Is it a good company at a reasonable price? Just because a stock is cheap, that does not make it a good buy. I do not think that beer companies are doing as well today as when I had Labatt’s so many years ago. Analysts are all over the place when it comes to recommendations. I would worry about some of the debt ratios. I would be cautious and this stock is not my idea of a good dividend growth stock. However, it is relatively cheap.
I do not own this stock of Molson Coors Canada (TSX-TPX.B, NYSE-TAP). In 2008 I did a spreadsheet on this stock as it has recently been recommended and generally, beer companies make good money. Labatt’s was one of the original companies that I purchased and I did very well with it before it was bought out. Molson Coors was formed in 2005 through the merger of Molson of Canada, and Coors of the United States
When I was updating my spreadsheet, I noticed that Molson Coors had a loss in 2025 was because of a Goodwill Impairment charge.
In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the second quarter in 2026 and expected growth over this year. The N/C means non-calculable. You cannot do some calculations if you are using negative figures.
| Yr | Item | Tot. Gwth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth US$ | 15.40% | 2.91% | -0.51% | <-12 mths |
| 5 | AEPS Growth | 38.27% | 6.69% | -6.27% | <-12 mths |
| 5 | Net Income Growth | -125.46% | N/C | 7.79% | <-12 mths |
| 5 | Cash Flow Growth | 5.23% | 1.02% | 10.80% | <-12 mths |
| 5 | Dividend Growth | 229.82% | 26.96% | 2.13% | <-12 mths |
| 5 | Stock Price Growth | 3.30% | 0.65% | -21.04% | <-12 mths |
| 10 | Revenue Growth US$ | 212.29% | 12.06% | -0.73% | <-this year |
| 10 | AEPS Growth | 44.15% | 3.72% | -12.55% | <-this year |
| 10 | Net Income Growth | -695.16% | N/C | -150.57% | <-this year |
| 10 | Cash Flow Growth | 156.23% | 9.87% | -6.01% | <-this year |
| 10 | Dividend Growth | 14.63% | 1.38% | 0.11% | <-this year |
| 10 | Stock Price Growth | -50.30% | -6.75% | -3.81% | <-this year |
If you had invested in this company in December 2015, for $1,040.00 you would have bought 8 shares at $130 per share. In December 2025, after 10 years you would have received $159.47 in dividends. The stock would be worth $515.36. Your total return would have been $674.83. This would be a total loss of 4.70% per year with 6.78% from capital loss and 208% from dividends. This is in CDN$.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $130.00 | $1,040.00 | 8 | 10 | $159.47 | $515.36 | $674.83 |
The current dividend yield is good with dividend growth recovering. The current dividend growth is good (5% to 6% ranges) at 5.21%. The 5 and 10 year dividend yields are moderate (2% to 4% ranges) at 2.85% and 2.54%. The historical median dividend yield is low (below 2%) at 1.96%. The dividends were cut over 70% in 2020 and they are almost back to the dividends paid in 2019. The dividend growth looks so good for last 5 years because of the company increasing the dividends to make up for the cut in 2020. This is in US$ as reporting and dividends are in US$.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is non-calculable due to a negative EPS with 5 year coverage very high at 269%. However, DPR on AEPS is more important. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 35% with 5 year coverage at 30%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 16% with 5 year coverage at 14%. The DPR for 2025 for Free Cash Flow (FCF) is good at 35% with 5 year coverage at 28%. FCF for 2025 varies from $1,068M which I used to $1,240M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | -17.49% | 269.06% |
| AEPS | 34.69% | 29.58% |
| CFPS | 15.57% | 13.60% |
| FCF | 35.23% | 28.15% |
Debt Ratios need improving especially the Liquidity Ratio and Intangible and Goodwill Ratios. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.43 and currently high at 0.82. The Intangible and Goodwill Ratios are much too high at 1.96 and currently at 1.97. The Liquidity Ratio for 2025 is really low at 0.55 and 0.88 currently. If you added in Cash Flow after dividends, the ratios are still very low at 0.82 and somewhat better currently at 1.15. It is best when these ratios are 1.50 or higher. The Debt Ratio for 2025 is good at 1.86 and 1.75 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.22 and 1.19 and currently at 2.41 and 1.38.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.43 | 0.82 |
| Intang/GW | 1.96 | 1.97 |
| Liquidity | 0.55 | 0.88 |
| Liq. + CF | 0.82 | 1.15 |
| Debt Ratio | 1.86 | 1.75 |
| Leverage | 2.22 | 2.41 |
| D/E Ratio | 1.19 | 1.38 |
The Total Return per Year is shown below for years of 5 to 30 to the end of 2025 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 28.84% | 5.40% | 2.25% | 3.16% |
| 2015 | 10 | 1.27% | -4.70% | -6.78% | 2.08% |
| 2010 | 15 | 5.99% | 4.78% | 1.64% | 3.14% |
| 2005 | 20 | 6.41% | 6.55% | 2.70% | 3.84% |
| 2000 | 25 | 6.78% | 12.22% | 5.68% | 6.54% |
| 1995 | 30 | 5.62% | 9.43% | 5.02% | 4.42% |
The Total Return per Year is shown below for years of 5 to 35 to the end of 2025 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 26.96% | 3.88% | 0.65% | 3.22% |
