MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
NYSE:TAP - New York Stock Exchange, Inc. - US60871R2094 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TAP. TAP was compared to 32 industry peers in the Beverages industry. There are concerns on the financial health of TAP while its profitability can be described as average. TAP has a bad growth rate and is valued cheaply.
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.
The reported net income has been mixed in the past 5 years: TAP reported negative net income in multiple years.
In the past 5 years TAP always reported a positive cash flow from operatings.
1.2 Ratios
TAP has a Return On Assets (3.99%) which is comparable to the rest of the industry.
TAP has a Return On Equity (7.91%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.65%, TAP is doing worse than 62.50% 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 11.36%.
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
TAP's Profit Margin of 9.14% is fine compared to the rest of the industry. TAP outperforms 68.75% of its industry peers.
TAP's Profit Margin has improved in the last couple of years.
The Operating Margin of TAP (15.04%) is better than 62.50% of its industry peers.
In the last couple of years the Operating Margin of TAP has grown nicely.
Looking at the Gross Margin, with a value of 39.00%, TAP is doing worse than 75.00% 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.
The number of shares outstanding for TAP has been reduced compared to 1 year ago.
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 1.53. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
TAP has a Altman-Z score (1.53) which is comparable to the rest of the industry.
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's Debt to FCF ratio of 5.68 is fine compared to the rest of the industry. TAP outperforms 68.75% of its industry peers.
TAP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, TAP perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.88
WACC6.45%
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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. TAP is outperformed by 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 -5.52%.
TAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.63% yearly.
TAP shows a decrease in Revenue. In the last year, the revenue decreased by -0.64%.
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)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.58%
3.2 Future
TAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.40% yearly.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y0.56%
EPS Next 2Y3.04%
EPS Next 3Y3.78%
EPS Next 5Y3.4%
Revenue Next Year-2.16%
Revenue Next 2Y-0.64%
Revenue Next 3Y-0.09%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.89, the valuation of TAP can be described as reasonable.
Based on the Price/Earnings ratio, TAP is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
TAP is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.92 indicates a rather cheap valuation of TAP.
100.00% of the companies in the same industry are more expensive than TAP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.36. TAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaper than 93.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TAP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)15.89
PEG (5Y)1.58
EPS Next 2Y3.04%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.87%. 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 2.79. TAP pays more dividend than 90.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TAP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
TAP pays out 35.88% of its income as dividend. This is a sustainable payout ratio.
DP35.88%
EPS Next 2Y3.04%
EPS Next 3Y3.78%
50.21
+0.99 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners90.69%
Inst Owner Change0.52%
Ins Owners0.3%
Ins Owner Change11.3%
Market Cap9.66B
Analysts66.67
Price Target60.49 (20.47%)
Short Float %7.54%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)-3.54%
PT rev (3m)-10.16%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)-9.8%
EPS NY rev (1m)-1.39%
EPS NY rev (3m)-6.05%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-3.83%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.85 | ||
| P/FCF | 8.8 | ||
| P/OCF | 5.39 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.15 |
EPS(TTM)5.65
EY11.25%
EPS(NY)6.34
Fwd EY12.63%
FCF(TTM)5.7
FCFY11.36%
OCF(TTM)9.32
OCFY18.57%
SpS58.9
BVpS68.02
TBVpS-24.4
PEG (NY)15.89
PEG (5Y)1.58
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
WACC6.45%
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 Y0.56%
EPS Next 2Y3.04%
EPS Next 3Y3.78%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-1.58%
Revenue Next Year-2.16%
Revenue Next 2Y-0.64%
Revenue Next 3Y-0.09%
Revenue Next 5Y0.63%
EBIT growth 1Y-2.15%
EBIT growth 3Y6.6%
EBIT growth 5Y4.27%
EBIT Next Year36.78%
EBIT Next 3Y11.63%
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%