MOLSON COORS BEVERAGE CO - A (TAP.A) Stock Fundamental Analysis
NYSE:TAP.A - New York Stock Exchange, Inc. - US60871R1005 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TAP.A. TAP.A was compared to 31 industry peers in the Beverages industry. TAP.A has a medium profitability rating, but doesn't score so well on its financial health evaluation. TAP.A has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
TAP.A had positive earnings in the past year.
TAP.A had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TAP.A reported negative net income in multiple years.
In the past 5 years TAP.A always reported a positive cash flow from operatings.
1.2 Ratios
TAP.A's Return On Assets of 4.31% is on the low side compared to the rest of the industry. TAP.A is outperformed by 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 8.57%, TAP.A is doing worse than 67.86% of the companies in the same industry.
TAP.A has a Return On Invested Capital of 6.29%. This is in the lower half of the industry: TAP.A underperforms 67.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TAP.A is significantly below the industry average of 13.34%.
The last Return On Invested Capital (6.29%) for TAP.A is above the 3 year average (5.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 8.57% | ||
| ROIC | 6.29% |
ROA(3y)2.41%
ROA(5y)1.48%
ROE(3y)4.79%
ROE(5y)2.84%
ROIC(3y)5.06%
ROIC(5y)4.87%
1.3 Margins
TAP.A has a Profit Margin of 9.65%. This is comparable to the rest of the industry: TAP.A outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of TAP.A has grown nicely.
Looking at the Operating Margin, with a value of 16.23%, TAP.A is in line with its industry, outperforming 53.57% of the companies in the same industry.
TAP.A's Operating Margin has improved in the last couple of years.
TAP.A's Gross Margin of 38.99% is on the low side compared to the rest of the industry. TAP.A is outperformed by 82.14% of its industry peers.
In the last couple of years the Gross Margin of TAP.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.23% | ||
| PM (TTM) | 9.65% | ||
| GM | 38.99% |
OM growth 3Y3.13%
OM growth 5Y2.81%
PM growth 3Y-0.44%
PM growth 5Y33.37%
GM growth 3Y-0.37%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TAP.A is destroying value.
Compared to 1 year ago, TAP.A has less shares outstanding
TAP.A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TAP.A has remained at the same level compared to a year ago.
2.2 Solvency
TAP.A has an Altman-Z score of 1.68. This is a bad value and indicates that TAP.A is not financially healthy and even has some risk of bankruptcy.
TAP.A's Altman-Z score of 1.68 is on the low side compared to the rest of the industry. TAP.A is outperformed by 64.29% of its industry peers.
The Debt to FCF ratio of TAP.A is 4.97, which is a neutral value as it means it would take TAP.A, 4.97 years of fcf income to pay off all of its debts.
TAP.A has a Debt to FCF ratio of 4.97. This is in the better half of the industry: TAP.A outperforms 67.86% of its industry peers.
TAP.A has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.47, TAP.A is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.91
WACC6.9%
2.3 Liquidity
TAP.A has a Current Ratio of 0.94. This is a bad value and indicates that TAP.A is not financially healthy enough and could expect problems in meeting its short term obligations.
TAP.A has a Current ratio of 0.94. This is in the lower half of the industry: TAP.A underperforms 71.43% of its industry peers.
TAP.A has a Quick Ratio of 0.94. This is a bad value and indicates that TAP.A is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TAP.A (0.70) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.94% over the past year.
The Earnings Per Share has been growing slightly by 5.63% on average over the past years.
TAP.A shows a decrease in Revenue. In the last year, the revenue decreased by -0.64%.
TAP.A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.91% yearly.
EPS 1Y (TTM)9.94%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%9.24%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.98%
3.2 Future
TAP.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.96% yearly.
TAP.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.10% yearly.
EPS Next Y7.19%
EPS Next 2Y6.38%
EPS Next 3Y5.55%
EPS Next 5Y2.96%
Revenue Next Year0.32%
Revenue Next 2Y0.58%
Revenue Next 3Y0.8%
Revenue Next 5Y1.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.35, the valuation of TAP.A can be described as very reasonable.
