Molson Coors (TAP) AI Stock Analysis

• Market Cap: $9.71B
• Dividend Yield: 3.77%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.25
• Revenue Growth: -5.48%
• EPS Growth: -6.99%
• Country: US
• Employees: 16,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 2.05
• Shares Outstanding: 185,387,560
• 10 Day Avg. Volume: 1,891,674
• 30 Day Avg. Volume: 2,481,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 6.55
• 1Y Price Target: $54.63
• Price Target Upside: 11.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 66 Neutral
• Price Target: $54.00 ▲(9.91% Upside)

Molson Coors' overall stock score reflects a mix of strong profitability and undervaluation, offset by technical bearishness and challenging market conditions. The company's financial performance is sound, but negative growth trends and macroeconomic headwinds pose risks. The attractive valuation and dividend yield provide some upside potential.

Positive Factors

Strong Brand Performance

Maintaining and increasing market share for core brands indicates strong brand loyalty and competitive positioning, which supports long-term revenue stability.

Non-Alcoholic and Premium Segment Growth

Growth in non-alcoholic and premium segments aligns with changing consumer preferences, diversifying revenue streams and reducing reliance on traditional beer sales.

Financial Flexibility

Extending credit agreements improves financial stability and operational flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can indicate challenges in market expansion and product adoption, potentially impacting long-term profitability and market position.

Increased Costs

Rising input costs can erode profit margins and strain financial resources, necessitating cost management strategies to maintain profitability.

Volume Deleverage

Volume deleverage due to declining industry volumes can reduce economies of scale, impacting cost efficiency and financial performance over time.

Molson Coors Business Overview & Revenue Model

Company Description

Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, Middle East, Africa, and Asia Pacific. It offers flavored malt beverages, craft, and ready to drink beverages. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.

How the Company Makes Money

Molson Coors generates revenue primarily through the sale of its beer products, which are distributed to retailers, bars, and restaurants. The company operates under a revenue model that includes both direct sales and partnerships with distributors. Key revenue streams come from the sale of various beer brands, including premium and craft offerings, as well as non-alcoholic beverages. Additionally, the company benefits from strategic partnerships and collaborations that enhance its distribution network and market reach. Seasonal promotions, marketing campaigns, and sponsorships of major events also contribute to sales growth. The company's focus on innovation, including the introduction of new flavors and product lines, further bolsters its revenue potential.

Molson Coors Financial Statement Overview

Summary

Molson Coors demonstrates strong profitability and efficient operations, as reflected in its income statement. The balance sheet is stable with a manageable debt level, but the decline in equity and free cash flow growth are areas of concern. Overall, the company is financially sound but should focus on reversing the negative growth trends to maintain its competitive position in the alcoholic beverages industry.

Income Statement

Molson Coors shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 0.45%, which is concerning. However, the company maintains a solid gross profit margin of 38.75% and a net profit margin of 9.19%, reflecting strong profitability. The EBIT and EBITDA margins are healthy at 9.89% and 20.40%, respectively, indicating efficient operations despite the revenue decline.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.47, which is manageable. The return on equity (ROE) is 7.83%, showing moderate profitability from shareholders' investments. The equity ratio stands at 50.11%, indicating a balanced capital structure. However, the slight decline in stockholders' equity over the periods suggests a need for cautious financial management.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 12.46% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.51, and the free cash flow to net income ratio is 0.58, indicating that the company generates sufficient cash to cover its net income. However, the negative growth in free cash flow suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.28B	11.63B	11.70B	10.70B	10.28B	9.65B
Gross Profit	4.37B	4.53B	4.37B	3.66B	4.05B	3.77B
EBITDA	2.44B	2.55B	2.17B	872.90M	2.29B	552.70M
Net Income	1.04B	1.12B	948.90M	-175.30M	1.01B	-945.70M
Balance Sheet
Total Assets	26.83B	26.06B	26.38B	25.87B	27.62B	27.33B
Cash, Cash Equivalents and Short-Term Investments	613.80M	969.30M	868.90M	600.00M	637.40M	770.10M
Total Debt	6.32B	6.19B	6.27B	6.61B	7.21B	8.28B
Total Liabilities	13.03B	12.61B	12.94B	12.95B	13.95B	14.71B
Stockholders Equity	13.44B	13.09B	13.20B	12.69B	13.42B	12.37B
Cash Flow
Free Cash Flow	960.80M	1.24B	1.41B	840.60M	1.05B	1.12B
Operating Cash Flow	1.64B	1.91B	2.08B	1.50B	1.57B	1.70B
Investing Cash Flow	-766.30M	-648.00M	-841.70M	-625.10M	-509.90M	-413.60M
Financing Cash Flow	-1.93B	-1.14B	-981.40M	-889.50M	-1.17B	-1.07B

Molson Coors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAP, the sentiment is Negative. The current price of 49.13 is below the 20-day moving average (MA) of 50.28, below the 50-day MA of 49.81, and below the 200-day MA of 54.26, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAP.

Molson Coors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	75 Outperform	$36.60B	13.79	15.08%	1.98%	-0.79%	-10.83%
BUD	75 Outperform	$117.04B	16.38	8.97%	1.78%	-2.06%	21.03%
SAM	74 Outperform	$2.39B	30.92	8.15%	―	2.46%	-7.28%
CCU	71 Outperform	$2.21B	13.93	10.15%	3.84%	13.92%	32.69%
FMX	67 Neutral	$17.86B	31.84	6.88%	5.00%	-2.73%	-37.93%
TAP	66 Neutral	$9.71B	9.66	7.79%	3.77%	-5.48%	-6.99%
Sector *	62 Neutral	$20.56B	14.66	-3.18%	3.15%	1.93%	-6.58%

Molson Coors Corporate Events

Molson Coors Extends Credit Agreement with Citibank

On June 26, 2025, Molson Coors Beverage Company entered into an Extension Agreement with Citibank and other lenders to extend the maturity date of its revolving credit commitments from June 26, 2029, to June 26, 2030. This extension reflects the company’s efforts to enhance its financial flexibility and stability, potentially impacting its operational strategy and stakeholder confidence positively.