Boston Beer Company Inc. (The) Common Stock (SAM)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $191 million in annual free cash flow (7.5% yield on market cap)
• Solid return on equity of 12.3% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.05, providing financial flexibility
• Altman Z-Score of 4.9 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($134) with negative 81% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 4.1% year-over-year signals potential demand weakness or market share loss

AI Analysis

Boston Beer Company Inc. (The) Common Stock is a small-cap consumer defensive company valued at $2.5 billion. Revenue stands at $2.0 billion, though the company is currently unprofitable. From a quality standpoint, Boston shows healthy Altman Z-Score of 4.9 and adequate 12% ROE. On valuation, the stock is reasonably priced at 24.3x earnings, with trades above its Graham Number with a negative 81% margin. Growth dynamics show revenue growing at -4.1% and profit growth of 41.9%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $191 million in annual free cash flow (7.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer