MOLSON COORS BEVERAGE CO - B (TAP)

US60871R2094 - Common Stock

62.72  +0.57 (+0.92%)

After market: 62.72 0 (0%)

Fundamental Rating

4

TAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. Both the profitability and financial health of TAP have multiple concerns. TAP is not valued too expensively and it also shows a decent growth rate.



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

TAP's Return On Assets of 3.60% is on the low side compared to the rest of the industry. TAP is outperformed by 63.64% of its industry peers.
With a Return On Equity value of 7.19%, TAP is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
TAP's Return On Invested Capital of 5.55% is on the low side compared to the rest of the industry. TAP is outperformed by 69.70% of its industry peers.
TAP had an Average Return On Invested Capital over the past 3 years of 4.70%. This is significantly below the industry average of 11.82%.
The 3 year average ROIC (4.70%) for TAP is below the current ROIC(5.55%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.6%
ROE 7.19%
ROIC 5.55%
ROA(3y)2.19%
ROA(5y)0.79%
ROE(3y)4.44%
ROE(5y)1.49%
ROIC(3y)4.7%
ROIC(5y)4.58%

1.3 Margins

The Profit Margin of TAP (8.11%) is comparable to the rest of the industry.
TAP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.84%, TAP is in line with its industry, outperforming 57.58% of the companies in the same industry.
In the last couple of years the Operating Margin of TAP has grown nicely.
The Gross Margin of TAP (37.33%) is worse than 72.73% 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 RankSector Rank
OM 13.84%
PM (TTM) 8.11%
GM 37.33%
OM growth 3Y1.77%
OM growth 5Y2.52%
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAP is destroying value.
TAP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TAP has been reduced compared to 5 years ago.
TAP has a better debt/assets ratio than last year.

2.2 Solvency

TAP has an Altman-Z score of 1.56. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
TAP's Altman-Z score of 1.56 is on the low side compared to the rest of the industry. TAP is outperformed by 63.64% of its industry peers.
The Debt to FCF ratio of TAP is 4.42, which is a neutral value as it means it would take TAP, 4.42 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.42, TAP is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that TAP is not too dependend on debt financing.
TAP's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. TAP outperforms 57.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.42
Altman-Z 1.56
ROIC/WACC0.81
WACC6.87%

2.3 Liquidity

A Current Ratio of 0.70 indicates that TAP may have some problems paying its short term obligations.
TAP's Current ratio of 0.70 is on the low side compared to the rest of the industry. TAP is outperformed by 87.88% of its industry peers.
A Quick Ratio of 0.50 indicates that TAP may have some problems paying its short term obligations.
The Quick ratio of TAP (0.50) is worse than 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.5

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 32.44%, which is quite impressive.
Measured over the past 5 years, TAP shows a small growth in Earnings Per Share. The EPS has been growing by 1.50% on average per year.
The Revenue has grown by 9.36% in the past year. This is quite good.
The Revenue has been growing slightly by 1.67% on average over the past years.
EPS 1Y (TTM)32.44%
EPS 3Y11.47%
EPS 5Y1.5%
EPS growth Q2Q-8.46%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y6.62%
Revenue growth 5Y1.67%
Revenue growth Q2Q6.13%

3.2 Future

The Earnings Per Share is expected to grow by 4.63% on average over the next years.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y2.41%
EPS Next 2Y3.66%
EPS Next 3Y1.95%
EPS Next 5Y4.63%
Revenue Next Year0.67%
Revenue Next 2Y0.91%
Revenue Next 3Y0.88%
Revenue Next 5Y1.22%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.55, the valuation of TAP can be described as reasonable.
Based on the Price/Earnings ratio, TAP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
TAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.00.
Based on the Price/Forward Earnings ratio of 11.28, the valuation of TAP can be described as reasonable.
Based on the Price/Forward Earnings ratio, TAP is valued cheaper than 96.97% of the companies in the same industry.
TAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.55
Fwd PE 11.28

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaper than 93.94% 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 RankSector Rank
P/FCF 9.07
EV/EBITDA 7.82

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)4.8
PEG (5Y)7.69
EPS Next 2Y3.66%
EPS Next 3Y1.95%

6

5. Dividend

5.1 Amount

TAP has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
TAP's Dividend Yield is a higher than the industry average which is at 2.53.
TAP's Dividend Yield is comparable with the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 2.83%

5.2 History

The dividend of TAP has a limited annual growth rate of 0.09%.
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)0.09%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

TAP pays out 37.38% 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.
DP37.38%
EPS Next 2Y3.66%
EPS Next 3Y1.95%

MOLSON COORS BEVERAGE CO - B

NYSE:TAP (2/20/2024, 4:12:28 PM)

After market: 62.72 0 (0%)

62.72

+0.57 (+0.92%)

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 Cap12.77B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.83%
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)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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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 11.55
Fwd PE 11.28
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)4.8
PEG (5Y)7.69
Profitability
Industry RankSector Rank
ROA 3.6%
ROE 7.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.84%
PM (TTM) 8.11%
GM 37.33%
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 Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.7
Quick Ratio 0.5
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)
Growth
EPS 1Y (TTM)32.44%
EPS 3Y11.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.36%
Revenue growth 3Y6.62%
Revenue growth 5Y
Revenue growth 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