Molson Coors (TAP) AI Stock Analysis

• Market Cap: $10.12B
• Dividend Yield: 3.53%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.25
• Revenue Growth: -5.48%
• EPS Growth: -6.99%
• Country: US
• Employees: 16,800
• Sector: Consumer Defensive
• Sector Strength: 59
• Industry: Beverages - Alcoholic
• EPS (TTM): 2.05
• Shares Outstanding: 185,387,560
• 10 Day Avg. Volume: 2,942,799
• 30 Day Avg. Volume: 2,552,786
• 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: 1.58
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $54.61
• Price Target Upside: 6.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: $55.00 ▲(7.17% Upside)

Molson Coors' overall stock score reflects strong profitability and a stable financial position, but is tempered by challenges in the U.S. beer market and negative cash flow trends. The stock's valuation is attractive, with a low P/E ratio and a solid dividend yield. The extension of the credit agreement is a positive corporate event, enhancing financial flexibility.

Positive Factors

Brand Performance

The Banquet brand continues to attract younger consumers and gain distribution.

Marketing Strategies

TAP plans to address share losses in Coors Light/Miller Lite through NFL & college football marketing activations.

Negative Factors

Aluminum Costs

TAP expects a ~$40-$55M Y/Y headwind in FY25 from Midwest Premium, primarily impacting 2H25 and driven by the aluminum price spike from US tariffs.

Market Competition

Increased competition in the U.S. market is affecting Molson Coors' market position and valuation.

Molson Coors Business Overview & Revenue Model

Company Description

Molson Coors Beverage Company is a leading global brewer with a diverse portfolio of brands, including Coors, Miller, and Blue Moon. Founded in 1786, the company operates in the alcoholic beverage sector, primarily focusing on the production and marketing of beer. With a significant presence in North America and Europe, Molson Coors is committed to innovation and sustainability, offering a range of products that cater to changing consumer preferences, including light beers, craft beers, and non-alcoholic options.

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	2.48B	1.75B	2.16B	1.81B	2.29B	564.00M
Net Income	1.04B	1.12B	948.90M	-186.50M	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	6.56B	7.16B	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: Neutral
• Last Price: 51.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAP, the sentiment is Neutral. The current price of 51.32 is above the 20-day moving average (MA) of 50.34, above the 50-day MA of 49.86, and below the 200-day MA of 55.32, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 73.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TAP.

Molson Coors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	78 Outperform	$2.31B	14.84	10.15%	3.66%	13.92%	32.69%
BUD	75 Outperform	$122.52B	17.09	8.97%	1.66%	-2.06%	21.03%
SAM	73 Outperform	$2.35B	31.49	8.15%	―	2.46%	-7.28%
ABEV	71 Outperform	$34.74B	13.24	15.08%	2.07%	-0.79%	-10.83%
Sector *	69 Neutral	¥221.58B	21.75	8.23%	2.14%	4.96%	1.22%
TAP	67 Neutral	$10.12B	10.07	7.79%	3.53%	-5.48%	-6.99%
STZ	60 Neutral	$29.25B	49.10	-5.05%	2.44%	-0.47%	-117.62%

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.

The most recent analyst rating on (TAP) stock is a Hold with a $62.50 price target. To see the full list of analyst forecasts on Molson Coors stock, see the TAP Stock Forecast page.

Molson Coors Stockholders Approve Incentive Plan Amendments

At the 2025 Annual Meeting held on May 14, Molson Coors stockholders approved significant amendments to the company’s Incentive Compensation Plan, increasing the share issuance limit by 5 million and extending the plan’s term to 2035. Additionally, stockholders voted on several proposals, including the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025, reflecting ongoing governance and operational adjustments.

The most recent analyst rating on (TAP) stock is a Hold with a $67.50 price target. To see the full list of analyst forecasts on Molson Coors stock, see the TAP Stock Forecast page.