89.29% of the companies in the same industry are more expensive than TAP.A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. TAP.A is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.65, the valuation of TAP.A can be described as reasonable.
Based on the Price/Forward Earnings ratio, TAP.A is valued cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TAP.A to the average of the S&P500 Index (22.68), we can say TAP.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAP.A indicates a rather cheap valuation: TAP.A is cheaper than 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAP.A indicates a rather cheap valuation: TAP.A is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
TAP.A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)1.84
EPS Next 2Y6.38%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
TAP.A has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
TAP.A's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.29, TAP.A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of TAP.A decreases each year by -2.03%.
TAP.A has been paying a dividend for over 5 years, so it has already some track record.
TAP.A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TAP.A pays out 32.89% of its income as dividend. This is a sustainable payout ratio.
DP32.89%
EPS Next 2Y6.38%
EPS Next 3Y5.55%
NYSE:TAP.A (2/14/2025, 8:07:11 PM)
61.76
+3.65 (+6.28%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change13.64%
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap12.11B
Analysts64
Price Target63.5 (2.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.77
Dividend Growth(5Y)-2.03%
DP32.89%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.58%
Min EPS beat(2)6.86%
Max EPS beat(2)14.31%
EPS beat(4)4
Avg EPS beat(4)15.4%
Min EPS beat(4)6.86%
Max EPS beat(4)27.23%
EPS beat(8)8
Avg EPS beat(8)25.41%
EPS beat(12)10
Avg EPS beat(12)22.34%
EPS beat(16)13
Avg EPS beat(16)25.15%
Revenue beat(2)1
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)0.21%
Revenue beat(4)3
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.99%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)9
Avg Revenue beat(16)0.4%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-7.57%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 9.65 | ||
| P/S | 1.04 | ||
| P/FCF | 9.8 | ||
| P/OCF | 6.34 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.53 |
EPS(TTM)5.97
EY9.67%
EPS(NY)6.4
Fwd EY10.36%
FCF(TTM)6.3
FCFY10.21%
OCF(TTM)9.74
OCFY15.77%
SpS59.28
BVpS66.75
TBVpS-23.89
PEG (NY)1.44
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 8.57% | ||
| ROCE | 8.2% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 33.88% | ||
| OM | 16.23% | ||
| PM (TTM) | 9.65% | ||
| GM | 38.99% | ||
| FCFM | 10.63% |
ROA(3y)2.41%
ROA(5y)1.48%
ROE(3y)4.79%
ROE(5y)2.84%
ROIC(3y)5.06%
ROIC(5y)4.87%
ROICexc(3y)5.26%
ROICexc(5y)5.04%
ROICexgc(3y)29.68%
ROICexgc(5y)30.57%
ROCE(3y)6.61%
ROCE(5y)6.35%
ROICexcg growth 3Y4.48%
ROICexcg growth 5Y-0.14%
ROICexc growth 3Y9.55%
ROICexc growth 5Y7.13%
OM growth 3Y3.13%
OM growth 5Y2.81%
PM growth 3Y-0.44%
PM growth 5Y33.37%
GM growth 3Y-0.37%
GM growth 5Y-0.37%
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 88.77% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 72.17% | ||
| Profit Quality | 110.14% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.68 |
F-Score8
WACC6.9%
ROIC/WACC0.91
Cap/Depr(3y)94.57%
Cap/Depr(5y)82.5%
Cap/Sales(3y)5.91%
Cap/Sales(5y)5.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.94%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%9.24%
EPS Next Y7.19%
EPS Next 2Y6.38%
EPS Next 3Y5.55%
EPS Next 5Y2.96%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.98%
Revenue Next Year0.32%
Revenue Next 2Y0.58%
Revenue Next 3Y0.8%
Revenue Next 5Y1.1%
EBIT growth 1Y18.8%
EBIT growth 3Y7.45%
EBIT growth 5Y4.77%
EBIT Next Year39.76%
EBIT Next 3Y11.96%
EBIT Next 5Y7.55%
FCF growth 1Y-12.17%
FCF growth 3Y5.56%
FCF growth 5Y-1.05%
OCF growth 1Y-8.11%
OCF growth 3Y6.68%
OCF growth 5Y0.14%