MOLSON COORS BEVERAGE CO - B (TAP)

US60871R2094 - Common Stock

67.29  -0.05 (-0.07%)

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 may be in some trouble as it scores bad on both profitability and health. TAP has a correct valuation and a medium 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.
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

With a Return On Assets value of 3.60%, TAP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of TAP (7.19%) is worse than 63.64% of its industry peers.
With a Return On Invested Capital value of 5.44%, TAP is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TAP is significantly below the industry average of 12.38%.
The 3 year average ROIC (4.57%) for TAP is below the current ROIC(5.44%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.6%
ROE 7.19%
ROIC 5.44%
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

With a Profit Margin value of 8.11%, TAP perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
TAP's Profit Margin has declined in the last couple of years.
TAP has a Operating Margin (13.58%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TAP has remained more or less at the same level.
With a Gross Margin value of 37.33%, TAP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
TAP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.58%
PM (TTM) 8.11%
GM 37.33%
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

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.
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 1.60, we must say that TAP is in the distress zone and has some risk of bankruptcy.
TAP's Altman-Z score of 1.60 is on the low side compared to the rest of the industry. TAP is outperformed by 63.64% of its industry peers.
TAP has a debt to FCF ratio of 4.42. This is a neutral value as TAP would need 4.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.42, 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 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.40, TAP is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.42
Altman-Z 1.6
ROIC/WACC0.79
WACC6.91%

2.3 Liquidity

TAP has a Current Ratio of 0.70. 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 Current ratio of 0.70 is on the low side compared to the rest of the industry. TAP is outperformed by 84.85% of its industry peers.
TAP has a Quick Ratio of 0.70. This is a bad value and indicates that TAP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.50, TAP is doing worse than 72.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.5

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.44% over the past year.
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.
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)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.
Based on estimates for the next years, TAP will show a small growth in Revenue. The Revenue will grow by 1.23% on average per year.
EPS Next Y5.27%
EPS Next 2Y5.27%
EPS Next 3Y4.96%
EPS Next 5Y4.63%
Revenue Next Year1.42%
Revenue Next 2Y1.28%
Revenue Next 3Y1.17%
Revenue Next 5Y1.23%

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 12.39, the valuation of TAP can be described as correct.
Based on the Price/Earnings ratio, TAP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.42, TAP is valued rather cheaply.
The Price/Forward Earnings ratio is 11.77, which indicates a very decent valuation of TAP.
Based on the Price/Forward Earnings ratio, TAP is valued cheaper than 96.97% of the companies in the same industry.
TAP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 12.39
Fwd PE 11.77

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 90.91% 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 9.59
EV/EBITDA 8.29

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)2.35
PEG (5Y)8.25
EPS Next 2Y5.27%
EPS Next 3Y4.96%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.62%, TAP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, TAP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, TAP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.62%

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

37.38% of the earnings are spent on dividend by TAP. This is a low number and sustainable payout ratio.
TAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.38%
EPS Next 2Y5.27%
EPS Next 3Y4.96%

MOLSON COORS BEVERAGE CO - B

NYSE:TAP (3/28/2024, 10:06:07 AM)

67.29

-0.05 (-0.07%)

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 Cap13.50B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
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)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 12.39
Fwd PE 11.77
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)2.35
PEG (5Y)8.25
Profitability
Industry RankSector Rank
ROA 3.6%
ROE 7.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.58%
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 Y5.27%
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