NYSE:TAP
$40.09
(2/9 3:26PM)
-3.0%
| Open | $41.51 |
Mkt Cap | $6.6 Billion |
| High | $42.5 |
52Wk High | $51.33 |
| Low | $39.76 |
52Wk Low | $30.76 |
| Volume | 2.9 Million |
Avg Vol 10D | 1.2 Million |
Ockham's Rating/Recommendation Summary
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TAP Revenue
As a value investing shop, we are interested in seeing how TAP's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.28x and the low end of the range at 0.82x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for TAP of 2.58x is significantly above its historical average. This places TAP at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 145% merely to return TAP to its historical average.
TAP Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. TAP is above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from TAP. For example, TAP's Cash Earnings ratio per share has fluctuated between 6.90 and 10.75 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where TAP is with respect to prior business periods.
Given this range of ratios per share, TAP at its current price of $41.22 and a Price to Cash Earnings ratio of 9.74 is 10% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about TAP because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 8.82 would significantly improve our outlook for TAP given the current profit levels.
TAP Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In TAP’s case, the estimated annual dividend is $0.96 resulting in a current dividend yield of 2.33%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from TAP against the historic high and low levels over the past 10 years. The highest dividend yield from TAP over this period was 3.12% while the lowest dividend yield was 0.98% A current dividend yield of 13.66% above the historical median is favorable in our analysis of TAP.
It's Been a Month or More Since WSJ Marketbeat Discussed Molson Coors Brewing Company Class B Non-Voting
It's been at least a month since we noticed any major news coverage of TAP, so the story in WSJ Marketbeat may get the ball rolling.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; TAP has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Tuesday may be a gassy day for the markets as investors digest earnings reports from bevvy giants Coke and MOLSON COORS, which both are set to report before the market opens. …”
Squawk On The Street: Discussion of Analysts and Molson Coors Brewing Company Class B Non-Voting
10%. Getting smacked. They raised their guidance sales up 3%. What's the problem? Expectation was up 13% in same-store sales. And finally, MOLSON COORS, new price target at 53. >> thank you, sir. Markets on the rise. Here's your market check. Dow up 180 now. I believe that's yet another intraday high. We are only 18 points away from s&p up almost 17.
“… ow. I believe that's yet another intraday high. We are only 18 points away from s&p up almost 17. …”
TAP's Costs at the Forefront on Closing Bell
Let's take a look at the other stories we're following on the "closing bell" ticker tonight. Brewer MOLSON COORS reported its third quarter profit was up 37%. The company made $235 million due to higher selling prices and cost cuts. Well, that beat wall street expectations. Total global beer volume was down by nearly 3%. Consumers did cut back on spending. The stock today down 8 1/2%. Apparel maker liz clab-born's
“… treet expectations. Total global beer volume was down by nearly 3%. Consumers did cut back on spending. The stock today down 8 1/2%. Apparel maker liz clab-born's …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on Fox Business's Countdown to the Closing Bell
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
The financial targets after the position of schering-plough on down side. Goodyear tire and molson those are -- MOLSON COORS. We have martha stewart living and we're watching the marsh mcclennan and time warner. These are the names to watch. The bank stocks overall, liz and shibani who i'll talk to the bank stocks to the down
“… ks overall, liz and shibani who i'll talk to the bank stocks to the down …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on Fox Business's Fox Business
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
Profits up 37%. The people buying less beer. Why the profit? Higher prices. The market doesn't like it though. Down 6% for MOLSON COORS. The stimulus created or saved 600,000 jobs in september. Liz did the math. Some of these jobs are temporary. Liz, that's an interesting number you got there. >> it is interesting. Stuart, what we're finding, the
“… 's an interesting number you got there. >> it is interesting. Stuart, what we're finding, the …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on CNBC's Mad Money
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
Annihilation, world war i, we're done, to a slap-happy oligopoly where competitors can aggressively raise prices and not get punished with lost market share because everybody's doing it. I like MOLSON COORS, t.A.P., for the pure drinking play, but if you want drinking and smoking, total vice play, don't forget that altria owns a nice chunk of s.A.B. Miller and has a notoriously b.I.G. Dividend. And remember, be responsible. Don't drink and buy stocks at the same time. Why don't we go to david in my home state of new jersey? David. >> caller: hi, jim. >> well, a boo-yah right back to you, david. >> caller: thank you. My question is about diageo. The stock has rallied nicely since late april. It's now around 61 versus $46 was wonder field goal you think the stock is still atraffic at 61 given the -- >> no, man. This stock has moved way too and diageo used to be a close personal favorite of mine and not just because they make johnnie walker black, which happens to be a close personal favorite of mine. But I happen to think the stock versus the earnings. I'd rather have you be in beer
