TAP
Molson Coors Brewing Company
Consumer, Event Driven/Special Sit
09/17/2014
Presented
| Date | 09/11/2014 |
| Price | $71.80 |
| Market Cap | $13.30B |
| Ent Value | $16.47B |
| P/E Ratio | 27.12x |
| Book Value | $42.39 |
| Div Yield | 2.2% |
| Shares O/S | 185.10M |
| Ave Daily Vol | 1,450,000 |
| Short Int | 1.27% |
Current
| Price | $54.49 |
| Market Cap | $11.29B |
| Molson Coors Brewing Company manufactures and sells beer and other beverage products. The company sells its products in Canada under the Coors Light, Molson Canadian, Molson Export, Molson Canadian 67, Molson Dry, Molson Canadian Cider, the Rickard's family, Carling, Carling Black Label, Pilsner, Keystone Light, Creemore Springs, the Granville Island, and Coors Banquet brands. It also brews or distributes licensed products under the Heineken, Amstel Light, Murphy's, Newcastle Brown Ale, Strongbow cider, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, and Milwaukee's Best Dry brands. In addition, the company distributes the Corona, Coronita, Negra Modelo, and Pacifico brands, as well as Singha brand. Further, the company sells various brands in the United States and Puerto Rico comprising Coors Light, Miller Lite, Miller High Life, Keystone Light, Blue Moon, Leinenkugel's, Coors Banquet, Miller Genuine Draft, Icehouse, Mickey's, Milwaukee's Best, Hamm's, Old English 800, Blue Moon, Henry Weinhard's, Molson and Foster's, George Killian's Irish Red, Redd's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Batch 19, Worthington's, St. Stefanus, Third Shift, cider, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in Europe that include Carling, Ozujsko, Jelen, Staropramen, Coors Light, Kamenitza, Niksicko, Bergenbier, Branik, Worthington's, Sharp's Doom Bar, Borsodi, Ostravar, Noroc, Astika, Apatinsko, and Blue Moon; and various regional ale brands, as well as factored brands. The company also sells brands through a joint venture, Cobra Beer Partnership Ltd. In addition, it sells Zima, Iceberg 9000, King Cobra, Coors Coors Gold, and Coors Extra brands. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company in February 2005. Molson Coors Brewing Company was founded in 1786 and is headquartered in Denver, Colorado. |
Publicly traded companies mentioned herein: Anheuser-Busch InBev SA/NV (ABI BB / BUD), Constellation Brands Inc (STZ), Heineken NV (HEIA NA), SABMiller PLC (SAB LN)
Highlights
The presenter believes consolidation in the global beer industry is likely to continue, and is long shares of Molson Coors (TAP) because the risk/ reward appears to be favorable at present levels. In his opinion, TAP’s fundamentals are solid and the stock is fairly valued in the low $70s. Downside risk appears to be limited to 10-15% at most, and on the upside he can see a number of ways to win with the potential for a 30-40%+ total return over the next 12-24 months. Analogous to Constellation buying full rights to Corona (for just ~9x EBITDA) when AB InBev took over Grupo Modelo, the presenter’s best case scenario considers the potential for TAP to acquire SAB’s stake in MillerCoors (at an attractive value) if AB InBev continues its quest to become the most dominant global beer company and tries to do a deal with SABMiller.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.