CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
127.65 USD
-0.3 (-0.23%)
127.1 USD
-0.55 (-0.43%)
STZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. While STZ belongs to the best of the industry regarding profitability, 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
STZ had positive earnings in the past year.
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.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
STZ has a Return On Assets of 5.71%. This is in the better half of the industry: STZ outperforms 60.61% of its industry peers.
STZ has a better Return On Equity (16.30%) than 60.61% of its industry peers.
STZ has a Return On Invested Capital of 13.29%. This is in the better half of the industry: STZ outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is in line with the industry average of 10.70%.
The 3 year average ROIC (12.24%) for STZ is below the current ROIC(13.29%), indicating increased profibility in the last year.
| 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 Profit Margin of 12.70%. This is amongst the best in the industry. STZ outperforms 81.82% of its industry peers.
Looking at the Operating Margin, with a value of 33.05%, STZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of STZ has grown nicely.
STZ has a better Gross Margin (51.93%) than 63.64% of its industry peers.
STZ's Gross Margin has been stable in the last couple of years.
| 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
Compared to 5 years ago, STZ has less shares outstanding
The debt/assets ratio for STZ is higher compared to a year ago.
2.2 Solvency
STZ has an Altman-Z score of 2.78. 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 (2.78) which is comparable to the rest of the industry.
The Debt to FCF ratio of STZ is 5.71, which is a neutral value as it means it would take STZ, 5.71 years of fcf income to pay off all of its debts.
STZ has a Debt to FCF ratio of 5.71. This is in the better half of the industry: STZ outperforms 69.70% of its industry peers.
STZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
STZ's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. STZ is outperformed by 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.98
WACC6.72%
2.3 Liquidity
STZ has a Current Ratio of 1.08. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
STZ has a worse Current ratio (1.08) than 66.67% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.54, STZ is doing worse than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
STZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.57%.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
The Revenue has decreased by -5.56% in the past year.
The Revenue has been growing slightly by 4.12% on average over the past years.
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
Based on estimates for the next years, STZ will show a small growth in Earnings Per Share. The EPS will grow by 2.65% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.03, which indicates a very decent valuation of STZ.
84.85% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.16, the valuation of STZ can be described as reasonable.
Based on the Price/Forward Earnings ratio, STZ is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 9.01 |
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)1.17
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 3.19%.
In the last 3 months the price of STZ has falen by -25.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
STZ's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 2.37, 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.
STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
127.65
-0.3 (-0.23%)
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 Cap22.34B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target178.21 (39.61%)
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 | 10.03 | ||
| Fwd PE | 10.16 | ||
| P/S | 2.32 | ||
| P/FCF | 12.09 | ||
| P/OCF | 8.07 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.01 |
EPS(TTM)12.73
EY9.97%
EPS(NY)12.56
Fwd EY9.84%
FCF(TTM)10.56
FCFY8.27%
OCF(TTM)15.82
OCFY12.39%
SpS54.98
BVpS42.85
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)1.17
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 | 2.78 |
F-Score8
WACC6.72%
ROIC/WACC1.98
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%.