| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 85.63 | 10472 |
| Intrinsic value (DCF) | 7.30 | 801 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Big Rock Brewery Inc. (BR.TO) is a leading Canadian craft brewery specializing in the production, marketing, and distribution of premium craft beers, ciders, and ready-to-drink (RTD) beverages. Founded in 1985 and headquartered in Calgary, Alberta, the company operates through its Wholesale and Retail segments, offering a diverse portfolio of brands including Big Rock, Tree Brewing, Rock Creek Cider, and Cottage Springs. Big Rock Brewery serves a broad customer base, including provincial liquor boards, grocery chains, on-premise establishments, and direct-to-consumer channels via its website and third-party delivery services. The company also sells branded merchandise, enhancing its consumer engagement. Operating in the competitive alcoholic beverages sector, Big Rock Brewery focuses on quality, innovation, and regional market penetration, positioning itself as a key player in Canada's growing craft beer and cider industry.
Big Rock Brewery Inc. presents a mixed investment profile. The company operates in the competitive and growing craft beer and cider market, which offers potential for niche branding and premium pricing. However, financial metrics reveal challenges, including a net loss of CAD 13.47 million in the latest fiscal year, negative operating cash flow (CAD -1.49 million), and high total debt (CAD 18.9 million) relative to its market cap (CAD 26.12 million). The lack of dividends and negative EPS (-CAD 1.92) further underscore financial strain. While the craft beverage segment has growth potential, Big Rock's weak profitability and liquidity position (cash reserves of only CAD 372,000) pose significant risks. Investors should weigh the company's brand equity against its financial instability before considering exposure.
Big Rock Brewery competes in Canada's fragmented craft beer and cider market, where differentiation through branding, product innovation, and regional loyalty is critical. The company's competitive advantage lies in its diversified portfolio of well-known regional brands (e.g., Big Rock, Tree Brewing) and its dual-channel distribution strategy (Wholesale and Retail). However, its financial struggles limit its ability to scale or invest aggressively in marketing compared to larger rivals. Big Rock's regional focus in Western Canada provides a loyal customer base but also restricts national market penetration. Competitors with stronger balance sheets (e.g., Molson Coors, Labatt) benefit from economies of scale and broader distribution networks, while smaller craft brewers often outperform in local niche markets. Big Rock's reliance on third-party distributors and provincial liquor boards adds margin pressure. Without significant capital infusion or operational turnaround, sustaining competitiveness against both macro-brewers and agile craft peers remains a challenge.