Boston Beer: Let The Growth Story Continue

Bill Maurer profile picture
Bill Maurer
33.75K Followers

Summary

  • Boston Beer is a tremendous growth story.
  • Revenues should top $1 billion in 2015.
  • Company offers more growth than established industry peers.
  • Valuation leaves room for considerable upside.
  • Recent pullback makes stock look attractive.

In my time writing for Seeking Alpha, one of the best names I have seen is the Boston Beer Company (NYSE:SAM). The craft brewer, known most for the Samuel Adams line, traded for just over $100 when I looked at the name back in late 2011. With revenues and earnings soaring, the stock hit a high of $265 late last year. Recently, the stock has pulled back a bit, and that leads to an interesting opportunity for investors. Today, I'll examine the continued growth story of Boston Beer, and how investors could be nicely rewarded.

Continued strong growth:

When looking at Boston Beer, you have to like the growth history of this company. In the table below, I've detailed revenue and EPS growth from 2011 to 2013, along with current analyst estimates for this year and next. You can view all past results here. Dollar values for revenues are in thousands. The growth numbers below are as-is, and are not adjusted for the extra week in the 2011 period.

*53-week period.

**Current analyst estimates.

When you think of the Boston Beer Company, the first thing you probably think of is the Samuel Adams beer line. This year, the company is celebrating the 30th anniversary of Boston Lager, the company's flagship product. However, this company is more than just the Sam Adams line. Have you heard of Twisted Tea or Angry Orchard seen in the picture below? Those malt beverages and hard ciders are part of this company, and right now are providing a solid amount of growth.

(Source: Twisted Tea site and Angry Orchard site)

Q1 is the lightest sales and earnings quarter of the year, but it probably will end up being the biggest growth quarter in 2014. In the 10-Q filing, the company reported 835,000 barrels in shipment

This article was written by

Bill Maurer profile picture
33.75K Followers
I am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. I have been active in the markets for several years, and am primarily focused on long/short equities. I hold a Bachelor of Science Degree from Lehigh University, where I double majored in Finance and Accounting, with a minor in History. My major track focused on Investments and Financial Analysis. While at Lehigh, I was the Head Portfolio Manager of the Investment Management Group, a student group that manages three portfolios, one long/short and two long only. I have had two internships, one a summer internship at a large bank, and another helping to manage the Lehigh University Endowment for nearly a year. Disclaimer: Bill reminds investors to always do their own due diligence on any investment, and to consult their own financial adviser or representative when necessary. Any material provided is intended as general information only, and should not be considered or relied upon as a formal investment recommendation.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.