MOLSON COORS BEVERAGE CO - B (TAP) Stock Fundamental Analysis
NYSE:TAP - New York Stock Exchange, Inc. - US60871R2094 - Common Stock - Currency: USD
TAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While TAP is still in line with the averages on profitability rating, there are concerns on its financial health. TAP is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TAP was profitable.
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
The Return On Assets of TAP (3.99%) is comparable to the rest of the industry.
TAP has a Return On Equity (7.91%) which is comparable to the rest of the industry.
TAP has a worse Return On Invested Capital (5.65%) than 63.64% of its industry peers.
TAP had an Average Return On Invested Capital over the past 3 years of 5.01%. This is significantly below the industry average of 11.37%.
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
The Profit Margin of TAP (9.14%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of TAP has grown nicely.
TAP has a better Operating Margin (15.04%) than 63.64% of its industry peers.
In the last couple of years the Operating Margin of TAP has grown nicely.
TAP has a worse Gross Margin (39.00%) than 69.70% of its industry peers.
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
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
Compared to 5 years ago, TAP has less shares outstanding
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 1.55. This is a bad value and indicates that TAP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.55, TAP is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
The Debt to FCF ratio of TAP is 5.68, which is a neutral value as it means it would take TAP, 5.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TAP (5.68) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that TAP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, TAP is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.86
WACC6.54%
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.
Looking at the Current ratio, with a value of 0.89, TAP is doing worse than 69.70% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that TAP may have some problems paying its short term obligations.
TAP has a Quick ratio of 0.59. This is in the lower half of the industry: TAP underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for TAP have decreased by -5.48% in the last year.
The Earnings Per Share has been growing slightly by 5.63% on average over the past years.
TAP shows a decrease in Revenue. In the last year, the revenue decreased by -5.17%.
The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)-5.48%
EPS 3Y12.89%
EPS 5Y5.63%
EPS Q2Q%-47.37%
Revenue 1Y (TTM)-5.17%
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 4.73% yearly.
TAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.83% yearly.
EPS Next Y1.65%
EPS Next 2Y3.9%
EPS Next 3Y4.48%
EPS Next 5Y4.73%
Revenue Next Year-1.15%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.25%
Revenue Next 5Y0.83%
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.
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
With a Price/Earnings ratio of 9.16, the valuation of TAP can be described as very reasonable.
Based on the Price/Earnings ratio, TAP is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of TAP to the average of the S&P500 Index (26.31), we can say TAP is valued rather cheaply.
The Price/Forward Earnings ratio is 7.85, which indicates a rather cheap valuation of TAP.
Based on the Price/Forward Earnings ratio, TAP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. TAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAP is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TAP is valued cheaper than 96.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 6.33 |
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)5.55
PEG (5Y)1.63
EPS Next 2Y3.9%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
TAP has a Yearly Dividend Yield of 3.63%. 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 3.02. TAP pays more dividend than 81.82% of the companies in the same industry.
TAP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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 2Y3.9%
EPS Next 3Y4.48%
50.59
-0.93 (-1.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners88.58%
Inst Owner Change1.49%
Ins Owners0.64%
Ins Owner Change11.29%
Market Cap9.74B
Analysts68.15
Price Target63.72 (25.95%)
Short Float %7.33%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)-6.72%
PT rev (3m)-5.21%
EPS NQ rev (1m)-6.68%
EPS NQ rev (3m)-7.22%
EPS NY rev (1m)-5.03%
EPS NY rev (3m)-5.17%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 7.85 | ||
| P/S | 0.86 | ||
| P/FCF | 8.87 | ||
| P/OCF | 5.43 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.33 |
EPS(TTM)5.52
EY10.91%
EPS(NY)6.44
Fwd EY12.74%
FCF(TTM)5.7
FCFY11.27%
OCF(TTM)9.32
OCFY18.43%
SpS58.9
BVpS68.02
TBVpS-24.4
PEG (NY)5.55
PEG (5Y)1.63
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 | 1.55 |
F-Score6
WACC6.54%
ROIC/WACC0.86
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 5Y4.73%
Revenue 1Y (TTM)-5.17%
Revenue growth 3Y4.19%
Revenue growth 5Y1.91%
Sales Q2Q%-11.26%
Revenue Next Year-1.15%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.25%
Revenue Next 5Y0.83%
EBIT growth 1Y-2.15%
EBIT growth 3Y6.6%
EBIT growth 5Y4.27%
EBIT Next Year38.41%
EBIT Next 3Y12.27%
EBIT Next 5Y6.01%
FCF growth 1Y7%
FCF growth 3Y5.56%
FCF growth 5Y-1.05%
OCF growth 1Y10.43%
OCF growth 3Y6.68%
OCF growth 5Y0.14%