10Y annualized return is
negative
at -2.5% per year
TAP has met or exceeded earnings expectations in
most
recent quarters (9/10)
Attractive P/E Ratio
Low Price-to-Sales Ratio
Strong Gross Profit Margin
Stable Net Profit Margin
Manageable Debt Levels
Free Cash Flow Generation
💪 Strong Brand Retention
💰 Healthy Financial Performance
📈 Premiumization Strategy
🚀 Strategic Partnerships
🌍 Global Growth Opportunities
🔄 Focus on Innovation
Low Price-to-Book Ratio
High EV/EBITDA Ratio
Moderate Return on Equity
Operating Profit Margin Needs Improvement
Liquidity Concerns
Interest Coverage Ratio of Zero
⚠️ Volume Challenges
📉 Contract Brewing Impact
🔍 Market Volatility Concerns
🌧️ Competitive Landscape Challenges
Overall, Molson Coors demonstrates a solid business model with strong brand retention and healthy cash flow, although it faces challenges with volume declines and competitive pressures. Future prospects appear promising with strategic partnerships and innovation efforts, but market volatility remains a concern.
Analysis Date: February 13, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Molson Coors Beverage Company is a company that makes and sells beer and other drinks. They have a variety of products, including different types of beer, flavored drinks, and craft beverages. Founded in 1774, the company operates in many parts of the world, including the Americas and Europe. In simple terms, if you enjoy a cold beer or a tasty drink, there's a good chance it comes from Molson Coors.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$210.48
Current Market Price: $60.35
IV/P Ratio: 3.49x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
71.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TAP
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (11.19)
P/B ratio ≤ 1.5 (0.96)
Current ratio ≥ 2.0 (0.94x)
Long-term debt < Net current assets (-31.07x)
Margin of safety (71.0%)
TAP does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.51%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
38.38%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
9.65%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 38.38% indicates efficient cost management in production, allowing for a healthy profit from sales.
With a net profit margin of 9.65%, TAP demonstrates a solid ability to convert revenue into actual profit, reflecting good operational efficiency.
A return on equity of 8.51% is relatively low, indicating that the company may not be generating high returns on shareholders' equity, which could be a concern for investors.
The operating profit margin of 14.93% is decent but may not be competitive in its industry, suggesting areas for operational efficiency improvements.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.47x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.94x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A debt-to-equity ratio of 0.47 indicates that TAP maintains a balanced approach to leverage, avoiding excessive debt which can be risky.
With a free cash flow per share of 6.02, TAP shows it can generate sufficient cash beyond operating expenses, which is crucial for reinvestment and dividends.
The current ratio of 0.94 and quick ratio of 0.70 suggest potential liquidity issues, indicating that the company may struggle to cover its short-term obligations.
An interest coverage ratio of 0.0 raises serious concerns about TAP's ability to meet interest obligations, which can impact financial stability.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Molson Coors demonstrated strong retention of market share gains for its core brands, such as Coors Light and Miller Lite, retaining over 80% of combined volume share gains. This indicates a strong brand loyalty and effective marketing strategies.
The company achieved over $1.2 billion in underlying free cash flow, showcasing strong cash generation capabilities that support both reinvestment in the business and shareholder returns through dividends and share repurchases.
Molson Coors has effectively premiumized its portfolio, with above-premium products making up 27% of total net brand revenue, indicating a successful strategy to tap into higher-margin segments.
U.S. brand volume was down 3% in the fourth quarter, primarily due to the exit of low-margin contract brewing agreements and a competitive landscape, indicating potential vulnerability in maintaining volume growth.
The termination of the Pabst contract brewing agreement negatively impacted volume, contributing to a significant decline in U.S. financial volume for the year, highlighting dependency on certain contracts.
The strategic partnership with Fever-Tree for premium mixers positions Molson Coors to expand its non-alcoholic beverage portfolio, tapping into the growing demand for premium non-alc options.
Strong performance in Canada and emerging markets like Bulgaria and Romania indicates that Molson Coors has opportunities for growth outside the U.S., with plans to expand brand presence and market share.
The company is innovating with new product launches, including higher ABV beers and non-alcohol options, which align with consumer trends and preferences, suggesting potential for revenue growth.
The earnings call highlighted concerns over market volatility and changing consumer preferences, which could create uncertainty in future sales and market dynamics.
Heightened competition in key markets such as the UK and Central and Eastern Europe has led to volume challenges, indicating that Molson Coors must navigate a competitive environment carefully.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 2.00x)
Total Bought
Total value of insider purchases in recent quarters
$97619
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
TAP: No insider sale data available
Active Insiders
Number of insiders trading in recent quarters
1
Limited insider activity
Recent Trend
Change in insider trading pattern
TAP: No trend data available