MOLSON COORS BEVERAGE CO - B (TAP)
US60871R2094 - Common Stock
TAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Beverages industry. While TAP seems to be doing ok healthwise, there are quite some concerns on its profitability. TAP scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
TAP had positive earnings in the past year.
In the past year TAP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TAP reported negative net income in multiple years.
In the past 5 years TAP always reported a positive cash flow from operatings.
1.2 Ratios
TAP has a Return On Assets of 3.52%. This is comparable to the rest of the industry: TAP outperforms 41.94% of its industry peers.
With a Return On Equity value of 7.03%, TAP is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 5.80%, TAP is doing worse than 67.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TAP is significantly below the industry average of 13.16%.
The last Return On Invested Capital (5.80%) for TAP is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 7.03% | ||
| ROIC | 5.8% |
ROA(3y)2.19%
ROA(5y)0.79%
ROE(3y)4.44%
ROE(5y)1.49%
ROIC(3y)4.57%
ROIC(5y)4.51%
1.3 Margins
The Profit Margin of TAP (8.03%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TAP has declined.
TAP has a Operating Margin (15.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TAP has remained more or less at the same level.
The Gross Margin of TAP (38.77%) is worse than 80.65% of its industry peers.
TAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.22% | ||
| PM (TTM) | 8.03% | ||
| GM | 38.77% |
OM growth 3Y-0.51%
OM growth 5Y1.14%
PM growth 3YN/A
PM growth 5Y-4.8%
GM growth 3Y-1.47%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
TAP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TAP has less shares outstanding than it did 1 year ago.
TAP has less shares outstanding than it did 5 years ago.
TAP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that TAP is in the distress zone and has some risk of bankruptcy.
TAP's Altman-Z score of 1.62 is on the low side compared to the rest of the industry. TAP is outperformed by 61.29% of its industry peers.
The Debt to FCF ratio of TAP is 5.43, which is a neutral value as it means it would take TAP, 5.43 years of fcf income to pay off all of its debts.
TAP has a Debt to FCF ratio of 5.43. This is in the better half of the industry: TAP outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that TAP is not too dependend on debt financing.
TAP has a Debt to Equity ratio of 0.47. This is in the better half of the industry: TAP outperforms 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.43 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.85
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.99 indicates that TAP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.99, TAP is doing worse than 70.97% of the companies in the same industry.
TAP has a Quick Ratio of 0.99. This is a bad value and indicates that TAP is not financially healthy enough and could expect problems in meeting its short term obligations.
TAP has a Quick ratio of 0.74. This is comparable to the rest of the industry: TAP outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.78% over the past year.
TAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.50% yearly.
Looking at the last year, TAP shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
TAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)5.78%
EPS 3Y11.47%
EPS 5Y1.5%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y6.62%
Revenue growth 5Y1.67%
Sales Q2Q%-7.75%
3.2 Future
The Earnings Per Share is expected to grow by 5.13% on average over the next years.
Based on estimates for the next years, TAP will show a small growth in Revenue. The Revenue will grow by 0.69% on average per year.
EPS Next Y6.18%
EPS Next 2Y4.13%
EPS Next 3Y4.31%
EPS Next 5Y5.13%
Revenue Next Year-0.07%
Revenue Next 2Y0.08%
Revenue Next 3Y0.32%
Revenue Next 5Y0.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.32, the valuation of TAP can be described as very reasonable.
Based on the Price/Earnings ratio, TAP is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
TAP is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.27 indicates a reasonable valuation of TAP.
100.00% of the companies in the same industry are more expensive than TAP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 96.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)6.87
EPS Next 2Y4.13%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 2.81%.
Compared to an average industry Dividend Yield of 2.99, TAP pays a bit more dividend than its industry peers.
TAP's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of TAP has a limited annual growth rate of 0.09%.
TAP has paid a dividend for at least 10 years, which is a reliable track record.
TAP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TAP pays out 39.17% of its income as dividend. This is a sustainable payout ratio.
TAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.17%
EPS Next 2Y4.13%
EPS Next 3Y4.31%
MOLSON COORS BEVERAGE CO - B
NYSE:TAP (11/21/2024, 8:04:00 PM)
After market: 60.47 0 (0%)60.47
+0.09 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.67
PEG (5Y)6.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 7.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.22% | ||
| PM (TTM) | 8.03% | ||
| GM | 38.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.78%
EPS 3Y11.47%
EPS 5Y
EPS Q2Q%
EPS Next Y6.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.23%
Revenue growth 3Y6.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y