CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
130.38 USD
-1.43 (-1.08%)
130.38 USD
0 (0%)
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 33 industry peers in the Beverages industry. While STZ has a great profitability rating, there are some minor concerns on its financial health. STZ has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year STZ was profitable.
In the past year STZ had a positive cash flow from operations.
In multiple years STZ reported negative net income over the last 5 years.
STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STZ (5.71%) is better than 60.61% of its industry peers.
STZ has a Return On Equity of 16.30%. This is in the better half of the industry: STZ outperforms 60.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.29%, STZ is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is in line with the industry average of 10.84%.
The last Return On Invested Capital (13.29%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROIC | 13.29% |
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
STZ has a better Profit Margin (12.70%) than 81.82% of its industry peers.
STZ has a better Operating Margin (33.05%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has grown nicely.
The Gross Margin of STZ (51.93%) is better than 63.64% of its industry peers.
In the last couple of years the Gross Margin of STZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STZ is creating value.
Compared to 1 year ago, STZ has less shares outstanding
The number of shares outstanding for STZ has been reduced compared to 5 years ago.
The debt/assets ratio for STZ is higher compared to a year ago.
2.2 Solvency
STZ has an Altman-Z score of 2.80. This is not the best score and indicates that STZ is in the grey zone with still only limited risk for bankruptcy at the moment.
STZ has a Altman-Z score (2.80) which is in line with its industry peers.
STZ has a debt to FCF ratio of 5.71. This is a neutral value as STZ would need 5.71 years to pay back of all of its debts.
The Debt to FCF ratio of STZ (5.71) is better than 69.70% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that STZ has dependencies on debt financing.
STZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: STZ underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.97
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, STZ is doing worse than 66.67% of the companies in the same industry.
STZ has a Quick Ratio of 1.08. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
STZ has a worse Quick ratio (0.54) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for STZ have decreased by -4.57% in the last year.
STZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
The Revenue has decreased by -5.56% in the past year.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
3.2 Future
STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.65% yearly.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.24, the valuation of STZ can be described as reasonable.
STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.85% of the companies in the same industry.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.38, the valuation of STZ can be described as very reasonable.
STZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. STZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
STZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STZ is cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
STZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, STZ has a reasonable but not impressive dividend return.
The stock price of STZ dropped by -22.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
STZ's Dividend Yield is a higher than the industry average which is at 3.11.
Compared to an average S&P500 Dividend Yield of 2.36, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
STZ has been paying a dividend for at least 10 years, so it has a reliable track record.
As STZ did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
STZ pays out 59.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
130.38
-1.43 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners77.93%
Inst Owner Change-0.6%
Ins Owners0.1%
Ins Owner Change0.02%
Market Cap22.82B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target178.21 (36.69%)
Short Float %6.89%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP59.24%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.34%
Min EPS beat(2)-3.57%
Max EPS beat(2)6.26%
EPS beat(4)2
Avg EPS beat(4)3.52%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.2%
EPS beat(12)9
Avg EPS beat(12)4.1%
EPS beat(16)13
Avg EPS beat(16)5.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)-3.22%
PT rev (3m)-16.65%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10.38 | ||
| P/S | 2.37 | ||
| P/FCF | 12.35 | ||
| P/OCF | 8.24 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.14 |
EPS(TTM)12.73
EY9.76%
EPS(NY)12.56
Fwd EY9.63%
FCF(TTM)10.56
FCFY8.1%
OCF(TTM)15.82
OCFY12.13%
SpS54.98
BVpS42.85
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)1.2
Graham Number110.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROCE | 16.95% | ||
| ROIC | 13.29% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 22.51% | ||
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% | ||
| FCFM | 19.2% |
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%
ROICexgc growth 3Y11.53%
ROICexgc 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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 212.82% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.64% | ||
| Profit Quality | 151.15% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.8 |
F-Score8
WACC6.76%
ROIC/WACC1.97
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)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
EPS Next Y-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.01%
EBIT Next 3Y1.87%
EBIT Next 5Y1.94%
FCF growth 1Y19.84%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y1.64%
OCF growth 3Y5.23%
OCF growth 5Y4.32%
CONSTELLATION BRANDS INC-A / STZ FAQ
What is the ChartMill fundamental rating of CONSTELLATION BRANDS INC-A (STZ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to STZ.
Can you provide the valuation status for CONSTELLATION BRANDS INC-A?
ChartMill assigns a valuation rating of 7 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Undervalued.
How profitable is CONSTELLATION BRANDS INC-A (STZ) stock?
CONSTELLATION BRANDS INC-A (STZ) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for STZ stock?
The Earnings per Share (EPS) of CONSTELLATION BRANDS INC-A (STZ) is expected to decline by -15.48% in the next year.
Is the dividend of CONSTELLATION BRANDS INC-A sustainable?
The dividend rating of CONSTELLATION BRANDS INC-A (STZ) is 6 / 10 and the dividend payout ratio is 59.24%.