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TAP

Molson Coors Beverage (TAP) Shares Drop 3.1%

2020 2021 2022 2023 2024 2025
Revenue (M) $11,724 $12,450 $12,808 $13,885 $13,734 $13,040
Gross Margins 32% 33% 28% 31% 33% 33%
Net Margins -8% 8% -1% 7% 8% -16%
Net Income (M) -$949 $1,006 -$175 $949 $1,122 -$2,140
Net Interest Expense (M) $275 $260 $251 $234 $295 $256
Depreciation & Amort. (M) $702 $568 $477 $476 $553 $505
Diluted Shares (M) 217 218 217 217 210 199
Earnings Per Share -$4.38 $4.62 -$0.81 $4.37 $5.35 -$10.75
EPS Growth n/a 205.48% -117.53% 639.51% 22.43% -300.93%
Avg. Price $39.46 $47.14 $50.31 $61.21 $57.1 $42.53
P/E Ratio -9.01 10.16 -62.11 13.94 10.61 -3.96
Free Cash Flow (M) $1,121 $1,051 $841 $1,408 $1,236 $1,068
CAPEX (M) $575 $523 $661 $672 $674 $717
EV / EBITDA 58.01 8.53 26.11 9.74 7.22 -8.73
Total Debt (M) $9,234 $7,670 $6,938 $7,114 $6,158 $8,694
Net Debt / EBITDA 28.88 3.48 9.99 3.26 2.25 -4.26
Current Ratio 0.62 0.77 0.78 0.7 0.94 0.55

Molson Coors Beverage Company, a leading global brewer with a diverse portfolio of iconic and beloved brands, appears to be fairly valued based on its financial performance and market position. The company has experienced declining earnings per share over the past six years, with an annualized growth rate of -16.1%. The operating margins of Molson Coors Beverage stand at -17.9%, which is below the sector average, but with a modest growth rate of 2.5%. Additionally, the company's annual revenues are $13.04 billion, with a yearly growth rate of 1.5%.

Molson Coors Beverage has been making significant capital expenditures, with a growth rate of 5.5%, indicating substantial reinvestment of profits into the business. The company has a history of consistent dividends over the last 17 years, offering a current yield of 4.4%. Furthermore, its Long Term Debt/Equity ratio of 0.61 indicates healthy debt levels, and the Price to Book Ratio of 0.77 is notably low compared to the industry average.

However, there are some concerns. The company's current ratio of 0.55 indicates that its current assets of $2.94 billion are insufficient to cover its current liabilities of $5.31 billion, which could raise liquidity issues. Moreover, the P/E ratio is not meaningful due to negative trailing twelve-month earnings per share, but the forward P/E ratio of 8.2 based on the company's expected positive earnings of $5.01 shows promise. Additionally, Molson Coors Beverage has generated a decent average free cash flow of $1.12 billion over the last 5 years, with a compounded average growth rate of -0.3%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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