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Why Molson Coors Brewing Company (NYSE:TAP) Is An Attractive Investment To Consider

Simply Wall St

I've been keeping an eye on Molson Coors Brewing Company (NYSE:TAP) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TAP has a lot to offer. Basically, it is a well-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Molson Coors Brewing here.

6 star dividend payer and undervalued

TAP's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of TAP's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the food, beverage & tobacco industry, TAP is also trading below its peers, relative to earnings generated. This further reaffirms that TAP is potentially undervalued.

NYSE:TAP Intrinsic value, October 9th 2019

Income investors would also be happy to know that TAP is one of the highest dividend payers in the market, with current dividend yield standing at 4.1%. TAP has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:TAP Historical Dividend Yield, October 9th 2019

Next Steps:

For Molson Coors Brewing, I've compiled three fundamental aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for TAP’s future growth? Take a look at our free research report of analyst consensus for TAP’s outlook.
  2. Historical Performance: What has TAP's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TAP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.