Home Sectors Consumer Defensive Buy or Sell: Boston Beer Company (NYSE: SAM)

Buy or Sell: Boston Beer Company (NYSE: SAM)


Boston Beer Company is part of the alcoholic beverages industry and trades as part of the consumer defensive sector. The company CEO is David A. Burwick. Boston Beer Co Inc is engaged in the business of selling low alcohol beverages in the United States. The company also markets Twisted Tea a flavored malt beverage and Angry Orchard ciders.

Previous Intraday Trading Performance:

The SAM stock showed a previous change of -3.13% with an open at 316.10 and a close of 305.76. It reached an intraday high of 317.07 and a low of 303.56.

SeekingAlpha:  Boston Beer: Dogfish Deal Is No Dog


The stock has a market cap of $3.6b with 11.7m shares outstanding, of which the float is 11.4m shares. Trading volume reached 183,772 shares compared to its average volume of 184,392 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Boston Beer Company shares returned -4.61% and in the past 30 trading days it returned 10.09%. Over three months, it changed -0.39%. In one year it has changed 17.53% and within that year its 52-week high was 353.02 and its 52-week low was 230.93. SAM stock is 32.41% above its 52 Week Low.

Our calculations show a 200 day moving average of 287.86 and a 50 day moving average of 305.39. Currently SAM stock is trading 6.22% above its 200 day moving average.

SeekingAlpha:  Boston Beer: Dogfish Deal Is No Dog


The last annual fiscal EPS for the company was reported at 7.83 that ended on 31st of December 2018, which according to the previous close, that is a PE of 39.05. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.89. The TTM EPS is 7.58, which comes to a TTM PE of 40.34. Historically, the PE high was 57.70 and the PE low was 18.90. If the stock reached its PE low, that would represent a price of 143.25, which is a decrease of -53.15%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/24/2019): 2.02
4thQtr of 2018 (Reported on 02/20/2019): 1.86
3rdQtr of 2018 (Reported on 10/25/2018): 3.21
2ndQtr of 2018 (Reported on 07/26/2018): 1.98
1stQtr of 2018 (Reported on 04/25/2018): 0.78

Base on our calculations, the intrinsic value per share is 201.17, which means it may be overvalued by -51.99%.

Indicators to Watch:

Short-interest was 1,870,444, which was 16.03% of shares outstanding. The short-interest ratio or days-to-cover ratio was 12.57. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.54.

SeekingAlpha:  Donaldson EPS misses by $0.04, misses on revenue

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 24.12%, return on assets is 17.37%, profit margin is 9.60%, price-to-sales is 3.28 and price-to-book is 7.52.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 4  :Past Performance Score
 5  :Financial Strength Score
 1  :Future Growth Score
 0  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.