Molson Coors (TAP) AI Stock Analysis

• Market Cap: $9.95B
• Dividend Yield: 3.84%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.24
• Revenue Growth: -5.17%
• EPS Growth: -0.74%
• Country: US
• Employees: 16,800
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.50
• Shares Outstanding: 189,837,540
• 10 Day Avg. Volume: 2,522,284
• 30 Day Avg. Volume: 2,476,990
• PEG Ratio: -1.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.87
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 1.54
• 1Y Price Target: $61.99
• Price Target Upside: 25.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 65 Neutral
• Price Target: $51.00 ▲(3.28%Upside)

Molson Coors' overall score reflects a mix of strong valuation metrics and financial stability, offset by challenging macroeconomic conditions and bearish technical indicators. The stock's undervaluation and dividend yield are key strengths, although earnings guidance and market sentiment remain cautious.

Positive Factors

Company Strategy

Encouragement is drawn from TAP’s progress on its transformation journey to premiumize and diversify its portfolio beyond beer while strengthening its core power brands.

Market Trends

Recent beer category scanner data trends have sequentially improved, showing a more modest decline despite a challenging macro/operating environment.

Shareholder Value

The Buy recommendation is based on the cash flow now becoming available to be returned to shareholders via dividends and share buybacks.

Negative Factors

Financial Performance

Molson Coors reported Q1 results that missed both analyst and consensus expectations significantly, with substantial volume declines in both the Americas and EMEA and Asia-Pacific segments.

Industry Competition

For the beer industry, Spirits are wolves, winning share of throat and now pushing more directly into beer occasions with ready to drink.

Market Conditions

The US beer industry continues to decline below historic trends, market share loss continues and valuation reflects uncertainty.

Molson Coors Business Overview & Revenue Model

Company Description

Molson Coors Beverage Company, trading under the ticker symbol TAP, is a multinational brewing company with a rich heritage dating back to 1786. Headquartered in Chicago, Illinois, the company operates in the beverage sector, primarily focusing on the production and distribution of beer. Molson Coors owns a diverse portfolio of brands, including iconic names like Coors Light, Miller Lite, Molson Canadian, and Blue Moon, among others. The company serves a wide range of markets across North America, Europe, and other regions, positioning itself as one of the leading beer producers globally.

How the Company Makes Money

Molson Coors generates revenue primarily through the production, marketing, and sale of beers and other beverages. The company's key revenue streams include sales from its diverse portfolio of brands, which are distributed to retail outlets, bars, restaurants, and other venues. Molson Coors also engages in strategic partnerships and joint ventures to expand its market reach and enhance its product offerings. Additionally, the company leverages its extensive distribution network and marketing capabilities to drive sales across various geographic regions. Factors such as brand strength, market presence, and consumer preferences significantly contribute to its earnings, along with efforts to innovate and adapt to changing market trends.

Molson Coors Financial Statement Overview

Summary

Molson Coors shows solid profitability with healthy gross and net profit margins. However, the slight decline in revenue and negative free cash flow growth rate indicate pressures. The balance sheet remains stable with moderate leverage and a robust return on equity.

Income Statement

Molson Coors shows solid profitability with a Gross Profit Margin of 38.36% and a Net Profit Margin of 9.13% for the TTM. However, there is a slight decline in revenue, with a negative Revenue Growth Rate of -2.51% compared to the previous year. EBIT and EBITDA margins remain healthy, at 14.19% and 22.00% respectively, indicating efficient operational performance.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.48, reflecting moderate leverage. The Return on Equity is robust at 7.91%, showing effective use of equity to generate profits. The Equity Ratio stands at 50.47%, indicating a balanced capital structure.

Cash Flow

Molson Coors demonstrates solid cash flow generation with an Operating Cash Flow to Net Income Ratio of 1.73 and a Free Cash Flow to Net Income Ratio of 1.06. However, the Free Cash Flow Growth Rate is negative at -11.21%, suggesting pressure on cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.33B	11.63B	11.70B	10.70B	10.28B	9.65B
Gross Profit	4.35B	4.53B	4.37B	3.66B	4.05B	3.77B
EBITDA	2.49B	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	25.93B	26.06B	26.38B	25.87B	27.62B	27.33B
Cash, Cash Equivalents and Short-Term Investments	412.70M	969.30M	868.90M	600.00M	637.40M	770.10M
Total Debt	6.24B	6.19B	6.27B	6.56B	7.16B	8.28B
Total Liabilities	12.48B	12.61B	12.94B	12.95B	13.95B	14.71B
Stockholders Equity	13.09B	13.09B	13.20B	12.69B	13.42B	12.37B
Cash Flow
Free Cash Flow	1.10B	1.24B	1.41B	840.60M	1.05B	1.12B
Operating Cash Flow	1.79B	1.91B	2.08B	1.50B	1.57B	1.70B
Investing Cash Flow	-776.80M	-648.00M	-841.70M	-625.10M	-509.90M	-413.60M
Financing Cash Flow	-1.05B	-1.14B	-981.40M	-889.50M	-1.17B	-1.07B

Molson Coors Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.38
• 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 Neutral. The current price of 49.38 is above the 20-day moving average (MA) of 49.34, below the 50-day MA of 52.56, and below the 200-day MA of 55.93, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.25 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
BUD	79 Outperform	$136.73B	23.50	7.31%	1.53%	0.58%	9.94%
CCU	77 Outperform	$2.47B	14.06	11.33%	3.26%	6.18%	61.39%
ABEV	75 Outperform	$38.47B	14.72	15.09%	3.67%	1.25%	-13.02%
TAP	65 Neutral	$9.95B	9.85	7.90%	3.84%	-5.17%	-0.74%
SAM	65 Neutral	$2.21B	32.83	7.36%	―	0.79%	-24.27%
STZ	65 Neutral	$30.03B	49.10	-5.05%	2.40%	-0.47%	-117.62%
Sector *	54 Neutral	C$4.47B	4.06	-20.57%	3.87%	8.18%	1.50%

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.

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.