CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
NYSE:STZ - New York Stock Exchange, Inc. - US21036P1084 - Common Stock - Currency: USD
STZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. STZ has only an average score on both its financial health and profitability. STZ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STZ had positive earnings in the past year.
STZ had a positive operating cash flow in the past year.
In multiple years STZ reported negative net income over the last 5 years.
In the past 5 years STZ always reported a positive cash flow from operatings.
1.2 Ratios
STZ has a worse Return On Assets (-1.99%) than 72.73% of its industry peers.
STZ has a worse Return On Equity (-6.09%) than 81.82% of its industry peers.
STZ's Return On Invested Capital of 14.04% is amongst the best of the industry. STZ outperforms 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STZ is in line with the industry average of 11.23%.
The last Return On Invested Capital (14.04%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROIC | 14.04% |
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 Operating Margin (33.29%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has grown nicely.
STZ's Gross Margin of 51.67% is fine compared to the rest of the industry. STZ outperforms 66.67% 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 | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% |
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 STZ is creating value.
The number of shares outstanding for STZ has been reduced compared to 1 year ago.
Compared to 5 years ago, STZ has less shares outstanding
Compared to 1 year ago, STZ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.94, STZ perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
The Debt to FCF ratio of STZ is 5.60, which is a neutral value as it means it would take STZ, 5.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, STZ is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that STZ has dependencies on debt financing.
The Debt to Equity ratio of STZ (1.40) is worse than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.93
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.07 indicates that STZ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, STZ is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
STZ has a Quick Ratio of 1.07. 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 Quick ratio of 0.68. This is comparable to the rest of the industry: STZ outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.50% over the past 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.
Looking at the last year, STZ shows a decrease in Revenue. The Revenue has decreased by -0.46% in the last 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)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
3.2 Future
STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 1.67% on average per year.
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
EPS Next 5Y4.77%
Revenue Next Year-7.51%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.16%
Revenue Next 5Y1.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
STZ is valuated correctly with a Price/Earnings ratio of 12.37.
Compared to the rest of the industry, the Price/Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.51, STZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.99, the valuation of STZ can be described as very reasonable.
87.88% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
STZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 11.99 |
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.
STZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STZ is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y0.29%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
STZ's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.35, STZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
STZ has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
The earnings of STZ are negative and hence is the payout ratio. STZ will probably not be able to sustain this dividend level.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-164.75%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
165.99
+1.41 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change0.08%
Market Cap29.26B
Analysts74
Price Target218.25 (31.48%)
Short Float %4.86%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP-164.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-3.57%
Max EPS beat(2)14.31%
EPS beat(4)2
Avg EPS beat(4)3.15%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.55%
EPS beat(12)9
Avg EPS beat(12)4.55%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)-0.73%
PT rev (3m)-6.4%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-10.63%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-7.43%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-7.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 11.99 | ||
| P/S | 2.91 | ||
| P/FCF | 14.15 | ||
| P/OCF | 9.44 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)13.42
EY8.08%
EPS(NY)13.85
Fwd EY8.34%
FCF(TTM)11.73
FCFY7.06%
OCF(TTM)17.58
OCFY10.59%
SpS57.08
BVpS41.21
TBVpS-2.41
PEG (NY)N/A
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROCE | 18.04% | ||
| ROIC | 14.04% | ||
| ROICexc | 14.1% | ||
| ROICexgc | 23.8% | ||
| OM | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% | ||
| FCFM | 20.55% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 234.83% | ||
| Cap/Sales | 10.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.94 |
F-Score5
WACC7.28%
ROIC/WACC1.93
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)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
EPS Next 5Y4.77%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
Revenue Next Year-7.51%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.16%
Revenue Next 5Y1.67%
EBIT growth 1Y-1.81%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year4.53%
EBIT Next 3Y5.58%
EBIT Next 5Y5.23%
FCF growth 1Y33.52%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y16.32%
OCF growth 3Y5.23%
OCF growth 5Y4.32%