“… want drinking and smoking, total vice play, don't forget that altria owns a nice chunk of s.A.B. Miller and has a notoriously b.I.G. Dividend. And remember, be responsible. Don't drink and buy stocks at the same time. Why don't we go to david in my home state of new jersey? David. >> caller: hi, jim. >> well, a boo-yah right back to you, david. >> caller: thank you. My question is about diageo. The stock has rallied nicely since late april. It's now around 61 versus $46 was wonder field goal you think the stock is still atraffic at 61 given the -- >> no, man. This stock has moved way too and diageo used to be a close personal favorite of mine and not just because they make johnnie walker black, which happens to be a close personal favorite of mine. But I happen to think the stock versus the earnings. I'd rather have you be in beer …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on CNBC's Mad Money
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
We get slammed with an ugly jobs number and the market isn't when you add in the raw costs and distribution businesses being down year over year, you have the making of some great and what do we want to do with we want to buy MOLSON COORS, or tap for all you -- who drank these beers? Thanks for inviting me, pal. Why do I like tap the best in not just for its ticker, t-a-p, or tap. Or that it was down about a dollar today but because the company recently reported a fabulisimo quarter. A 14% earnings beat. The street expected MOLSON COORS to deliver 96 cents of earnings. They came in at $1.11. Why? Because the beer business took its cue from the beat sxlz did decide to give peace a chance and raised prices rather thaen gauging in any more nasty price wars. People aren't buying more beer. Volumes were weak at MOLSON COORS with canadian shipments down 2.9%, uk shipments down 2.4%, u.S. Shipments down 1.1%. But volumes didn't matter anymore because pricing is up up 2.6% in canada. Up 19.8% in the uk. Man, it must cost a lot to get drunk there these days. And up 3% in the u.S. All this more than offsetting the volumes, the lower volumes. Plus, tap has seen major cost savings from its joint venture with miller, miller coors, where they combine all of their beer the benefits of peace. Now, you may never have heard of neville chamberlain and peace at any price. The beer oligopoly is giving us peace at a higher price. Post-labor day volumes seem to be holding up and the pricing's getting even better. Deutsche bank did some channel they found out the pricing for miller coors, the u.S. Joint venture, was up around 3%. Volume's up about 1%. Their contacts in the industry expect prices to continue to rise over the next six months. And that seems to be true even in canada and the uk, which have been tougher markets for MOLSON COORS. Hey, canada, both labatt -- where's the labatt? Thanks for making me look real labatt, which is bud in bev, and MOLSON COORS raised prices by 45 cents per 12-pack. We've never seen these price increases we've been at war for so long. The beer index which they actually keep has accelerated from 1.5% in may to 5.2% in august. Leader, is expected to raise prices in october. Who's raising prices? Do you know anyone who's raising bud is leading the way for the rest of the brewers like MOLSON COORS to raise their prices. Looks like we can't afford to droirn in our beer anymore. Better stick to the cheap stock on the dirty linoleum floor. If you want another great way to play beer, high yielder, higher yield than the 2% you get from tap, do not forget that altria, which has a 7.8% yield, still owns 28.6% of s.A.B. Miller. About a $10 billion stake. Which I don't think it gets full credit for at all in its share price. As the beer industry improves the stock should give it more and even though altria recently denied its selling of stake -- its stake in s.A.B. Miller, the company also said it would evaluate its options. If altria sells its stake back to s.A.B. And used the money to buy back stock, that would give its earnings per share a 5% boost, probably result in the company getting a higher price
“… you -- who drank these beers? Thanks for inviting me, pal. Why do I like tap the best in not just for its ticker, t-a-p, or tap. Or that it was down about a dollar today but because the company recently reported a fabulisimo quarter. A 14% earnings beat. The street expected MOLSON COORS to deliver 96 cents of earnings. They came in at $1.11. Why? Because the beer business took its cue from the beat sxlz did decide to give peace a chance and raised prices rather thaen gauging in any more nasty price wars. People aren't buying more beer. Volumes were weak at MOLSON COORS with canadian shipments down 2.9%, uk shipments down 2.4%, u.S. Shipments down 1.1%. But volumes didn't matter anymore because pricing is up up 2.6% in canada. Up 19.8% in the uk. Man, it must cost a lot to get drunk there these days. And up 3% in the u.S. All this more than offsetting the volumes, the lower volumes. Plus, tap has seen major cost savings from its joint venture with miller, miller coors, where they combine all of their beer the benefits of peace. Now, you may never have heard of neville chamberlain and peace at any price. The beer oligopoly is giving us peace at a higher price. Post-labor day volumes seem to be holding up and the pricing's getting even better. Deutsche bank did some channel they found out the pricing for miller coors, the u.S. Joint venture, was up around 3%. Volume's up about 1%. Their contacts in the industry expect prices to continue to rise over the next six months. And that seems to be true even in canada and the uk, which have been tougher markets for MOLSON COORS. Hey, canada, both labatt -- where's the labatt? Thanks for making me look real labatt, which is bud in bev, and MOLSON COORS raised prices by 45 cents per 12-pack. We've never seen these price increases we've been at war for so long. The beer index which they actually keep has accelerated from 1.5% in may to 5.2% in august. Leader, is expected to raise prices in october. Who's raising prices? Do