Molson Coors attracts various beer enthusiasts with diverse brands such as Corona, Keystone, Killians Irish Red and Blue Moon, among others. So why is the stock attractive?
The brewer has secured 28% of the U.S. market and 40% of the Canadian market, making it Canada's top-selling beer company, Mohr said. The company's Carling beer brand is also the top-selling beer in the U.K.
The stock closed down 3.74% on Wednesday, but has enjoyed its rise 2014, climbing over 31.3% year to date. The company also pays a 2% dividend yield.
Aside from its market share, diverse portfolio and powerful brand, the company's fundamentals are also rock solid.
Mohr points out that Molson Coors' pristine balance sheet gives the company a healthy leverage ratio below 2x. Its operational discipline has allowed it to enjoy cost savings of over $1 billion since 2008.
It's also a money machine, generating nearly $1 billion in cash per year. With over $700 million in cash on the balance sheet, the company also has flexibility when it comes to strategic acquisitions it could make down the road to boost its brand and diversify its portfolio, Mohr concluded.
- - Written by Bret Kenwell
TheStreet Ratings team rates MOLSON COORS BREWING CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOLSON COORS BREWING CO (TAP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: TAP Ratings Report