TSX:TPX.B

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Molson Coors Canada Inc. brews, markets, sells, and distributes various beer brands in Canada.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Molson Coors Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPX.B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

TPX.B

2.2%

CA Beverage

2.0%

CA Market


1 Year Return

-29.8%

TPX.B

-16.3%

CA Beverage

-11.4%

CA Market

Return vs Industry: TPX.B underperformed the Canadian Beverage industry which returned -16.3% over the past year.

Return vs Market: TPX.B underperformed the Canadian Market which returned -11.4% over the past year.


Shareholder returns

TPX.BIndustryMarket
7 Day2.4%2.2%2.0%
30 Day-11.8%2.8%4.1%
90 Day-21.6%-13.4%-8.8%
1 Year-27.4%-29.8%-14.4%-16.3%-8.3%-11.4%
3 Year-54.8%-58.2%-25.5%-30.3%-0.2%-9.5%
5 Year-32.8%-40.1%15.1%2.6%15.9%-0.7%

Price Volatility Vs. Market

How volatile is Molson Coors Canada's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Molson Coors Canada undervalued compared to its fair value and its price relative to the market?

0.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TPX.B (CA$54.09) is trading above our estimate of fair value (CA$20.41)

Significantly Below Fair Value: TPX.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TPX.B is unprofitable, so we can't compare its PE Ratio to the Beverage industry average.

PE vs Market: TPX.B is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TPX.B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TPX.B is good value based on its PB Ratio (0.2x) compared to the CA Beverage industry average (1.4x).


Next Steps

Future Growth

How is Molson Coors Canada forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.0%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Molson Coors Canada has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Molson Coors Canada performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPX.B is currently unprofitable.

Growing Profit Margin: TPX.B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TPX.B is unprofitable, and losses have increased over the past 5 years at a rate of -11.3% per year.

Accelerating Growth: Unable to compare TPX.B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TPX.B is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (5.5%).


Return on Equity

High ROE: TPX.B has a negative Return on Equity (-14.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Molson Coors Canada's financial position?


Financial Position Analysis

Short Term Liabilities: TPX.B's short term assets ($966.7M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: TPX.B's short term assets ($966.7M) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: TPX.B's debt to equity ratio (83.4%) is considered high.

Reducing Debt: TPX.B's debt to equity ratio has reduced from 198.4% to 83.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TPX.B has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TPX.B is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.6% per year.


Next Steps

Dividend

What is Molson Coors Canada's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPX.B's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: TPX.B's dividend (5.26%) is low compared to the top 25% of dividend payers in the Canadian market (6.51%).


Stability and Growth of Payments

Stable Dividend: TPX.B has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TPX.B's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: TPX.B is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Frederic Landtmeters (45yo)

3.67yrs

Tenure

Mr. Frederic Landtmeters has been Chief Executive Officer and President of Molson Coors Canada Inc. at Molson Coors Beverage Company (formerly known as Molson Coors Brewing Company) since October 14, 2016  ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Molson Coors Canada Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Molson Coors Canada Inc.
  • Ticker: TPX.B
  • Exchange: TSX
  • Founded: 1786
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$946.781m
  • Shares outstanding: 17.55m
  • Website: https://www.molsoncoors.com

Location

  • Molson Coors Canada Inc.
  • 1555 Notre Dame Street East
  • Montreal
  • Quebec
  • H2L 2R5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPX.ATSX (The Toronto Stock Exchange)Class A Exchangeable SharesCACADFeb 2005
TPX.BTSX (The Toronto Stock Exchange)YesClass B Exchangeable SharesCACADFeb 2005
MXGB.FOTCPK (Pink Sheets LLC)YesClass B Exchangeable SharesUSUSDFeb 2005

Biography

Molson Coors Canada Inc. brews, markets, sells, and distributes various beer brands in Canada. The company’s beer brands include Blue Moon, Coors Banquet, Coors Light, Miller Genuine Draft, Miller Lite, Staropramen, Carling, Molson Canadian, Creemore Springs, Cobra, Doom Bar, Henry's Hard, and Leinenkugel's. It sells its products to bars, restaurants, convenience stores, grocery stores, liquor stores, and other specialty retail outlets. The company was founded in 1786 and is headquartered in Montreal, Canada. Molson Coors Canada Inc. operates as a subsidiary of Molson Coors Beverage Company 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 04:31
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.