Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, craft brewer The Boston Beer Company (NYSE: SAM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Boston Beer's business and see what CAPS investors are saying about the stock right now.
Boston Beer facts
| Headquarters (Founded) |
Boston (1984) |
| Market Cap |
$1.1 billion |
| Industry |
Brewers |
| Trailing-12-Month Revenue |
$455.25 million |
| Management |
CEO Martin Roper (since 2001)
CFO William Urich (since 2003)
|
| Return on Equity (Average, Past 3 Years) |
17.9% |
| Cash/Debt |
$53.2 million / $0 |
| Competitors |
Anheuser-Busch (NYSE: BUD )
Molson Coors (NYSE: TAP )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 1,171 members who have rated Boston Beer believe the stock will outperform the S&P 500 going forward. These bulls include mitleg and All-Star dvena, who is ranked in the top 15% of our community.
Just two weeks ago, CAPS member mitleg crafted a rather flavorful bull case: "It is good by all metrics. They are the craft brew leader. Strong insider presence. Excellent product. History of out performance. Fat margins. Solid ROE/ROI. No debt. It would even seem possible that one of the titans could still take them out."
Shares of Motley Fool Stock Advisor selection Boston Beer have returned an incredible 98% over the past year alone, but many in our community believe it still has plenty of room to run. Over the next five years, analysts even expect Boston Beer to grow its earnings at a faster clip (16.6%) than rival brewers Anheuser-Busch (15.6%) and Molson (8.7%), as well as other alcoholic beverage plays like Diageo (NYSE: DEO ) (9.5%), Fortune Brands (NYSE: FO ) (13.5%), and Brown-Forman (NYSE: BF-B ) (10.8%).
CAPS All-Star dvena elaborates on Boston Beer's potential for big market share gains:
Sam currently accounts for less than 1% of the US market for beer consumption. Many beer drinkers are trading up -- and have been even through the recession. They want a beer that has flavor. Sam is catering to the market that trades up. Once a beer drinker trades up from Bud, Miller, Coors, etc. -- there first stop is craft brewers or micro brews. [Boston Beer] is the most easily accessible national brand of craft beer. Shipments have been up quarter over quarter. Margins are well managed. With less than 1% of the US market-they have a lot of room to grow!
What do you think about Boston Beer, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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