Attractive stocks have exceptional fundamentals. In the case of The Boston Beer Company, Inc. (NYSE:SAM), there's is a financially-healthy company with a great track record and an optimistic future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Boston Beer Company here.
Solid track record with reasonable growth potential
In the previous year, SAM has ramped up its bottom line by 14%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future.
With a debt-to-equity ratio of 7.2%, SAM’s debt level is acceptable. This means that SAM’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. SAM appears to have made good use of debt, producing operating cash levels of 4.41x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Boston Beer Company, there are three essential aspects you should look at:
- Valuation: What is SAM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SAM is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does SAM return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SAM as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.