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Wednesday, August 01, 2007

Beer Stocks: Are they Frothy?


Some interesting facts about beer:
1. It is the oldest beverage in the world.
2. It is the most popular alcoholic beverage in the world.
3. 35 billion gallons of beer are sold every year.
4. Sales of beer are four times as much as wine
5. It can contain significant amounts magnesium, selenium, potassium, phosphorus, biotin, and B vitamins.
6. The highest alcohol content beer is believed to be Dave, mad by Hair of the Dog Brewing, with 29% alcohol.

The following are a list of beer companies, all with market caps over $500 million.

Companhia de Bebidas Das Americas AMBEV (ABV) is a Sao Paulo, Brazil based company which is involved in the production, distribution, and sale of beer. They are the largest brewery in the world by market cap. They also distribute Pepsi products. The P/E is 28.9, the PEG is 2.09, and the stock pays a yield of 1%. It trades on the New York Stock Exchange.

Anheuser-Busch Companies Inc. (BUD) is a St. Louis, Missouri company which was founded in 1852 and owns the Budweiser, Michelob, Busch, and Natural brands of beer. The P/E is 19.03, the PEG is 2.03, and it pays a fairly decent yield of 2.7%. The company also owns several theme parks.

SABMiller PLC SP ADR (SBMRY.PK), although founded in South Africa in 1895, is a London based brewery which is also known as South African Breweries - Miller. Revenues for the year were up 22% for 2007 over 2006. The company has dozens of brands including Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft. It is one of the world’s largest Coca-Cola bottlers. Altria Group, Miller's former parent company, owns about 30% of the stock.

Fomento Econmico Mexicano, S.A.B de C.V (FMX) is the Monterrey, Mexico based brewery which owns the Sol, Dos Equis, Tecate, Bohemia, Kaiser Pilsen, and Bavaria Pilsen brands. The P/E is 22, the PEG is 1.06 and the yield is 1.9%. Last week, they just reported a 195 increase in net income for the second quarter. They are also the second largest Coca Cola bottler in the world. The stock trades on the NYSE.

Heineken NV ADR (HINKY.PK) is based in Amsterdam, the Netherlands, and is the fourth largest brewery in the world based on beer production. They own numerous brands of beers including Heineken and Amstel. Revenues for the latest year were up about 9.6% and net profit doubled.

Molson Coors Brewing Company (TAP) is a Montreal, Canada based company which owns the Coors Light, Coors, Coors Non-Alcoholic, Blue Moon Belgian White Ale, Blue Moon, Molson Canadian, Molson Dry, Molson Export and Grolsch brand of beers. They also distribute Amstel Light, Heineken, Murphy's, Asahi, Asahi Select, Corona, Miller Lite, Miller Genuine Draft, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. The P/E is 20, the PEG is 1.46 and the yield is 1.5%.

Quilmes Industrial SA (LQU) is a Luxembourg company founded in 1888 which brews and distributes beer in Argentina, Paraguay, Uruguay, Bolivia, and Chile. The P/E is 24.8, and earnings for the latest reported quarter were up 20.7%. The stock trades on the NYSE.

Compania Cervecerias Unidas S.A. (CU) is a Santiago, Chile based company distributes Heineken, Budweiser, Paulaner, Austral, and Kunstmann beer in Chile and Argentina. The stock has a P/E of 20.16, a PEG of 1.75, and a yield of 1.9%. The stock trades on the NYSE.

Boston Beer Co. Inc. (SAM) is a Boston based company which produces and distributes beer under the Samuel Adams brand name. The P/E is 26.8 and the PEG is 1.91. Their earnings call is scheduled for next week.

Author owns SAM.

By Fred Fuld at Stockerblog.com

1 comment:

  1. Anonymous9:51 AM

    There is hope yet, for the small-cap beverage co. Jones Soda (JSD) has proved to the market that it is possible to handle the big boys and return a substantial profit. There are other compnaies looking to grow just as much. Take a look at this report i found on here...

    Investing in Beverage Stock

    -Cheers!

    ReplyDelete