| 2015 | 10 | 1.38% | -4.55% | -6.75% | 2.20% |
| 2010 | 15 | 3.76% | 2.50% | -0.48% | 2.98% |
| 2005 | 20 | 5.54% | 3.97% | 1.00% | 2.97% |
| 2000 | 25 | 6.84% | 3.03% | 0.60% | 2.43% |
| 1995 | 30 | 6.96% | 8.59% | 4.92% | 3.68% |
| 1990 | 35 | 5.93% | 7.61% | 4.43% | 3.19% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.26, 10.97 and 12.67. The corresponding 10 year ratios are 9.32, 11.12 and 12.91. The corresponding historical ratios are 9.12, 13.71 and 17.98. The current ratio is 8.03 based on a stock price of $36.86 and EPS estimate for 2026 of $6.54. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 9.03, 11.02, and 13.01. The corresponding 10 year ratios are 10.70, 12.70 and 14.64. The corresponding historical ratios are 8.93, 11.53 and 13.78. The current ratio is 7.78 based on a stock price of $36.86 and AEPS estimate for 2026 of $4.74. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a Graham Price of $75.99. The 10-year low, median, and high median Price/Graham Price Ratios are 0.61, 0.71 and 0.82. The current ratio is 0.49 based on a stock price of $36.86. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a 10-year median Price/Book Value per Share Ratio of 0.97. The current ratio is 0.68 based on a Book Value of $10,120M, Book Value per Share of $54.14 and a stock price of $36.86. The current ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a 10-year median Price/Cash Flow per Share Ratio of 6.87. The current ratio is 4.11 based on Cash Flow per Share estimate for 2026 of $8.97, Cash Flow of $1,677M and a stock price of $36.86. The current ratio is 40% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get an historical median dividend yield of 1.96%. The current dividend is 5.21% based on dividends of $1.92 and a stock price of $36.86. The current dividend yield is 166% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a 10 year median dividend yield of 2.54%. The current dividend is 5.21% based on dividends of $1.92 and a stock price of $36.86. The current dividend yield is 105% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
The 10-year median Price/Sales (Revenue) Ratio is 1.09. The current ratio is 0.62 based on Revenue estimate for 2026 of $11,059M, Revenue per Share of $59.17 and a stock price of $36.86. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
Results of stock price testing is that the stock price is probably relatively cheap. The dividend yield testing says this and it is confirmed by the P/S Ratio test. All the testing is saying that the stock price is relatively cheap. I am testing in US$ as the financials are in US$ and the estimates are in US$.
When I look at analysts’ recommendations, I find Strong Buy (4), Buy (2), Hold (11), Underperform (3), and Sell (1). The consensus would be a Hold. The 12 month consensus stock price is $44.90 with a high of $61.00 and a low of $33.00. The consensus stock price of $44.90 implies a total return of 27.02% with 21.81% from capital gains and 5.21% from dividends based on a current stock price of $36.86. This testing is in US$.
The analysts’ recommendations are Strong Buy (4), Buy (2), Hold (11), Underperform (3), and Sell (1). The consensus would be a Hold. The 12 month consensus stock price is $63.96 with a high of $86.90 and a low of $47.01. The consensus stock price of $63.96 implies a total return of 23.40% with 18.34% from capital gains and 5.06% from dividends based on a current stock price of $54.05. This testing is in CDN$. I am using the latest exchange rates. Sometimes there is a difference in CDN and US markets. I did the rest of the testing is US$ because the financials are in US$ and the estimates are in US$.
There is one entry on Stock Chase for 2025 and the analysts says that the Beer Market is tough and Do Not Buy. Tony Dong on Motley Fool thinks this is a great company to buy and hold forever. Nikhil Kumar on Motley Fool thinks that this company is uniquely positioned to thrive in the current consumer market. The company put out a press release about their fourth quarter for 2025. The company put out a Press Release about their second quarter of 2026.
Zacks Equity Research via Yahoo Finance reviews the beer consumer industry. Simply Wall Street via Yahoo Finance reviews this stock and talks about whether it is under or overvalued.
Molson Coors Canada Inc is a large brewer and distributor of beer and other malt beverages. Its brands include Coors Light, Miller Lite, Molson Canadian, Carling, Staropramen, Coors Banquet, Blue Moon, Vizzy, Leinenkugel, and Creemore. Its breweries are located across the U.S., Canada, and Europe, with the majority of the company's revenue generated in the Americas. Its web site is here Molson Coors Canada.
The last stock I wrote about was about was Medtronic PLC (NYSE-MDT) ... learn more. The next stock I will write about will be Brookfield Corp (TSX-BN, NYSE-BN) ... learn more on Monday, October 12, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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