CONSTELLATION BRANDS INC-A (1STZ.MI) Stock Fundamental Analysis
BIT:1STZ - Euronext Milan - US21036P1084 - Common Stock - Currency: EUR
Overall 1STZ gets a fundamental rating of 4 out of 10. We evaluated 1STZ against 25 industry peers in the Beverages industry. While 1STZ is still in line with the averages on profitability rating, there are concerns on its financial health. 1STZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1STZ had positive earnings in the past year.
1STZ had a positive operating cash flow in the past year.
In multiple years 1STZ reported negative net income over the last 5 years.
Each year in the past 5 years 1STZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.38%, 1STZ is doing worse than 87.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of -1.18%, 1STZ is doing worse than 87.50% of the companies in the same industry.
1STZ has a Return On Invested Capital of 15.01%. This is amongst the best in the industry. 1STZ outperforms 95.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1STZ is above the industry average of 7.46%.
The last Return On Invested Capital (15.01%) for 1STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.18% | ||
| ROIC | 15.01% |
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
1.3 Margins
1STZ has a Operating Margin of 34.10%. This is amongst the best in the industry. 1STZ outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1STZ has grown nicely.
1STZ has a Gross Margin of 52.26%. This is comparable to the rest of the industry: 1STZ outperforms 54.17% of its industry peers.
1STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.1% | ||
| PM (TTM) | N/A | ||
| GM | 52.26% |
OM growth 3Y0.41%
OM growth 5Y2.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1STZ is creating value.
Compared to 1 year ago, 1STZ has less shares outstanding
Compared to 5 years ago, 1STZ has less shares outstanding
The debt/assets ratio for 1STZ is higher compared to a year ago.
2.2 Solvency
1STZ has a debt to FCF ratio of 5.93. This is a neutral value as 1STZ would need 5.93 years to pay back of all of its debts.
1STZ's Debt to FCF ratio of 5.93 is fine compared to the rest of the industry. 1STZ outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that 1STZ has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.47, 1STZ is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | N/A |
ROIC/WACC1.96
WACC7.64%
2.3 Liquidity
1STZ has a Current Ratio of 0.92. This is a bad value and indicates that 1STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1STZ (0.92) is worse than 62.50% of its industry peers.
1STZ has a Quick Ratio of 0.92. This is a bad value and indicates that 1STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
1STZ has a Quick ratio of 0.56. This is comparable to the rest of the industry: 1STZ outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
1STZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.18%, which is quite good.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
Looking at the last year, 1STZ shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)14.18%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%16.37%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%1.17%
3.2 Future
The Earnings Per Share is expected to grow by 6.89% on average over the next years.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y-4.57%
EPS Next 2Y1.43%
EPS Next 3Y3.37%
EPS Next 5Y6.89%
Revenue Next Year-6.47%
Revenue Next 2Y-2.61%
Revenue Next 3Y-0.47%
Revenue Next 5Y3.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.41, 1STZ is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1STZ indicates a rather cheap valuation: 1STZ is cheaper than 83.33% of the companies listed in the same industry.
1STZ is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.05, 1STZ is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1STZ indicates a somewhat cheap valuation: 1STZ is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1STZ to the average of the S&P500 Index (21.32), we can say 1STZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1STZ.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1STZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y1.43%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
1STZ has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
1STZ's Dividend Yield is slightly below the industry average, which is at 2.72.
Compared to an average S&P500 Dividend Yield of 2.46, 1STZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
On average, the dividend of 1STZ grows each year by 6.14%, which is quite nice.
Dividend Growth(5Y)6.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of 1STZ are negative and hence is the payout ratio. 1STZ will probably not be able to sustain this dividend level.
The dividend of 1STZ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-899.02%
EPS Next 2Y1.43%
EPS Next 3Y3.37%
BIT:1STZ (4/16/2025, 7:00:00 PM)
162.55
-2.25 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners79.59%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap29.38B
Analysts73.33
Price Target192.97 (18.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend3.54
Dividend Growth(5Y)6.14%
DP-899.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.7%
Min EPS beat(2)-2.92%
Max EPS beat(2)14.31%
EPS beat(4)3
Avg EPS beat(4)4.58%
Min EPS beat(4)-2.92%
Max EPS beat(4)14.31%
EPS beat(8)7
Avg EPS beat(8)5.21%
EPS beat(12)10
Avg EPS beat(12)5.25%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)1
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)9
Avg Revenue beat(16)0.6%
PT rev (1m)-18.47%
PT rev (3m)-32.08%
EPS NQ rev (1m)-7.65%
EPS NQ rev (3m)-11.32%
EPS NY rev (1m)-10.46%
EPS NY rev (3m)-14.21%
Revenue NQ rev (1m)-5.59%
Revenue NQ rev (3m)-8.34%
Revenue NY rev (1m)-10.33%
Revenue NY rev (3m)-13.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 14.05 | ||
| P/S | 3.27 | ||
| P/FCF | 17.21 | ||
| P/OCF | 10.58 | ||
| P/B | 4.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)12.12
EY7.46%
EPS(NY)11.57
Fwd EY7.12%
FCF(TTM)9.44
FCFY5.81%
OCF(TTM)15.36
OCFY9.45%
SpS49.74
BVpS33.53
TBVpS-3.79
PEG (NY)N/A
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.18% | ||
| ROCE | 19.76% | ||
| ROIC | 15.01% | ||
| ROICexc | 15.07% | ||
| ROICexgc | 25.86% | ||
| OM | 34.1% | ||
| PM (TTM) | N/A | ||
| GM | 52.26% | ||
| FCFM | 18.98% |
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
ROICexc(3y)12.3%
ROICexc(5y)11.2%
ROICexgc(3y)22.37%
ROICexgc(5y)20.22%
ROCE(3y)15.97%
ROCE(5y)14.37%
ROICexcg growth 3Y11.53%
ROICexcg growth 5Y13.24%
ROICexc growth 3Y14.12%
ROICexc growth 5Y13.2%
OM growth 3Y0.41%
OM growth 5Y2.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y0.98%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.93 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 272.4% | ||
| Cap/Sales | 11.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | N/A |
F-Score5
WACC7.64%
ROIC/WACC1.96
Cap/Depr(3y)275.65%
Cap/Depr(5y)283.18%
Cap/Sales(3y)11.86%
Cap/Sales(5y)11.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.18%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%16.37%
EPS Next Y-4.57%
EPS Next 2Y1.43%
EPS Next 3Y3.37%
EPS Next 5Y6.89%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%1.17%
Revenue Next Year-6.47%
Revenue Next 2Y-2.61%
Revenue Next 3Y-0.47%
Revenue Next 5Y3.85%
EBIT growth 1Y6.89%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year17.02%
EBIT Next 3Y5.73%
EBIT Next 5Y9.89%
FCF growth 1Y28.27%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y13.39%
OCF growth 3Y5.23%
OCF growth 5Y4.32%