MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
NYSE:TAP - New York Stock Exchange, Inc. - 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. The financial health of TAP is average, but there are quite some concerns on its profitability. TAP may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In multiple years TAP reported negative net income over the last 5 years.
TAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TAP's Return On Assets of 3.52% is in line compared to the rest of the industry. TAP outperforms 42.86% of its industry peers.
The Return On Equity of TAP (7.03%) is worse than 71.43% of its industry peers.
With a Return On Invested Capital value of 5.80%, TAP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TAP is significantly below the industry average of 13.61%.
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 in line with its industry peers.
TAP's Operating Margin has been stable in the last couple of years.
TAP's Gross Margin of 38.77% is on the low side compared to the rest of the industry. TAP is outperformed by 78.57% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TAP is destroying value.
Compared to 1 year ago, TAP has less shares outstanding
The number of shares outstanding for TAP has been reduced compared to 5 years ago.
The debt/assets ratio for TAP has been reduced compared to a year ago.
2.2 Solvency
TAP has an Altman-Z score of 1.57. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
TAP has a worse Altman-Z score (1.57) than 64.29% 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.
Looking at the Debt to FCF ratio, with a value of 5.43, TAP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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 | 5.43 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.85
WACC6.85%
2.3 Liquidity
TAP has a Current 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.
With a Current ratio value of 0.99, TAP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that TAP may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, TAP perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
TAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.78%.
Measured over the past 5 years, TAP shows a small growth in Earnings Per Share. The EPS has been growing by 1.50% on average per year.
The Revenue has been growing slightly by 1.23% in the past year.
The Revenue has been growing slightly by 1.67% on average over the past years.
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
TAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.71% yearly.
TAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y7.76%
EPS Next 2Y5.44%
EPS Next 3Y5.04%
EPS Next 5Y4.71%
Revenue Next Year-0.81%
Revenue Next 2Y-0.47%
Revenue Next 3Y-0.11%
Revenue Next 5Y0.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.51, which indicates a very decent valuation of TAP.
Based on the Price/Earnings ratio, TAP is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TAP to the average of the S&P500 Index (28.29), we can say TAP is valued rather cheaply.
The Price/Forward Earnings ratio is 9.23, which indicates a very decent valuation of TAP.
Based on the Price/Forward Earnings ratio, TAP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TAP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaply inside the industry as 89.29% 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 | 9.51 | ||
| EV/EBITDA | 6.5 |
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)1.23
PEG (5Y)6.33
EPS Next 2Y5.44%
EPS Next 3Y5.04%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.21, 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
39.17% of the earnings are spent on dividend by TAP. This is a low number and sustainable payout ratio.
The dividend of TAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.17%
EPS Next 2Y5.44%
EPS Next 3Y5.04%
MOLSON COORS BEVERAGE CO - B
NYSE:TAP (1/21/2025, 7:00:00 PM)
After market: 55.6 -0.14 (-0.25%)55.74
+0.51 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change-0.17%
Ins Owners0.63%
Ins Owner Change-0.14%
Market Cap10.93B
Analysts65.38
Price Target64.34 (15.43%)
Short Float %5.3%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.65
Dividend Growth(5Y)0.09%
DP39.17%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.03%
Min EPS beat(2)6.86%
Max EPS beat(2)13.21%
EPS beat(4)4
Avg EPS beat(4)13.06%
Min EPS beat(4)4.93%
Max EPS beat(4)27.23%
EPS beat(8)8
Avg EPS beat(8)26.14%
EPS beat(12)9
Avg EPS beat(12)20.62%
EPS beat(16)12
Avg EPS beat(16)21.23%
Revenue beat(2)1
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)1.22%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.99%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)7
Avg Revenue beat(12)0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.05%
PT rev (1m)2.6%
PT rev (3m)5.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)0%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 9.23 | ||
| P/S | 0.94 | ||
| P/FCF | 9.51 | ||
| P/OCF | 5.78 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.5 |
EPS(TTM)5.86
EY10.51%
EPS(NY)6.04
Fwd EY10.83%
FCF(TTM)5.86
FCFY10.52%
OCF(TTM)9.64
OCFY17.29%
SpS59.56
BVpS68.04
TBVpS-22.33
PEG (NY)1.23
PEG (5Y)6.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 7.03% | ||
| ROCE | 7.6% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 29.09% | ||
| OM | 15.22% | ||
| PM (TTM) | 8.03% | ||
| GM | 38.77% | ||
| FCFM | 9.84% |
ROA(3y)2.19%
ROA(5y)0.79%
ROE(3y)4.44%
ROE(5y)1.49%
ROIC(3y)4.57%
ROIC(5y)4.51%
ROICexc(3y)4.72%
ROICexc(5y)4.64%
ROICexgc(3y)28.19%
ROICexgc(5y)30.48%
ROCE(3y)5.99%
ROCE(5y)5.9%
ROICexcg growth 3Y0.34%
ROICexcg growth 5Y-2.16%
ROICexc growth 3Y8.07%
ROICexc growth 5Y5.84%
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%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.43 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 107.88% | ||
| Cap/Sales | 6.34% | ||
| Interest Coverage | 8.29 | ||
| Cash Conversion | 76.71% | ||
| Profit Quality | 122.6% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.57 |
F-Score8
WACC6.85%
ROIC/WACC0.85
Cap/Depr(3y)87.14%
Cap/Depr(5y)78.58%
Cap/Sales(3y)5.67%
Cap/Sales(5y)5.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.78%
EPS 3Y11.47%
EPS 5Y1.5%
EPS Q2Q%-6.25%
EPS Next Y7.76%
EPS Next 2Y5.44%
EPS Next 3Y5.04%
EPS Next 5Y4.71%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y6.62%
Revenue growth 5Y1.67%
Sales Q2Q%-7.75%
Revenue Next Year-0.81%
Revenue Next 2Y-0.47%
Revenue Next 3Y-0.11%
Revenue Next 5Y0.47%
EBIT growth 1Y12.01%
EBIT growth 3Y6.08%
EBIT growth 5Y2.83%
EBIT Next Year45.72%
EBIT Next 3Y14.07%
EBIT Next 5Y8.64%
FCF growth 1Y56.79%
FCF growth 3Y7.88%
FCF growth 5Y-3.47%
OCF growth 1Y32.81%
OCF growth 3Y7.03%
OCF growth 5Y-2.26%