MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
NYSE:TAP - New York Stock Exchange, Inc. - US60871R2094 - Common Stock - Currency: USD
Overall TAP gets a fundamental rating of 5 out of 10. We evaluated TAP against 32 industry peers in the Beverages industry. TAP has only an average score on both its financial health and profitability. TAP is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TAP was profitable.
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.
TAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.31%, TAP is in line with its industry, outperforming 46.88% of the companies in the same industry.
TAP's Return On Equity of 8.57% is in line compared to the rest of the industry. TAP outperforms 46.88% of its industry peers.
TAP's Return On Invested Capital of 6.04% is on the low side compared to the rest of the industry. TAP is outperformed by 62.50% 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 11.98%.
The last Return On Invested Capital (6.04%) for TAP is above the 3 year average (5.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 8.57% | ||
| ROIC | 6.04% |
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
The Profit Margin of TAP (9.65%) is better than 65.63% of its industry peers.
TAP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.62%, TAP is in line with its industry, outperforming 59.38% of the companies in the same industry.
TAP's Operating Margin has improved in the last couple of years.
The Gross Margin of TAP (38.99%) is worse than 71.88% 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 | 15.62% | ||
| PM (TTM) | 9.65% | ||
| GM | 38.99% |
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 1.63. 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 (1.63) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 4.97, TAP is doing good in the industry, outperforming 75.00% 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's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. TAP outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.91
WACC6.64%
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 worse Current ratio (0.94) than 68.75% of its industry peers.
A Quick Ratio of 0.70 indicates that TAP may have some problems paying its short term obligations.
TAP has a Quick ratio (0.70) which 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
TAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.94%, which is quite good.
The Earnings Per Share has been growing slightly by 5.63% on average over the past years.
The Revenue has decreased by -0.64% in the past 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 6.12% 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 0.94% yearly.
EPS Next Y7.03%
EPS Next 2Y6.36%
EPS Next 3Y5.65%
EPS Next 5Y6.12%
Revenue Next Year0.21%
Revenue Next 2Y0.6%
Revenue Next 3Y0.71%
Revenue Next 5Y0.94%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 9.59, the valuation of TAP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 96.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TAP to the average of the S&P500 Index (27.75), we can say TAP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of TAP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 100.00% of the companies listed in the same industry.
TAP is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
TAP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TAP is cheaper than 93.75% of the companies in the same industry.
TAP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TAP is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 6.35 |
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)1.36
PEG (5Y)1.7
EPS Next 2Y6.36%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, TAP has a reasonable but not impressive dividend return.
TAP's Dividend Yield is rather good when compared to the industry average which is at 3.02. TAP pays more dividend than 81.25% of the companies in the same industry.
TAP's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 2Y6.36%
EPS Next 3Y5.65%
57.25
-0.28 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners88.58%
Inst Owner Change1.22%
Ins Owners0.64%
Ins Owner Change9.98%
Market Cap11.19B
Analysts67.69
Price Target68.31 (19.32%)
Short Float %6.58%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)1.61%
PT rev (3m)6.17%
EPS NQ rev (1m)-1.98%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)5.85%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.96 | ||
| P/FCF | 9.05 | ||
| P/OCF | 5.86 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.35 |
EPS(TTM)5.97
EY10.43%
EPS(NY)6.39
Fwd EY11.16%
FCF(TTM)6.33
FCFY11.05%
OCF(TTM)9.78
OCFY17.07%
SpS59.5
BVpS67
TBVpS-23.97
PEG (NY)1.36
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 8.57% | ||
| ROCE | 7.89% | ||
| ROIC | 6.04% | ||
| ROICexc | 6.31% | ||
| ROICexgc | 32.45% | ||
| OM | 15.62% | ||
| 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)5.01%
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 88.77% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 8.41 | ||
| Cash Conversion | 74.18% | ||
| Profit Quality | 110.14% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.63 |
F-Score8
WACC6.64%
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 Y7.03%
EPS Next 2Y6.36%
EPS Next 3Y5.65%
EPS Next 5Y6.12%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.98%
Revenue Next Year0.21%
Revenue Next 2Y0.6%
Revenue Next 3Y0.71%
Revenue Next 5Y0.94%
EBIT growth 1Y14.29%
EBIT growth 3Y6.6%
EBIT growth 5Y4.27%
EBIT Next Year43.48%
EBIT Next 3Y13.07%
EBIT Next 5Y5.04%
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%