more experimental brews. While no longer the largest part of the company's sales, the Samuel Adams brand is the foundation of its reputation for quality and innovation in the beer world.
Angry Orchard Hard Cider
This brand produces a variety of hard ciders, which are alcoholic beverages made from fermented apples. Launched in 2012, Angry Orchard quickly became the best-selling hard cider in the United States. It offers a gluten-free alternative to beer and appeals to consumers looking for different flavor profiles. This segment provides another way for the company to make money from drinkers who might not choose a beer or a seltzer.
Dogfish Head Brewery & Other Brands
In 2019, the company merged with Dogfish Head Brewery, another well-known craft brewer famous for its unique and often high-alcohol beers. This added another respected craft brand to its portfolio. The company also operates other smaller brands, sometimes referred to as its 'Beyond Beer' category, which includes new innovations like Sun Cruiser (a vodka-based canned cocktail) and partnerships for products like Hard Mountain Dew. This part of the business represents a collection of smaller bets and innovations aimed at capturing new trends.
What management is betting on now
The company's current strategy focuses heavily on growing its biggest and most successful brands, particularly Twisted Tea. They are also investing in new products like Sun Cruiser to find the next big hit in the ready-to-drink beverage market. Management is also working to improve profitability by making their supply chain (the entire process of making and delivering products) more efficient and managing costs carefully. The goal is to prove they can create popular brands beyond any single trend, like the hard seltzer boom, and achieve steady, profitable growth.
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
Fetching…
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 $636.26 vs current price $169.52
Wall Street consensus is the average analyst price target: $199.83 (-68.6% lower than our fair-value estimate).
Our most-likely fair value is $636.26 a share — about 275.3% above today's price of $169.52, 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
16.46x
P/B
2.39x
P/S
0.91x
EV/EBITDA
7.47x
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
-6.98
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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