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TAP - profitable brewer with 50% discount in the middle of the hot summer
Molson Coors Brewing Company (MCBC) operates as a brewer. The Company’s segments include MillerCoors LLC (United States segment), operating in the United States; Molson Coors Canada (Canada segment), operating in Canada; Molson Coors Europe (Europe segment), operating in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Republic of Ireland, Romania, Serbia, the United Kingdom and various other European countries
The Company brews, markets, sells and distributes a range of beer brands. The Company offers a portfolio of owned and partner brands, including Carling, Coors Light, Miller Lite, Molson Canadian and Staropramen, as well as craft and specialty beers, such as the Blue Moon Brewing Company brands, the Jacob Leinenkugel Brewing Company brands, Creemore Springs, Cobra and Doom Bar.
Off the $13 lows in summer 1997 TAP has been following the Five Wave up fractal. It topped in wave A of 3 at $112.19 in Oct’16. Since then KSS has been playing a corrective wave B of 3 down.
It may test two main retracement levels, 76.4% of wave A of 3 ( 50.00 ) and 85.4% ( 42.71 ). I also watch 1,000 period Moving Average on Weekly chart that currently stands at 48.85.
My conclusion is TAP will meet strong demand at $50.00 psychological level. Off the Oct’16 top the stock lost 50% of its value!
TAP - weekly chart updated on 6-18-19
Financial Strength
The company has a nice 9% Net Margin. The management shows great discipline in reinvestment profit with Return on Capital at 39%
It is an inexpensive stock traded at only x9 Free Cash Flows. The only concern is a high debt load with Debt equal to x3.8 EBITDA.
The company pays 3% dividend.
Operating Margin
14
Net
Margin
9
Return on Capital
39
Price-to-Free-Cash-Flow
9
Debt-to-Ebitda
3.8
Dividend Yield
3
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