Molson Coors Beverage Company - Class B
Exchange: NYSESector: Consumer DefensiveIndustry: Beverages - Brewers
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Beverage Company (MCBC). MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and annual report on Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
Did you know?
TAP's revenue grew at a 0.9% CAGR over the last 6 years.
Current Price
$42.87
+0.40%GoodMoat Value
$63.01
47.0% undervaluedProfile
Valuation (TTM)
Market Cap$8.05B
P/E-3.76
EV$13.28B
P/B0.79
Shares Out187.86M
P/Sales0.72
Revenue$11.14B
EV/EBITDA—
Molson Coors Beverage Company - Class B (TAP) Stock Analysis
GoodMoat Analysis
Molson Coors is a major global brewer with a portfolio of iconic brands, but it currently presents a complex picture for value investors. While its price appears deeply undervalued relative to a $63.01 target, the company's negative profitability metrics and revenue decline raise significant quality concerns that must be resolved.
Read full analysis
Molson Coors Beverage Company is a leading global brewer with a portfolio of iconic beer brands including Coors, Molson, Miller, and Blue Moon. From a value investing perspective, the initial assessment is mixed. Applying the GoodMoat framework, the business likely possesses a moderate moat (estimated score of 5-7/14) derived from its strong brand portfolio, scale advantages in production and distribution, and deep-rooted strategic partnerships with retailers and bars. However, the company currently fails the 'Quality Gate' in the Decision Framework. Key quality indicators are weak: the company is not GAAP profitable (EPS of -$10.75, Profit Margin of -19.2%), shows negative revenue growth YoY (-2.7%), and has a negative ROE of -20.9%. These metrics conflict with the framework's requirement for predominantly 'Strong' quality ratings to proceed. On valuation, the stock shows a compelling margin of safety, trading at $41.82 against a GoodMoat target of $63.01, implying it is deeply undervervalued (>40% MoS). The high FCF yield of 14.0% and a reasonable Debt/Equity ratio of 0.62 are positive notes. For a value investor, this creates a classic 'cigar butt' versus 'wonderful company' dilemma. The price is favourable, but the underlying business quality is currently unfavourable, requiring a deep investigation into whether the negative profitability is a temporary impairment or a structural issue before any investment thesis can be formed. Analysis based on data as of 2024-05-15.
Market Cap$8.05B
Current Price$42.87
P/E Ratio-3.76
Forward P/E—
PEG Ratio0.19
EPS$-10.75
Book Value$54.46
P/B Ratio0.79
TAP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -4.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.4B
Revenue
10.6B
FY19
9.7B
FY20
10.3B
FY21
10.7B
FY22
11.7B
FY23
11.6B
FY24
11.1B
FY25
Net Income
242M
FY19
—
FY20
1.0B
FY21
—
FY22
949M
FY23
1.1B
FY24
—
FY25
TAP 52-Week Range
$41.16
$56.12
50-Day MA: $45.39200-Day MA: $46.58
Did you know?
TAP's revenue grew at a 0.9% CAGR over the last 6 years.
Molson Coors Beverage Company - Class B (TAP) Financial Summary
Molson Coors Beverage Company - Class B (TAP) is a Consumer Defensive company in the Beverages - Brewers industry, listed on NYSE. The stock currently trades at $42.87 with a market capitalization of $8.05B.
Key valuation metrics include a P/E ratio of -3.76, price-to-book ratio of 0.79, and EPS of $-10.75. The company reports a profit margin of -19.2% and return on equity of -20.9%.
TAP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $8.05B |
| P/E Ratio | -3.76 |
| EPS | $-10.75 |
| P/B Ratio | 0.79 |
| P/S Ratio | 0.72 |
| Dividend Yield | 4.67% |
| Profit Margin | -19.2% |
| Return on Equity | -20.9% |
| Debt/Equity | 0.62 |
TAP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.58B | $241.70M |
| FY20 | $9.65B | $-949.00M |
| FY21 | $10.28B | $1.01B |
| FY22 | $10.70B | $-175.30M |
| FY23 | $11.70B | $948.90M |
| FY24 | $11.63B | $1.12B |
| FY25 | $11.14B | $-2.14B |
Molson Coors Beverage Company - Class B (TAP) Valuation
Based on GoodMoat's DCF model, Molson Coors Beverage Company - Class B has a fair value estimate of $63.01. At the current price of $42.87, the stock appears 32.0% undervalued relative to our intrinsic value estimate.
TAP Quality Indicators
Molson Coors Beverage Company - Class B maintains a profit margin of -19.2% and an operating margin of -21.1%. Return on equity stands at -20.9%. The current ratio is 0.55. Debt-to-equity ratio is 0.62.
About Molson Coors Beverage Company - Class B
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Beverage Company (MCBC). MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and annual report on Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
TAP Free Cash Flow
Molson Coors Beverage Company - Class B generated $1.08B in trailing twelve-month free cash flow, representing an FCF yield of 13.45%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
TAP Shares Outstanding
Molson Coors Beverage Company - Class B has 0.19 billion shares outstanding at a share price of $42.87, giving it a market capitalization of $8.05B.
TAP Recent Insider Trades
Recent insider transactions at Molson Coors Beverage Company - Class B include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Molson Andrew Thomas | BUY | 2,000 | $93337.80 |
| Winnefeld James A Jr | BUY | 100 | $4901.00 |
| Cocks Christian P | BUY | 45 | $2123.33 |