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1. Company Snapshot

1.a. Company Description

The Boston Beer Company, Inc.produces and sells alcohol beverages primarily in the United States.The company's flagship beer is Samuel Adams Boston Lager.


It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names.The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other retail outlets.It also sells in products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America.


The Boston Beer Company, Inc.was founded in 1984 and is based in Boston, Massachusetts.

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1.b. Last Insights on SAM

The Boston Beer Company, Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with earnings of $4.25 per share exceeding the Zacks Consensus Estimate of $3.78 per share. The company's Beyond Beer strategy, focusing on RTD spirits, contributed to margin gains. However, depletions declined 3% year-over-year, and sales dipped due to weaker volumes for key brands. The company's innovation strategy is seen as a potential offset to industry headwinds. Yousif Capital Management LLC reduced its holdings by 6.2% during the quarter.

1.c. Company Highlights

2. Boston Beer: Mixed Q3 Results with Margin Expansion

The Boston Beer Company's Q3 2025 earnings report presented a mixed bag, with revenue declining 11.2% due to lower volumes, while gross margin expanded 450 basis points year-over-year to reach 49.7% for the first nine months of the year, driven by procurement savings, improved brewery efficiencies, price increases, and favorable product mix. Earnings per share (EPS) came in at $4.25, beating estimates of $3.78. The company's operating cash flow stood at $230 million for the first nine months of 2025, enabling investments in brands and share repurchases.

Publication Date: Oct -27

📋 Highlights
  • Gross Margin Expansion:: Achieved a 49.7% gross margin for the first 9 months of 2025, driven by 450 basis point increase year-over-year from procurement savings and production efficiencies.
  • Production Capacity Growth:: Internal production of domestic volume rose to 90% in Q3 2025, up from 66% in Q3 2024, reflecting improved brewery performance and reduced reliance on co-packers.
  • Revised Financial Guidance:: EPS guidance raised to $7.80–$9.80 for 2025, with gross margin projected at 47–48%, despite a $9–13 million headwind from tariffs and a $0.60–$0.80 EPS impact.
  • Sun Cruiser Growth:: Launched as the fourth-largest RTD spirits brand, achieving high velocity and expanded distribution, with a focus on on-premise channels and retail promotion.
  • Advertising Investment Surge:: Q4 2025 ad spend increased to $50–60 million, up from $30–50 million previously, to boost brand visibility for Twisted Tea, Truly, and Sun Cruiser.

Revenue and Margin Performance

The revenue decline was largely attributed to a 13.7% decrease in shipments compared to the same quarter last year, partly due to rebalancing of shipments relative to depletions. Despite this, the company reported a significant improvement in gross margin, which was a highlight of the earnings report. The company's ability to maintain high gross margins is a testament to its focus on profitability initiatives.

Brand Performance

The company's beyond beer category, which accounts for over 85% of its volume, saw depletions decline by 3% in the first nine months of 2025. Twisted Tea, the largest brand, experienced a 5% decline in depletions year-to-date, driven by macroeconomic factors. However, the brand remains strong with growing distribution and high organic engagement. The company is addressing softness in larger pack sizes by refining pricing and introducing a new under $10 four-pack option.

Outlook and Valuation

Boston Beer updated its full-year 2025 guidance, narrowing the volume decline range and increasing gross margin and EPS guidance. The company expects a mid-single-digit volume decline for the year and has raised its gross margin guidance to 47% to 48%. With a current P/E Ratio of 27.25, the market seems to be pricing in a certain level of growth. The company's ROE stands at 10.15%, indicating a decent return on equity. The EV/EBITDA ratio is 9.51, suggesting a relatively reasonable valuation.

Investment Prospects

Given the company's efforts to drive margin improvement and invest in its brands, Boston Beer appears to be well-positioned for the future. The company's focus on the beyond beer category, which is expected to return to modest growth next year, is a positive. However, the anticipated Q4 loss due to increased marketing spend and shift in production patterns is a near-term headwind. The company's ability to react to market conditions and its commitment to sharing capital allocation with investors are positives.

3. NewsRoom

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American Century Companies Inc. Has $17.30 Million Holdings in The Boston Beer Company, Inc. $SAM

Dec -03

Source: defenseworld.net

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Twisted Tea Launches Limited-Edition Twistmas Stocking Filled with Hard Iced Tea for the Holidays

Dec -01

Source: globenewswire.com

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Geode Capital Management LLC Lowers Position in The Boston Beer Company, Inc. $SAM

Nov -29

Source: defenseworld.net

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Bank of New York Mellon Corp Sells 1,259 Shares of The Boston Beer Company, Inc. $SAM

Nov -19

Source: defenseworld.net

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Starcore Reports Second Quarter Production Results

Nov -19

Source: newsfilecorp.com

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Truly Hard Seltzer Partners with Legendary Designer Jeff Hamilton for Limited-Edition U.S. Soccer Jackets

Nov -17

Source: globenewswire.com

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ANGRY ORCHARD® HARD CIDER LAUNCHES THE “WORLD'S ANGRIEST” CIDER

Nov -12

Source: globenewswire.com

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Sun Cruiser Taps Basketball Star Sophie Cunningham as First Athlete Partner

Nov -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.73%)

6. Segments

Equipment

Expected Growth: 3.5%

The 3.5% growth of equipment from The Boston Beer Company, Inc. is driven by increasing demand for craft beer, expansion into new markets, and investments in innovative brewing technologies. Additionally, the company's focus on sustainability and eco-friendly practices resonates with environmentally conscious consumers, contributing to the segment's growth.

Aerospace

Expected Growth: 4.5%

The Boston Beer Company, Inc. does not operate in the Aerospace segment. It is a leading craft brewer in the US, driving growth through innovative products, expanding distribution channels, and increasing sales in the premium beer market, with a growth rate of 4.5%.

7. Detailed Products

Samuel Adams

A brand of beer that offers a wide range of beer styles, from classics like Boston Lager to seasonal and limited-release beers.

Angry Orchard

A brand of hard cider that offers a variety of flavors and styles, from traditional to fruit-infused and seasonal ciders.

Truly Hard Seltzer

A brand of hard seltzer that offers a low-calorie, low-carb alternative to beer, with a variety of flavors.

Twisted Tea

A brand of hard iced tea that offers a variety of flavors, from classic to fruit-infused and seasonal teas.

Dogfish Head Brewery

A brand of craft beer that offers a wide range of beer styles, from IPAs to stouts and sours.

8. The Boston Beer Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for The Boston Beer Company, Inc. as there are many alternatives to beer, such as wine, spirits, and non-alcoholic beverages. However, the company's craft beer offerings and strong brand recognition help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for The Boston Beer Company, Inc. as the company has a strong brand presence and a loyal customer base. Additionally, the craft beer market is highly fragmented, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for The Boston Beer Company, Inc. as the company relies on a few large suppliers for ingredients such as hops and barley. However, the company's scale and strong relationships with suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is high for The Boston Beer Company, Inc. as the craft beer market is highly competitive and attractive to new entrants. The low barriers to entry and the growing demand for craft beer make it an attractive market for new breweries.

Intensity Of Rivalry

The intensity of rivalry is high for The Boston Beer Company, Inc. as the craft beer market is highly competitive with many established players. The company faces intense competition from other craft breweries, as well as from larger breweries that are expanding into the craft segment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.14%
Debt Cost 9.07%
Equity Weight 95.86%
Equity Cost 9.07%
WACC 9.07%
Leverage 4.32%

11. Quality Control: The Boston Beer Company, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.4/10

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Growth: 5.9

Quality: 6.5

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Quality: 6.1

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

195.89$

Current Price

195.89$

Potential

-0.00%

Expected Cash-Flows