Molson Coors (TAP) AI Stock Analysis

• Market Cap: $11.44B
• Dividend Yield: 3.14%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.22
• Revenue Growth: -5.17%
• EPS Growth: -0.74%
• Country: US
• Employees: 16,800
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.50
• Shares Outstanding: 189,837,540
• 10 Day Avg. Volume: 3,502,466
• 30 Day Avg. Volume: 2,611,415
• PEG Ratio: 0.48
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.41
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $64.56
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $62.00 ▲( 11.43% Upside)

Molson Coors' stock shows a stable financial performance and attractive valuation, but faces challenges from declining revenues and macroeconomic pressures as highlighted in the earnings call. Technical indicators suggest caution due to potential bearish trends.

Positive Factors

Brand Momentum

Management's conviction to deliver on its newly lowered guidance is supported by healthy momentum behind key brands like Miller Lite and Coors Light.

Market Trends

A positive from the US market is the improvement in US beer sell-out trends in March and April noted by Molson Coors.

Seasonal Sales

The peak summer selling season could be stronger than expected, potentially making the company's guidance conservative.

Negative Factors

Financial Performance

Results were worse than feared, with Q1 net sales down 11.3%, weighed by a tough macro environment and heightened competitive pressures.

Guidance Downgrade

Considering the weak Q1 results and the tough global macroeconomic environment, TAP lowered its FY25 guidance.

Market Share

Molson Coors bears the brunt of US beer market weakness, with shipments down significantly more than its competitor ABInBev.

Molson Coors Business Overview & Revenue Model

Company Description

Molson Coors Beverage Company, trading under the ticker symbol TAP, is a leading global brewer. The company operates in the brewing sector and is renowned for its diverse portfolio of beer brands, including Coors Light, Miller Lite, Molson Canadian, and Blue Moon, among others. With a presence in North America, Europe, and other international markets, Molson Coors is committed to delivering high-quality beverages and innovating within the industry to meet evolving consumer preferences.

How the Company Makes Money

Molson Coors makes money primarily through the production, marketing, and sale of beer and other alcoholic beverages. Its key revenue streams include the sale of its well-known brands across various markets, including North America and Europe. The company also engages in strategic partnerships and distribution agreements to expand its market reach and enhance its product offerings. Additionally, Molson Coors invests in marketing and brand-building efforts to maintain and grow its customer base. Revenue is further augmented by its focus on innovation and the introduction of new products that cater to changing consumer tastes and preferences.

Molson Coors Financial Statement Overview

Summary

Molson Coors shows solid profitability with a stable balance sheet and strong cash flow generation despite challenges in revenue growth. The moderate leverage ensures a stable financial foundation.

Income Statement

Molson Coors has shown a steady improvement in profitability with a gross profit margin of 39.0% and a net profit margin of 9.7% in 2024. The EBIT margin is robust at 15.1%. However, revenue slightly declined by 0.6% compared to the previous year, indicating a need to stabilize top-line growth.

Balance Sheet

The company maintains a prudent financial structure with a debt-to-equity ratio of 0.47, reflecting moderate leverage. The return on equity stands at 8.6%, which is reasonable but could be improved. The equity ratio is stable at 50.2%, indicating a balanced capital structure.

Cash Flow

The cash flow statement highlights strong free cash flow generation, despite a decline in free cash flow growth of -12.2% from the previous year. The operating cash flow to net income ratio is healthy at 1.7, indicating effective cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.63B	11.70B	10.70B	10.28B	9.65B
	Gross Profit
4.53B	4.37B	3.66B	4.05B	3.77B
	EBIT
1.75B	1.44B	1.84B	1.45B	1.37B
	EBITDA
1.75B	2.16B	1.81B	2.29B	564.00M
	Net Income Common Stockholders
1.12B	948.90M	-186.50M	1.01B	-945.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
969.30M	868.90M	600.00M	637.40M	770.10M
	Total Assets
26.06B	26.38B	25.87B	27.62B	27.33B
	Total Debt
6.19B	6.27B	6.56B	7.16B	8.28B
	Net Debt
5.22B	5.40B	5.96B	6.52B	7.51B
	Total Liabilities
12.61B	12.94B	12.95B	13.95B	14.71B
	Stockholders Equity
13.09B	13.20B	12.69B	13.42B	12.37B
Cash Flow		Free Cash Flow
1.24B	1.41B	840.60M	1.05B	1.12B
	Operating Cash Flow
1.91B	2.08B	1.50B	1.57B	1.70B
	Investing Cash Flow
-648.00M	-841.70M	-625.10M	-509.90M	-413.60M
	Financing Cash Flow
-1.14B	-981.40M	-889.50M	-1.17B	-1.07B

Molson Coors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.64
• 50DMA: Negative
• 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 Negative. The current price of 55.64 is below the 20-day moving average (MA) of 56.46, below the 50-day MA of 58.45, and below the 200-day MA of 56.74, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 is Neutral, 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
BUD	79 Outperform	$136.86B	23.45	7.31%	0.94%	0.64%	10.02%
ABEV	78 Outperform	$39.88B	15.52	15.09%	4.96%	1.25%	-13.02%
SAM	73 Outperform	$2.75B	40.20	7.36%	―	0.79%	-24.27%
CCU	72 Outperform	$2.61B	15.04	11.33%	1.96%	6.18%	61.39%
TAP	68 Neutral	$11.44B	11.38	7.90%	3.14%	-5.17%	-0.74%
Sector *	64 Neutral	$8.88B	14.67	4.78%	173.89%	3.39%	2.18%
STZ	63 Neutral	$34.34B	49.10	-0.98%	2.14%	2.47%	-105.09%

Molson Coors Corporate Events

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.

Molson Coors CEO Announces Retirement Plans

On April 12, 2025, Gavin D.K. Hattersley announced his intention to retire as President and CEO of Molson Coors Beverage Company by the end of 2025. To ensure a smooth leadership transition, the company has issued retention awards to key executives. Hattersley’s tenure saw significant growth and strategic partnerships, enhancing the company’s market position and financial health. The Board has initiated a search for a new CEO to continue building on Hattersley’s successful strategies.