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 5 out of 10 in our fundamental rating. TAP was compared to 32 industry peers in the Beverages industry. TAP has an average financial health and profitability rating. 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.
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 has a Return On Assets (4.31%) which is comparable to the rest of the industry.
The Return On Equity of TAP (8.57%) is comparable to the rest of the industry.
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.
The Average Return On Invested Capital over the past 3 years for TAP is significantly below the industry average of 11.91%.
The 3 year average ROIC (5.01%) for TAP is below the current ROIC(6.04%), indicating increased profibility in the last year.
| 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
TAP's Profit Margin of 9.65% is fine compared to the rest of the industry. TAP outperforms 65.63% of its industry peers.
In the last couple of years the Profit Margin of TAP has grown nicely.
TAP has a better Operating Margin (15.62%) than 62.50% of its industry peers.
TAP's Operating Margin has improved in the last couple of years.
TAP has a worse Gross Margin (38.99%) 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.
The number of shares outstanding for TAP has been reduced compared to 1 year ago.
The number of shares outstanding for TAP has been reduced compared to 5 years ago.
The debt/assets ratio for TAP has remained at the same level compared to a year ago.
2.2 Solvency
TAP has an Altman-Z score of 1.61. 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 of 1.61. This is comparable to the rest of the industry: TAP outperforms 40.63% of its industry peers.
The Debt to FCF ratio of TAP is 4.97, which is a neutral value as it means it would take TAP, 4.97 years of fcf income to pay off all of its debts.
TAP has a better Debt to FCF ratio (4.97) than 78.13% of its industry peers.
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 | 1.61 |
ROIC/WACC0.89
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TAP may have some problems paying 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for TAP have decreased by -5.48% in the last year.
TAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.63% yearly.
Looking at the last year, TAP shows a decrease in Revenue. The Revenue has decreased by -0.64% in the last 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)-5.48%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%-47.37%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-11.26%
3.2 Future
TAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.12% yearly.
TAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.94% yearly.
EPS Next Y1.65%
EPS Next 2Y3.9%
EPS Next 3Y4.48%
EPS Next 5Y6.12%
Revenue Next Year-0.86%
Revenue Next 2Y-0.03%
Revenue Next 3Y0.33%
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
A Price/Earnings ratio of 9.84 indicates a reasonable valuation of TAP.
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 (25.91), we can say TAP is valued rather cheaply.
TAP is valuated reasonably with a Price/Forward Earnings ratio of 8.43.
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 21.85. TAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
TAP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TAP is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TAP is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 6.22 |
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)5.96
PEG (5Y)1.75
EPS Next 2Y3.9%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.34%.
Compared to an average industry Dividend Yield of 2.83, TAP pays a better dividend. On top of this TAP pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TAP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
TAP pays out 32.89% of its income as dividend. This is a sustainable payout ratio.
DP32.89%
EPS Next 2Y3.9%
EPS Next 3Y4.48%
54.31
-1.33 (-2.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners88.58%
Inst Owner Change1.38%
Ins Owners0.64%
Ins Owner Change11.44%
Market Cap10.61B
Analysts68.15
Price Target67.9 (25.02%)
Short Float %6.45%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)0.83%
PT rev (3m)6.09%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-4.45%
EPS NY rev (1m)-5.03%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.43 | ||
| P/S | 0.91 | ||
| P/FCF | 8.59 | ||
| P/OCF | 5.56 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.22 |
EPS(TTM)5.52
EY10.16%
EPS(NY)6.44
Fwd EY11.87%
FCF(TTM)6.33
FCFY11.65%
OCF(TTM)9.78
OCFY18%
SpS59.5
BVpS67
TBVpS-23.97
PEG (NY)5.96
PEG (5Y)1.75
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 | 1.61 |
F-Score8
WACC6.81%
ROIC/WACC0.89
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 Y1.65%
EPS Next 2Y3.9%
EPS Next 3Y4.48%
EPS Next 5Y6.12%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-11.26%
Revenue Next Year-0.86%
Revenue Next 2Y-0.03%
Revenue Next 3Y0.33%
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%