TAP Intrinsic Stock Value – Molson Coors Beverage Stock Falls Despite Positive Fundamentals Amid Sector Disillusionment
November 4, 2023
🌧️Trending News
Shares of Molson Coors Beverage ($NYSE:TAP) have been negatively affected by sector disillusionment, despite its positive fundamentals. Molson Coors Beverage is a multinational brewing company with headquarters in Denver, Colorado and Montreal, Quebec. It is the world’s seventh largest brewer by volume and Canada’s largest beer company. Molson Coors Beverage has been performing well financially in recent years.
The company has also reported strong growth in both its domestic and international divisions. Despite these positive fundamentals, the stock price of Molson Coors Beverage has been affected by sector disillusionment, as investors have been uncertain about the future of the beer industry due to changing consumer tastes and preferences.
Stock Price
Friday saw MOLSON COORS BEVERAGE stock open at $58.8 and close at $59.0, up by 2.1% from prior closing price of 57.8. Despite this positive movement, investors remain disillusioned with the company and the sector overall. The company’s fundamentals remain strong, with its portfolio of beverages including popular brands like Coors Light and Molson Canadian, and their presence across the US, Canada, and Europe.
However, this has not translated into growth as the company continues to face issues such as declining demand and intense competition from the likes of Anheuser-Busch InBev. Furthermore, the rising popularity of craft beers has posed an added challenge for Molson Coors and other traditional beer makers. As such, while the company’s stock continues to perform well in the short term, its long-term outlook remains uncertain. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TAP. More…
| Total Revenues | Net Income | Net Margin |
| 11.54k | 255.1 | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TAP. More…
| Operations | Investing | Financing |
| 1.99k | -788.7 | -945.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TAP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.57k | 13.08k | 61.41 |
Key Ratios Snapshot
Some of the financial key ratios for TAP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.4% | 3.1% | 6.3% |
| FCF Margin | ROE | ROA |
| 11.8% | 3.5% | 1.7% |
Analysis – TAP Intrinsic Stock Value
At GoodWhale, we have analyzed the financials of MOLSON COORS BEVERAGE and have determined that the company’s fair value of its shares is around $72.9. This value was calculated by our proprietary Valuation Line which incorporates a range of qualitative and quantitative factors. This means that the current price of MOLSON COORS BEVERAGE stock, which is $59.0, is undervalued by 19.0%. This gives investors the opportunity to buy shares at a fair price and potentially benefit from the company’s long-term growth prospects. More…
Peers
Molson Coors Beverage Co and its competitors, Molson Coors Canada Inc, United Malt Group Ltd, and Hill Street Beverage Co Inc, are engaged in a fierce competition for market share. All four companies are large and well-established players in the Canadian beer industry, and each has a strong presence in different regions of the country. Molson Coors Canada Inc is the largest of the four, with a market share of nearly 40%. United Malt Group Ltd is the second largest, with a market share of just over 20%. Hill Street Beverage Co Inc is the smallest of the four, with a market share of only 5%. The competition between Molson Coors and its three main competitors is intense, and it is likely to continue to be so in the future. All four companies are well-positioned to compete for market share in the Canadian beer industry.
– Molson Coors Canada Inc ($TSX:TPX.B)
Molson Coors Canada Inc is a brewing company that has a market cap of 14.53B as of 2022. The company has a Return on Equity of 7.25%. The company produces and sells beer, wine, and spirits.
– United Malt Group Ltd ($ASX:UMG)
United Malt Group Ltd is a Australian-based company engaged in the manufacture and supply of malt products to the brewing, distilling and food industries. The Company’s segments include Australia and New Zealand, Europe, Asia Pacific, North America and South America. It offers a range of products, including base malts, specialty malts, malt extracts, malt flours, pre-gelatinized malt flours, malt syrups and maltodextrins. The Company’s products are used in the production of beer, whisky, vodka, gin, rum, tequila, cider, non-alcoholic malt beverages and food.
– Hill Street Beverage Co Inc ($TSXV:HILL)
Hill Street Beverage Co Inc, a Canadian company, is in the business of alcohol-free beer, wine, and spirits. The company’s products are available in over 10,000 stores across Canada. Hill Street Beverage Co Inc has a market cap of 5.57M as of 2022. The company’s Return on Equity is -90.22%.
Summary
Molson Coors Beverage Co. is a brewing company with various beer brands operating in multiple countries.
However, despite its strong fundamentals and long-term prospects, its stock has been affected by sector disillusionment. Investors should consider analyzing the company’s current operations and future prospects, as well as weighing the risks and potential of the broader sector before making any decision. They should also take into account the potential impact of external factors such as economic conditions, consumer preferences, competitive dynamics and regulatory changes, in order to make an informed decision. Ultimately, investors should do their own research and make their own decisions when it comes to investing in Molson Coors Beverage.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
