MOLSON COORS BEVERAGE CO - B (TAP)

US60871R2094 - Common Stock

51.24  +0.07 (+0.14%)

After market: 51.51 +0.27 (+0.53%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TAP. TAP was compared to 33 industry peers in the Beverages industry. TAP has a bad profitability rating. Also its financial health evaluation is rather negative. TAP may be a bit undervalued, certainly considering the very reasonable score on growth Finally TAP also has an excellent dividend rating.



3

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.
In multiple years TAP reported negative net income over the last 5 years.
Each year in the past 5 years TAP had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.16%, TAP is doing worse than 60.61% of the companies in the same industry.
The Return On Equity of TAP (8.26%) is worse than 63.64% of its industry peers.
TAP's Return On Invested Capital of 5.98% is on the low side compared to the rest of the industry. TAP is outperformed by 63.64% of its industry peers.
TAP had an Average Return On Invested Capital over the past 3 years of 4.57%. This is significantly below the industry average of 12.28%.
The last Return On Invested Capital (5.98%) for TAP is above the 3 year average (4.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.16%
ROE 8.26%
ROIC 5.98%
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

TAP has a Profit Margin (9.07%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TAP has declined.
The Operating Margin of TAP (14.58%) is comparable to the rest of the industry.
TAP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 38.17%, TAP is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TAP has remained more or less at the same level.
Industry RankSector Rank
OM 14.58%
PM (TTM) 9.07%
GM 38.17%
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%

3

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
TAP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TAP has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.51, we must say that TAP is in the distress zone and has some risk of bankruptcy.
TAP has a worse Altman-Z score (1.51) than 69.70% of its industry peers.
The Debt to FCF ratio of TAP is 4.45, which is a neutral value as it means it would take TAP, 4.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.45, TAP is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
TAP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TAP (0.41) is better than 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 4.45
Altman-Z 1.51
ROIC/WACC0.92
WACC6.49%

2.3 Liquidity

TAP has a Current Ratio of 0.69. 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 0.69. This is in the lower half of the industry: TAP underperforms 75.76% of its industry peers.
TAP has a Quick Ratio of 0.69. 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 Quick ratio value of 0.47, TAP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.47

5

3. Growth

3.1 Past

TAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.25%, which is quite impressive.
TAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.50% yearly.
Looking at the last year, TAP shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
Measured over the past years, TAP shows a small growth in Revenue. The Revenue has been growing by 1.67% on average per year.
EPS 1Y (TTM)34.25%
EPS 3Y11.47%
EPS 5Y1.5%
EPS Q2Q%75.93%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y6.62%
Revenue growth 5Y1.67%
Sales Q2Q%10.66%

3.2 Future

The Earnings Per Share is expected to grow by 5.13% 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 0.69% yearly.
EPS Next Y5.4%
EPS Next 2Y4.59%
EPS Next 3Y4.41%
EPS Next 5Y5.13%
Revenue Next Year0.99%
Revenue Next 2Y0.85%
Revenue Next 3Y0.81%
Revenue Next 5Y0.69%

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 accelerating.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

TAP is valuated reasonably with a Price/Earnings ratio of 8.77.
100.00% of the companies in the same industry are more expensive than TAP, based on the Price/Earnings ratio.
TAP is valuated cheaply when we compare the Price/Earnings ratio to 29.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.63, which indicates a very decent valuation of TAP.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.65, TAP is valued rather cheaply.
Industry RankSector Rank
PE 8.77
Fwd PE 8.63

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 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAP indicates a rather cheap valuation: TAP is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.33
EV/EBITDA 6.59

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)1.62
PEG (5Y)5.84
EPS Next 2Y4.59%
EPS Next 3Y4.41%

7

5. Dividend

5.1 Amount

TAP has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
The stock price of TAP dropped by -22.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TAP's Dividend Yield is rather good when compared to the industry average which is at 2.88. TAP pays more dividend than 84.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TAP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.44%

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

TAP pays out 33.39% of its income as dividend. This is a sustainable payout ratio.
The dividend of TAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.39%
EPS Next 2Y4.59%
EPS Next 3Y4.41%

MOLSON COORS BEVERAGE CO - B

NYSE:TAP (7/12/2024, 7:04:00 PM)

After market: 51.51 +0.27 (+0.53%)

51.24

+0.07 (+0.14%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.24B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.44%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.77
Fwd PE 8.63
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)5.84
Profitability
Industry RankSector Rank
ROA 4.16%
ROE 8.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.58%
PM (TTM) 9.07%
GM 38.17%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.69
Quick Ratio 0.47
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)34.25%
EPS 3Y11.47%
EPS 5Y
EPS Q2Q%
EPS Next Y5.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.33%
Revenue growth 3Y6.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y