Molson Coors Canada Inc.
Molson Coors Canada Inc. Fundamental Analysis
Molson Coors Canada Inc. (TPX-B.TO) shows weak financial fundamentals with a PE ratio of -4.16, profit margin of -18.77%, and ROE of -17.77%. The company generates $11.1B in annual revenue with weak year-over-year growth of -0.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -7.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TPX-B.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTPX-B.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTPX-B.TO trades at attractive valuation levels.
Growth Score
ModerateTPX-B.TO shows steady but slowing expansion.
Financial Health Score
ModerateTPX-B.TO shows balanced financial health with some risks.
Profitability Score
WeakTPX-B.TO struggles to sustain strong margins.
Key Financial Metrics
Is TPX-B.TO Expensive or Cheap?
P/E Ratio
TPX-B.TO trades at -4.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TPX-B.TO's PEG of 1.56 indicates fair valuation.
Price to Book
The market values Molson Coors Canada Inc. at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.60 times EBITDA. This is generally considered low.
How Well Does TPX-B.TO Make Money?
Net Profit Margin
For every $100 in sales, Molson Coors Canada Inc. keeps $-18.77 as profit after all expenses.
Operating Margin
Core operations generate 13.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-17.77 in profit for every $100 of shareholder equity.
ROA
Molson Coors Canada Inc. generates $-9.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Molson Coors Canada Inc. produces operating cash flow of $1.80B, showing steady but balanced cash generation.
Free Cash Flow
Molson Coors Canada Inc. produces free cash flow of $1.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.48 in free cash annually.
FCF Yield
TPX-B.TO converts 12.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.18
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TPX-B.TO Stacks Against Its Sector Peers
| Metric | TPX-B.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.16 | 22.37 | Better (Cheaper) |
| ROE | -17.77% | 1250.00% | Weak |
| Net Margin | -18.77% | -5215.00% (disorted) | Weak |
| Debt/Equity | 0.62 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 0.55 | 2.47 | Weak Liquidity |
| ROA | -9.22% | -193095.00% (disorted) | Weak |
TPX-B.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Molson Coors Canada Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.01%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
381.72%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
4.45%
Industry Style: Defensive, Dividend, Low Volatility
Growing