Molson Coors Beverage Co. (TAP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Boston Beer Co., Inc.

Brown-Forman Corp.

Molson Coors Beverage Co.

Constellation Brands, Inc.

Fresh Vine Wine, Inc.

Willamette Valley Vineyards, Inc.

Vintage Wine Estates, Inc.

Why is Molson Coors Beverage Co. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 2.92% of over the last 5 years

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 9.56
RAW MATERIAL COST(Y) Fallen by 1.75% (YoY)
OPERATING PROFIT MARGIN(Q) Highest at 23.33 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -26.21%, its profits have fallen by -6.7%
At the current price, the company has a high dividend yield of 382.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.21% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Molson Coors Beverage Co. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Molson Coors Beverage Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Molson Coors Beverage Co.

-26.21%

-0.47

25.79%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.58%

EBIT Growth (5y)

2.92%

EBIT to Interest (avg)

5.91

Debt to EBITDA (avg)

3.11

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.59

Tax Ratio

23.17%

Dividend Payout Ratio

32.91%

Pledged Shares

Institutional Holding

94.79%

ROCE (avg)

7.17%

ROE (avg)

7.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.91

EV to EBIT

10.59

EV to EBITDA

7.25

EV to Capital Employed

0.94

EV to Sales

1.56

PEG Ratio

Dividend Yield

382.37%

ROCE (Latest)

8.83%

ROE (Latest)

8.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 9.56

RAW MATERIAL COST(Y)

Fallen by 1.75% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 23.33 %

PRE-TAX PROFIT(Q)

Highest at USD 552.1 MM

NET PROFIT(Q)

Highest at USD 426.56 MM

EPS(Q)

Highest at USD 2.13

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,643.3 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.16 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.56 times

Here's what is working for Molson Coors Beverage Co.

Dividend per share

Highest at USD 9.56 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 23.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 552.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 552.1 MM has Grown at 47.59%

over average net sales of the previous four periods of USD 374.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 426.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 426.56 MM has Grown at 52.62%

over average net sales of the previous four periods of USD 279.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by 1.75% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Molson Coors Beverage Co.

Operating Cash Flow

Lowest at USD 1,643.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 8.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio