Molson Coors Brewing Co

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TAP : NYSE : Consumer Goods
$94.29 -0.56 | -0.59%
Today's Range: 94.135 - 94.905
Avg. Daily Volume: 1460600.0
05/24/17 - 9:53 AM ET

Financial Analysis


MOLSON COORS BREWING CO's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.16% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2448.7657.2
EBITDA ($mil)585.771.7
EBIT ($mil)392.07.2
Net Income ($mil)201.3162.7


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)395.02602.9
Total Assets ($mil)29542.915210.3
Total Debt ($mil)12286.13036.9
Equity ($mil)11598.39898.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin49.6245.36
EBITDA Margin23.9110.9
Operating Margin16.011.1
Sales Turnover0.230.23
Return on Assets6.812.9
Return on Equity17.394.44
Debt Q1 FY17 Q1 FY16
Current Ratio0.753.08
Debt/Capital0.510.23
Interest Expense96.626.9
Interest Coverage4.060.27


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)215.3214.7
Div / share0.410.41
EPS0.930.8
Book value / share53.8746.11
Institutional Own % n/a n/a
Avg Daily Volume1452193.01598232.0

Valuation


BUY. MOLSON COORS BREWING CO's P/E ratio indicates a significant discount compared to an average of 56.10 for the Beverages industry and a significant discount compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 1.72 indicates a discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 7.37. The price-to-sales ratio is well above the S&P 500 average, but well 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 9.92 Peers 56.10   TAP 18.04 Peers 21.05

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 13.27 Peers 24.22   TAP NM Peers 1.51

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 1.72 Peers 7.37   TAP 309.21 Peers 1.93

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 2.98 Peers 4.46   TAP 89.42 Peers 6.47

Discount. 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 significant discount to 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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