Samuel adams from Boston beer, debt free company

Accuracy score :
97%

Boston Beer Co Inc Class A  SAM

Summary (from latest annual report – 2015 and quarterly report 2016)

  • Total equity: 435 million USD
  • Market Cap is 2.1 billion USD ( last price of the stock is 164.74 USD)
  • Boston Beer Co Inc is engaged in the business of selling low alcohol beverages, the Company’s beers are primarily positioned in the Better Beer category of the beer industry, which includes craft (small, independent and traditional) brewers, domestic specialty beers and most imports
  • Equity of total company decreased from 436 million USD in 2014 to 435 million in 2016
  • Company has 51 million USD in cash on account (from latest quarterly report2016 year)
  • Total equity – cash on account = 435 million USD – 51 million USD = 384 million USD
  • In 2016 total debt is zero(In 2014 total debt was zero)
  • In latest quarterly report - total equity decreased to 435 million  USD from 436 million USD in 2014, total debt is zero in 2016)
  • Company's revenue increased in 2015 to 960 million USD from 903 million in 2014
  • Net income in 2015 was 98 million USD, Net income in 2014 was 91 million USD

Boston Beer Co Inc Class A Subsidiaries SAM

The Boston Beer Company was founded in 1984 by James "Jim" Koch and Rhonda Kallman. The initial beer offering was Samuel Adams Boston Lager, a 4.8% abv amber or Vienna lager. As of December 26, 2015, the Company employed 1,429 people. The Company’s beers are primarily positioned in the Better Beer category of the beer industry, which includes craft (small, independent and traditional) brewers, domestic specialty beers and most imports. Better Beers are determined by higher price, quality, image and taste, as compared with regular domestic beers. Samuel Adams is one of the largest brands in the Better Beer category of the United States brewing industry. The Company estimates that in 2015 the craft beer category percentage volume growth was in the mid to high teens and the Better Beer category volume growth was approximately 9%, while the total beer category volume was essentially flat. The Company believes that the Better Beer category is approximately 27% of United States beer consumption by volume.

Today, two major brewers, Anheuser-Busch InBev (“AB InBev”) and MillerCoors LLC (“MillerCoors”), comprise over 85% of all United States domestic beer production, excluding imports.

The Company’s business goal is to become the leading supplier in the Better Beer and hard cider categories by creating and offering high quality full-flavored beers and hard ciders. Most all of the Company’s sales are made to a network of approximately 350 wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). The Company sells its products predominantly in the United States, but also has markets in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America.

The Company consists of two operating segments that each produce and sell alcohol beverages:

  • The first is the Boston Beer Company operating segment comprised of the Company’s Samuel Adams®, Twisted Tea® and Angry Orchard® brands – worth 1.6 billion USD
  • The second is the A&S Brewing Collaborative operating segment which is comprised of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company – worth 500 million USD
  • In 2013 Boston Beer acquired Coney Island craft beer brand from New York for less than 5 million USD

 

Total = 2.1 billion usd

The Company made capital investments in 2015 of approximately $74.2 million. These investments were made to expand the quality, capacity, efficiency and capabilities of its breweries, both to meet the 2015 growth and the anticipated future growth. The Company is continuing to evaluate 2016 capital expenditures. Its current estimates are between $60 million and $80 million, consisting mostly of continued investments in the Company’s breweries

On February 10, 2016, the Board of Directors of the Company increased the aggregate expenditure limit for the Company’s Stock Repurchase Program by $50.0 million, thereby increasing the limit from $525.0 million to $575.0 million. As of December 26, 2015, the Company has repurchased a cumulative total of approximately 11.5 million shares of its Class A Common Stock for an aggregate purchase price of approximately $446.1 million. During the twelve months ended December 26, 2015, the Company repurchased 617,274 shares of its Class A Common Stock with average price paid per share 224.77 USD.

 

 

 

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is zero, company has 51 million USD in cash on account, ROE is around 19 %).