MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
USA - NYSE:TAP - US60871R2094 - Common Stock
47.82 USD
-0.6 (-1.24%)
47.7 USD
-0.12 (-0.25%)
We assign a fundamental rating of 4 out of 10 to TAP. TAP was compared to 32 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
In the past year TAP was profitable.
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.
Each year in the past 5 years TAP had a positive operating cash flow.
1.2 Ratios
TAP's Return On Assets of 3.87% is in line compared to the rest of the industry. TAP outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.72%, TAP is in line with its industry, outperforming 43.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.49%, TAP is in line with its industry, outperforming 40.63% 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 11.08%.
The 3 year average ROIC (5.01%) for TAP is below the current ROIC(5.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 7.72% | ||
| ROIC | 5.49% |
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
TAP's Profit Margin of 9.19% is fine compared to the rest of the industry. TAP outperforms 68.75% of its industry peers.
In the last couple of years the Profit Margin of TAP has grown nicely.
TAP has a Operating Margin of 15.00%. This is in the better half of the industry: TAP outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of TAP has grown nicely.
TAP has a worse Gross Margin (38.76%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of TAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 9.19% | ||
| GM | 38.76% |
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
Compared to 5 years ago, TAP has less shares outstanding
Compared to 1 year ago, TAP has about the same debt to assets ratio.
2.2 Solvency
TAP has an Altman-Z score of 1.48. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, TAP is in line with its industry, outperforming 40.63% of the companies in the same industry.
The Debt to FCF ratio of TAP is 6.58, which is on the high side as it means it would take TAP, 6.58 years of fcf income to pay off all of its debts.
TAP has a Debt to FCF ratio of 6.58. This is comparable to the rest of the industry: TAP outperforms 59.38% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that TAP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, TAP perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.88
WACC6.24%
2.3 Liquidity
TAP has a Current Ratio of 0.95. 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's Current ratio of 0.95 is on the low side compared to the rest of the industry. TAP is outperformed by 71.88% of its industry peers.
TAP has a Quick Ratio of 0.95. 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 (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
TAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.52%.
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.
TAP shows a decrease in Revenue. In the last year, the revenue decreased by -5.48%.
TAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.91% yearly.
EPS 1Y (TTM)-5.52%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%6.77%
Revenue 1Y (TTM)-5.48%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.58%
3.2 Future
Based on estimates for the next years, TAP will show a small growth in Earnings Per Share. The EPS will grow by 1.89% on average per year.
The Revenue is expected to grow by 0.28% on average over the next years.
EPS Next Y-7.47%
EPS Next 2Y-1.79%
EPS Next 3Y0.38%
EPS Next 5Y1.89%
Revenue Next Year-2.84%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.47%
Revenue Next 5Y0.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 8.46, which indicates a very decent valuation of TAP.
93.75% of the companies in the same industry are more expensive than TAP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TAP to the average of the S&P500 Index (27.27), we can say TAP is valued rather cheaply.
TAP is valuated reasonably with a Price/Forward Earnings ratio of 8.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 96.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. TAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaper than 96.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TAP is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-1.79%
EPS Next 3Y0.38%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
TAP's Dividend Yield is rather good when compared to the industry average which is at 2.84. TAP pays more dividend than 90.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TAP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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
TAP pays out 36.01% of its income as dividend. This is a sustainable payout ratio.
DP36.01%
EPS Next 2Y-1.79%
EPS Next 3Y0.38%
47.82
-0.6 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners91.39%
Inst Owner Change0.65%
Ins Owners0.3%
Ins Owner Change5.82%
Market Cap8.99B
Analysts66.67
Price Target56.26 (17.65%)
Short Float %9.56%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend1.77
Dividend Growth(5Y)-2.03%
DP36.01%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.67%
Min EPS beat(2)-40.05%
Max EPS beat(2)10.71%
EPS beat(4)3
Avg EPS beat(4)-2.04%
Min EPS beat(4)-40.05%
Max EPS beat(4)14.31%
EPS beat(8)7
Avg EPS beat(8)7.24%
EPS beat(12)10
Avg EPS beat(12)15.86%
EPS beat(16)12
Avg EPS beat(16)15.37%
Revenue beat(2)1
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)2.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)2.1%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)7
Avg Revenue beat(12)0.04%
Revenue beat(16)9
Avg Revenue beat(16)-0.04%
PT rev (1m)-7%
PT rev (3m)-11.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.03%
EPS NY rev (1m)-7.98%
EPS NY rev (3m)-8.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.3 | ||
| P/S | 0.8 | ||
| P/FCF | 9.35 | ||
| P/OCF | 5.47 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.99 |
EPS(TTM)5.65
EY11.82%
EPS(NY)5.76
Fwd EY12.04%
FCF(TTM)5.11
FCFY10.69%
OCF(TTM)8.74
OCFY18.28%
SpS60.03
BVpS71.51
TBVpS-24.19
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 7.72% | ||
| ROCE | 7.17% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 25.77% | ||
| OM | 15% | ||
| PM (TTM) | 9.19% | ||
| GM | 38.76% | ||
| FCFM | 8.52% |
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-Score4
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 88.28% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 6.75 | ||
| Cash Conversion | 66.66% | ||
| Profit Quality | 92.63% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.48 |
F-Score4
WACC6.24%
ROIC/WACC0.88
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)-5.52%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%6.77%
EPS Next Y-7.47%
EPS Next 2Y-1.79%
EPS Next 3Y0.38%
EPS Next 5Y1.89%
Revenue 1Y (TTM)-5.48%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.58%
Revenue Next Year-2.84%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.47%
Revenue Next 5Y0.28%
EBIT growth 1Y-9%
EBIT growth 3Y6.6%
EBIT growth 5Y4.27%
EBIT Next Year36.78%
EBIT Next 3Y11.63%
EBIT Next 5Y5.64%
FCF growth 1Y-14.35%
FCF growth 3Y5.56%
FCF growth 5Y-1.05%
OCF growth 1Y-4.99%
OCF growth 3Y6.68%
OCF growth 5Y0.14%