you know anyone who's raising bud is leading the way for the rest of the brewers like MOLSON COORS to raise their prices. Looks like we can't afford to droirn in our beer anymore. Better stick to the cheap stock on the dirty linoleum floor. If you want another great way to play beer, high yielder, higher yield than the 2% you get from tap, do not forget that altria, which has a 7.8% yield, still owns 28.6% of s.A.B. Miller. About a $10 billion stake. Which I don't think it gets full credit for at all in its share price. As the beer industry improves the stock should give it more and even though altria recently denied its selling of stake -- its stake in s.A.B. Miller, the company also said it would evaluate its options. If altria sells its stake back to s.A.B. And used the money to buy back stock, that would give its earnings per share a 5% boost, probably result in the company getting a higher price …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on CNBC's Closing Bell
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
Are putting that money to work. >> take me through them. >> beer. Absolutely. You get started in college you keep going afterwards. Beer has become more in vogue right now. I like MOLSON COORS. Symbol tap, you have a fairly decent upside, 56 on that stock. >> is a cute trade, but is it right to be tipping this, you know, when you've got all the global effects of a big player coming through, foreign exchange implications. Can we buy it on the basis that the 20-somethings might be spending on a friday night? >> I think you can. They have a lot of their business still based in the beer is growing as a category. In fact, it has been the joe six pack in the united states is back. >> let's talk cheap fashion. >> h & m. They are based out of sweden. They have huge market share in germany, sweden, but they are growing big. They have upped their forecast for the number of stores they are opening this year. They are doing a phenomenal job. They had a slip when they had
“… . >> is a cute trade, but is it right to be tipping this, you know, when you've got all the global effects of a big player coming through, foreign exchange implications. Can we buy it on the basis that the 20-somethings might be spending on a friday night? >> I think you can. They have a lot of their business still based in the beer is growing as a category. In fact, it has been the joe six pack in the united states is back. >> let's talk cheap fashion. >> h & m. They are based out of sweden. They have huge market share in germany, sweden, but they are growing big. They have upped their forecast for the number of stores they are opening this year. They are doing a phenomenal job. They had a slip when they had …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on CNBC's Fast Money
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
To watch this fall? Pete, I know you've been talking about tjx favorably. >> strong and the buyback was big for them today. That helped push them up toward the highs. Jon and I had a fight not long on the show we were talking about pepsi -- >> MOLSON COORS. And i'll tell you what, going into the fall if you look at a chart of MOLSON COORS, always seems to do well in the fall, football saenz, makes a little and pepsi. I think both those names very safe, very defensive and if you look at their performance during the fall, great names going in. You remember that? >> I remember that very clearly. >> that's a lie. >> no, it's true. >> he got it off the interweb. >> so it must be true. >> you know timmy's favorite store is buckle. I don't know if you know that. Timmy, you shop at the buckle all the time? >> i've never even heard of i'm trying to model myself after you but I don't know what we're talking about. >> take a look at buckle. We've talked about it a lot times on the desk. Buckle looks like it's back in >> abercrombie & fitch is a gap's been working, home depot. Those are the ones we've been trying to steer you toward. But a & f don't make sense in this valuation. Those glasses are great. >> did you get those at buckle? >> I don't know, joe, can you >> i've never been to buckle but we know you go to buckle. No doubt about it.
“… S. And i'll tell you what, going into the fall if you look at a chart of MOLSON COORS, always seems to do well in the fall, football saenz, makes a little and pepsi. I think both those names very safe, very defensive and if you look at their performance during the fall, great names going in. You remember that? >> I remember that very clearly. >> that's a lie. >> no, it's true. >> he got it off the interweb. >> so it must be true. >> you know timmy's favorite store is buckle. I don't know if you know that. Timmy, you shop at the buckle all the time? >> i've never even heard of i'm trying to model myself after you but I don't know what we're talking about. >> take a look at buckle. We've talked about it a lot times on the desk. Buckle looks like it's back in >> abercrombie & fitch is a gap's been working, home depot. Those are the ones we've been trying to steer you toward. But a & f don't make sense in this valuation. Those glasses are great. >> did you get those at buckle? >> I don't know, joe, can you >> i've never been to buckle but we know you go to buckle. No doubt about it. …”
Molson Coors Brewing Company Class B Non-Voting (TAP) Discussed on CNBC's Closing Bell
Molson Coors Brewing Company Class B Non-Voting is in the news. Find out how this impacts TAP trading on Ockham Research.
We don't give up our sins. So cigarettes, I like philip morris international, they've got total international exposure, a lots in emerging markets and asia. I love the idea of a MOLSON COORS who came out with blowout numbers this week. Hands down. And you've got a fair amount of international exposure that way. And then look at something like it really has not participated
“… 've got a fair amount of international exposure that way. And then look at something like it really has not participated …”