Molson Coors Beverage Co (TAP) stock analysis

P/E below its 5-year median

Molson Coors Beverage's P/E of 8.4 is below its own 5-year median of 11.7.

P/E below the industry

Molson Coors Beverage's P/E of 8.4 is below the Beverages median of 32.8.

EV/EBITDA below its 5-year median

Molson Coors Beverage's EV/EBITDA of 6.1 is below its 5-year median of 8.8.

P/B below the industry

Molson Coors Beverage's price-to-book of 0.68 is below the Beverages median of 2.94.

Trading below fair value

The share price of $39.69 is below our fair value estimate of $104.47.

Margin of safety over 20%

The price is 62.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -2.3% over the last twelve months; the Beverages median is 4.5%.

Guidance unchanged

The latest outlook (full year 2026 Underlying depreciation and amortization, Aug 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 30.8% over the last twelve months, against 33.0% a year earlier.

Return on equity under 15%

Return on equity was 8.7% over the last twelve months and averaged 0.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Molson Coors Beverage's return on equity of 8.7% is below the Beverages median of 12.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 6.9% over the last twelve months, against a 5-year average of 1.1%.

Net margin below the industry

Molson Coors Beverage's net margin of 6.9% is below the Beverages median of 7.3%.

High debt

Debt is 58.5% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 66.5% five years ago to 58.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 30.4% of total debt.

Interest well covered

Operating income covers interest expense 5.0 times.

Short-term assets don't cover short-term debts

Current assets are 0.86 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.46; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Molson Coors Beverage paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Molson Coors Beverage yields 4.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 40.7% of net income.

Covered by free cash flow

Dividends take 31.1% of free cash flow.