Molson Coors Brewing Co

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TAP : NYSE : Consumer Goods
$97.02 | %
Today's Range: 96.74 - 97.73
Avg. Daily Volume: 1533700.0
03/24/17 - 4:02 PM ET

Financial Analysis


MOLSON COORS BREWING CO's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. MOLSON COORS BREWING CO has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 62.12% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2294.0844.4
EBITDA ($mil)374.175.1
EBIT ($mil)193.145.7
Net Income ($mil)1438.432.8


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)560.9430.9
Total Assets ($mil)29341.512276.3
Total Debt ($mil)12072.52937.4
Equity ($mil)11418.77043.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin44.4138.03
EBITDA Margin16.38.89
Operating Margin8.425.41
Sales Turnover0.170.29
Return on Assets6.732.92
Return on Equity17.325.04
Debt Q4 FY16 Q4 FY15
Current Ratio0.691.03
Debt/Capital0.510.29
Interest Expense86.225.3
Interest Coverage2.241.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)214.9184.5
Div / share0.410.41
EPS6.650.18
Book value / share53.1338.17
Institutional Own % n/a n/a
Avg Daily Volume1497667.01889787.0

Valuation


BUY. MOLSON COORS BREWING CO's P/E ratio indicates a significant discount compared to an average of 32.19 for the Beverages industry and a significant discount compared to the S&P 500 average of 26.33. To use another comparison, its price-to-book ratio of 1.83 indicates a discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 8.65. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, MOLSON COORS BREWING CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TAP 10.57 Peers 32.19   TAP 18.55 Peers 20.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TAP is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TAP is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TAP 14.26 Peers 23.39   TAP NM Peers 1.99

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TAP is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TAP's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TAP 1.83 Peers 8.65   TAP 384.21 Peers 6.04

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TAP is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

TAP is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TAP 4.28 Peers 4.29   TAP 36.93 Peers 1.93

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TAP is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TAP has a sales growth rate that significantly exceeds its peers.

 

 

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