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 32 industry peers in the Beverages industry. TAP has a medium profitability rating, but doesn't score so well on its financial health evaluation. TAP is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TAP was profitable.
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 3.99% is in line compared to the rest of the industry. TAP outperforms 46.88% of its industry peers.
TAP has a Return On Equity of 7.91%. This is comparable to the rest of the industry: TAP outperforms 46.88% of its industry peers.
The Return On Invested Capital of TAP (5.65%) is worse than 65.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TAP is significantly below the industry average of 11.57%.
The 3 year average ROIC (5.01%) for TAP is below the current ROIC(5.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 7.91% | ||
| ROIC | 5.65% |
ROA(3y)2.41%
ROA(5y)1.48%
ROE(3y)4.79%
ROE(5y)2.84%
ROIC(3y)5.01%
ROIC(5y)4.84%
1.3 Margins
Looking at the Profit Margin, with a value of 9.14%, TAP is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
TAP's Profit Margin has improved in the last couple of years.
TAP has a Operating Margin of 15.04%. This is in the better half of the industry: TAP outperforms 62.50% of its industry peers.
TAP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.00%, TAP is doing worse than 71.88% of the companies in the same industry.
TAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.04% | ||
| PM (TTM) | 9.14% | ||
| GM | 39% |
OM growth 3Y2.32%
OM growth 5Y2.32%
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
TAP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
TAP has about the same debt/assets ratio as last year.
2.2 Solvency
TAP has an Altman-Z score of 1.53. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TAP (1.53) is worse than 62.50% of its industry peers.
TAP has a debt to FCF ratio of 5.68. This is a neutral value as TAP would need 5.68 years to pay back of all of its debts.
TAP has a better Debt to FCF ratio (5.68) than 68.75% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that TAP is not too dependend on debt financing.
The Debt to Equity ratio of TAP (0.48) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.86
WACC6.57%
2.3 Liquidity
TAP has a Current Ratio of 0.89. 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 0.89, TAP is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
TAP has a Quick Ratio of 0.89. 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 0.59. This is in the lower half of the industry: TAP underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
TAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.48%.
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 -5.17% in the last year.
The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)-5.48%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%-47.37%
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-11.26%
3.2 Future
The Earnings Per Share is expected to grow by 3.40% on average over the next years.
TAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.63% yearly.
EPS Next Y1.98%
EPS Next 2Y3.95%
EPS Next 3Y4.42%
EPS Next 5Y3.4%
Revenue Next Year-1.22%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.24%
Revenue Next 5Y0.63%
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
A Price/Earnings ratio of 9.06 indicates a reasonable valuation of TAP.
Based on the Price/Earnings ratio, TAP is valued cheaper than 93.75% of the companies in the same industry.
TAP is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.75, the valuation of TAP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TAP is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.75 |
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 96.88% of the companies listed in the same industry.
96.88% of the companies in the same industry are more expensive than TAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TAP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.58
PEG (5Y)1.61
EPS Next 2Y3.95%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, TAP pays a better dividend. On top of this TAP pays more dividend than 87.50% of the companies listed in the same industry.
TAP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of TAP decreases each year by -2.03%.
TAP has been paying a dividend for at least 10 years, so it has a reliable track record.
TAP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.03%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
35.88% of the earnings are spent on dividend by TAP. This is a low number and sustainable payout ratio.
DP35.88%
EPS Next 2Y3.95%
EPS Next 3Y4.42%
50
+0.19 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners90.69%
Inst Owner Change-0.02%
Ins Owners0.3%
Ins Owner Change11.3%
Market Cap9.62B
Analysts66.67
Price Target63.62 (27.24%)
Short Float %7.09%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend1.77
Dividend Growth(5Y)-2.03%
DP35.88%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.87%
Min EPS beat(2)-40.05%
Max EPS beat(2)14.31%
EPS beat(4)3
Avg EPS beat(4)-1.42%
Min EPS beat(4)-40.05%
Max EPS beat(4)14.31%
EPS beat(8)7
Avg EPS beat(8)6.88%
EPS beat(12)9
Avg EPS beat(12)14.9%
EPS beat(16)12
Avg EPS beat(16)15.77%
Revenue beat(2)1
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)0.21%
Revenue beat(4)2
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)1.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)-0.27%
Revenue beat(16)9
Avg Revenue beat(16)0.07%
PT rev (1m)-6.3%
PT rev (3m)-5.53%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)-8.64%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-4.9%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.85 | ||
| P/FCF | 8.77 | ||
| P/OCF | 5.36 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)5.52
EY11.04%
EPS(NY)6.45
Fwd EY12.9%
FCF(TTM)5.7
FCFY11.41%
OCF(TTM)9.32
OCFY18.65%
SpS58.9
BVpS68.02
TBVpS-24.4
PEG (NY)4.58
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 7.91% | ||
| ROCE | 7.39% | ||
| ROIC | 5.65% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 26.48% | ||
| OM | 15.04% | ||
| PM (TTM) | 9.14% | ||
| GM | 39% | ||
| FCFM | 9.68% |
ROA(3y)2.41%
ROA(5y)1.48%
ROE(3y)4.79%
ROE(5y)2.84%
ROIC(3y)5.01%
ROIC(5y)4.84%
ROICexc(3y)5.21%
ROICexc(5y)5.01%
ROICexgc(3y)29.37%
ROICexgc(5y)30.38%
ROCE(3y)6.54%
ROCE(5y)6.31%
ROICexcg growth 3Y3.49%
ROICexcg growth 5Y-0.7%
ROICexc growth 3Y8.65%
ROICexc growth 5Y6.6%
OM growth 3Y2.32%
OM growth 5Y2.32%
PM growth 3Y-0.44%
PM growth 5Y33.37%
GM growth 3Y-0.37%
GM growth 5Y-0.37%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 90.4% | ||
| Cap/Sales | 6.15% | ||
| Interest Coverage | 7.87 | ||
| Cash Conversion | 72.48% | ||
| Profit Quality | 105.98% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.53 |
F-Score6
WACC6.57%
ROIC/WACC0.86
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)-5.48%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%-47.37%
EPS Next Y1.98%
EPS Next 2Y3.95%
EPS Next 3Y4.42%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-11.26%
Revenue Next Year-1.22%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.24%
Revenue Next 5Y0.63%
EBIT growth 1Y-2.15%
EBIT growth 3Y6.6%
EBIT growth 5Y4.27%
EBIT Next Year38.41%
EBIT Next 3Y12.27%
EBIT Next 5Y5.76%
FCF growth 1Y7%
FCF growth 3Y5.56%
FCF growth 5Y-1.05%
OCF growth 1Y10.43%
OCF growth 3Y6.68%
OCF growth 5Y0.14%