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Molson Coors Beverage Co Shs -B- Non-Voting TAP

Morningstar Rating
$52.40 −0.67 (1.26%)
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Company Report

No-Moat Molson Coors Faces an Uphill Battle to Expand in Premium Aisle

Molson Coors owns well-known brands, such as Miller, Coors, and Blue Moon in North America and Carling in the U.K. However, heavy exposure to secularly challenged midrange and economy beer segments has resulted in falling volume and less relevance. This is preventing the firm from maintaining brand-driven intangible assets that would underpin a durable competitive edge. Furthermore, the firm has had limited success thus far in parlaying its legacy brands into higher-end beer, which is more conducive to brand prowess. As such, we don’t believe the firm has carved out an economic moat.

Price vs Fair Value

TAP is trading at a 819% premium.
Price
$52.40
Fair Value
$54.00
Uncertainty
Medium
1-Star Price
$26.80
5-Star Price
$35.00
Economic Moat
Hppmj
Capital Allocation
Vpbflyqmg

Bulls Say, Bears Say

Bulls

Strategic initiatives to expand its exposure to the premium aisle and unearth cost savings should lead to margin improvement longer term.

Bears

High volume concentration in the secularly challenged midrange and economy beer segments does not bode well for top-line and profit growth.

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News

Trading Information

Previous Close Price
$53.07
Day Range
$52.2153.05
52-Week Range
$49.1970.90
Bid/Ask
$52.16 / $53.78
Market Cap
$11.10 Bil
Volume/Avg
1.2 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
8.97
Price/Sales
0.95
Dividend Yield (Trailing)
3.24%
Dividend Yield (Forward)
3.36%
Total Yield
5.98%

Company Profile

Molson Coors owns well-known beer brands including Miller, Coors, Blue Moon, and Carling, and ranks as the second-largest beer maker in both value and volume terms in the us, Canada, and the United Kingdom. Through licensing agreements, the firm also brews and distributes beer and hard seltzer under partner brands from Heineken, Anheuser-Busch InBev, Asahi, and Coca-Cola. The brewer uses independent distributors in the us given the three-tier distribution requirements, while using a combination of distributors and an in-house sales team in Canada and Europe. North America remains its largest market, contributing over 80% of total revenue.
Sector
Consumer Defensive
Industry
Beverages - Brewers
Stock Style Box
Mid Value
Total Number of Employees
16,500

Competitors

Valuation

Metric
TAP
STZ
SAM
Price/Earnings (Normalized)
8.9719.3029.75
Price/Book Value
0.854.373.20
Price/Sales
0.954.461.68
Price/Cash Flow
5.3614.2715.01
Price/Earnings
TAP
STZ
SAM

Financial Strength

Metric
TAP
STZ
SAM
Quick Ratio
0.380.311.32
Current Ratio
0.691.232.14
Interest Coverage
8.167.93
Quick Ratio
TAP
STZ
SAM

Profitability

Metric
TAP
STZ
SAM
Return on Assets (Normalized)
4.81%9.24%8.78%
Return on Equity (Normalized)
9.69%24.65%11.79%
Return on Invested Capital (Normalized)
7.21%12.36%10.50%
Return on Assets
TAP
STZ
SAM
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