Analyst rates BRC Inc. (BRCC:NYE) with a Buy rating and $16.25 rating

STA Research
by: STA Research
BRC Inc

Based on the BRCC stock forecast from 9 analysts, the average analyst BRCC stock price is USD 16.25 over the next 12 months. BRC Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of BRC Inc. is Bearish, which is based on 1 positive signal and 6 negative signals. At the last closing, BRCC stock price was USD 9.28. BRCC stock price has changed by -1.26% over the past week, +0.23% over the past month and +0.00% over the last year.

About BRC Inc. (BRCC:NYE)

BRC Inc. purchases, roasts, and sells coffee, coffee accessories, and branded clothing through its subsidiaries. The business also provides coffee brewing supplies, outdoor and lifestyle items, podcasts, digital and print journals, and media content. It aids first responders, veterans, and serving military personnel. The business distributes its goods through a variety of retail outlets, including convenience, grocery, drug, and mass merchandise shops; outdoor, do-it-yourself, and lifestyle stores; company-owned and franchised Black Rifle Coffee retail coffee shop locations; and online. With its headquarters in Salt Lake City, Utah, BRC Inc. was established in 2014.

 

What we like:

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to book value

BRCC stock price is trading high compared to its peer’s median on a price-to-book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Dividend Growth

BRCC stock price has shown below median dividend growth in the previous 5 years compared to its sector.

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