MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
NYSE:TAP - New York Stock Exchange, Inc. - US60871R2094 - Common Stock - Currency: USD
Taking everything into account, TAP scores 4 out of 10 in our fundamental rating. TAP was compared to 31 industry peers in the Beverages industry. While TAP is still in line with the averages on profitability rating, there are concerns on its financial health. TAP has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
TAP had positive earnings in the past year.
TAP had a positive operating cash flow in the past year.
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
The Return On Assets of TAP (4.31%) is comparable to the rest of the industry.
With a Return On Equity value of 8.57%, TAP is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.29%, TAP is doing worse than 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TAP is significantly below the industry average of 13.34%.
The 3 year average ROIC (5.06%) for TAP is below the current ROIC(6.29%), indicating increased profibility in the last year.
| 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
The Profit Margin of TAP (9.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TAP has grown nicely.
TAP has a Operating Margin (16.23%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TAP has grown nicely.
TAP has a worse Gross Margin (38.99%) than 78.57% of its industry peers.
TAP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAP is destroying value.
The number of shares outstanding for TAP has been reduced compared to 1 year ago.
Compared to 5 years ago, TAP has less shares outstanding
TAP has about the same debt/assets ratio as last year.
2.2 Solvency
TAP has an Altman-Z score of 1.67. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.67, TAP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
TAP has a debt to FCF ratio of 4.97. This is a neutral value as TAP would need 4.97 years to pay back of all of its debts.
The Debt to FCF ratio of TAP (4.97) is better than 71.43% of its industry peers.
TAP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
TAP has a better Debt to Equity ratio (0.47) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.91
WACC6.92%
2.3 Liquidity
TAP has a Current Ratio of 0.94. 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 Current ratio of 0.94. This is in the lower half of the industry: TAP underperforms 67.86% of its industry peers.
TAP has a Quick Ratio of 0.94. This is a bad value and indicates that TAP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TAP (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.
Measured over the past 5 years, TAP shows a small growth in Earnings Per Share. The EPS has been growing by 5.63% on average per year.
Looking at the last year, TAP shows a decrease in Revenue. The Revenue has decreased by -0.64% in the last year.
TAP 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
The Earnings Per Share is expected to grow by 2.96% 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 1.10% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.11, which indicates a very decent valuation of TAP.
92.86% of the companies in the same industry are more expensive than TAP, based on the Price/Earnings ratio.
TAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
TAP is valuated reasonably with a Price/Forward Earnings ratio of 9.43.
Based on the Price/Forward Earnings ratio, TAP is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TAP to the average of the S&P500 Index (22.68), we can say TAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 96.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
TAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.41
PEG (5Y)1.8
EPS Next 2Y6.38%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, TAP has a reasonable but not impressive dividend return.
TAP's Dividend Yield is a higher than the industry average which is at 3.28.
TAP's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of TAP decreases each year by -2.03%.
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)-2.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
32.89% of the earnings are spent on dividend by TAP. This is a low number and sustainable payout ratio.
DP32.89%
EPS Next 2Y6.38%
EPS Next 3Y5.55%
60.33
-0.07 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change-0.76%
Ins Owners0.63%
Ins Owner Change-0.14%
Market Cap11.83B
Analysts64
Price Target66.74 (10.62%)
Short Float %6.06%
Short Ratio5.57
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)-0.53%
PT rev (3m)4.49%
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 | 10.11 | ||
| Fwd PE | 9.43 | ||
| P/S | 1.02 | ||
| P/FCF | 9.57 | ||
| P/OCF | 6.19 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)5.97
EY9.9%
EPS(NY)6.4
Fwd EY10.61%
FCF(TTM)6.3
FCFY10.45%
OCF(TTM)9.74
OCFY16.14%
SpS59.28
BVpS66.75
TBVpS-23.89
PEG (NY)1.41
PEG (5Y)1.8
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 | 1.67 |
F-Score8
WACC6.92%
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%