Molson Coors (TAP) AI Stock Analysis

• Market Cap: $10.25B
• Dividend Yield: 3.69%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.24
• Revenue Growth: -5.17%
• EPS Growth: -0.74%
• Country: US
• Employees: 16,800
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.50
• Shares Outstanding: 189,837,540
• 10 Day Avg. Volume: 2,120,668
• 30 Day Avg. Volume: 2,402,335
• PEG Ratio: -1.43
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.58
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 11.09
• Enterprise Value/Ebitda: 6.68
• 1Y Price Target: $60.46
• Price Target Upside: 22.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $55.00 ▲(11.52%Upside)

Molson Coors demonstrates strong valuation and stable financial performance, though macroeconomic challenges and revised earnings guidance weigh on the outlook. Positive corporate events and technical indicators suggest potential resilience.

Positive Factors

Management Outlook

Management struck a cautiously upbeat and optimistic tone regarding the company's ability to deliver on its recently lowered top and bottom line guidance.

Operational Efficiency

Recent investments to modernize and right size its North America brewery network has made it more flexible and efficient, but it still requires reliable, consistent volume throughput.

Negative Factors

Consumer Behavior

Beer distributors representing a large swathe of regions had many theories on recent weakness in beer, but what seemed to unite the group: the consumer is soft, administration policies, poor weather, and other factors like cannabis use and younger consumers drinking less.

Financial Performance

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

Industry Trends

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 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 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 presents a stable financial performance with strong profitability metrics and a balanced capital structure. Despite a slight revenue decline, the company maintains healthy margins and cash flow ratios, indicating resilience in the face of industry challenges.

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	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
EBITDA	1.75B	2.16B	1.81B	2.29B	564.00M
Net Income	1.12B	948.90M	-186.50M	1.01B	-945.70M
Balance Sheet
Total Assets	26.06B	26.38B	25.87B	27.62B	27.33B
Cash, Cash Equivalents and Short-Term Investments	969.30M	868.90M	600.00M	637.40M	770.10M
Total Debt	6.19B	6.27B	6.56B	7.16B	8.28B
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: 49.32
• 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 49.32 is below the 20-day moving average (MA) of 50.05, below the 50-day MA of 50.76, and below the 200-day MA of 55.61, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 26.06 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	74 Outperform	$130.69B	22.92	7.31%	1.58%	0.58%	9.94%
SAM	73 Outperform	$2.31B	29.83	8.15%	―	2.46%	-7.28%
CCU	71 Outperform	$2.15B	12.38	11.33%	3.89%	6.18%	61.39%
ABEV	71 Outperform	$36.91B	14.16	15.09%	1.93%	1.25%	-13.02%
TAP	69 Neutral	$10.25B	10.18	7.90%	3.69%	-5.17%	-0.74%
STZ	69 Neutral	$30.43B	49.10	-5.05%	2.37%	-0.47%	-117.62%
Sector *	65 Neutral	$27.10B	15.29	-1.16%	3.10%	1.15%	2.75%

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.