CONSTELLATION BRANDS INC-A (STZ)
US21036P1084 - Common Stock
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 33 industry peers in the Beverages industry. Both the profitability and the financial health of STZ get a neutral evaluation. Nothing too spectacular is happening here. STZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STZ was profitable.
STZ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.51%, STZ is doing worse than 72.73% of the companies in the same industry.
STZ has a worse Return On Equity (7.36%) than 63.64% of its industry peers.
STZ's Return On Invested Capital of 13.24% is fine compared to the rest of the industry. STZ outperforms 69.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STZ is below the industry average of 13.01%.
The 3 year average ROIC (10.51%) for STZ is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 7.36% | ||
| ROIC | 13.24% |
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.51%
ROIC(5y)9.67%
1.3 Margins
With a Profit Margin value of 5.69%, STZ perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
STZ's Profit Margin has declined in the last couple of years.
STZ's Operating Margin of 34.00% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has remained more or less at the same level.
The Gross Margin of STZ (51.28%) 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 | 34% | ||
| PM (TTM) | 5.69% | ||
| GM | 51.28% |
OM growth 3Y-0.41%
OM growth 5Y0.34%
PM growth 3Y-9.24%
PM growth 5Y-16.35%
GM growth 3Y-1.01%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STZ is creating some value.
The number of shares outstanding for STZ remains at a similar level compared to 1 year ago.
Compared to 5 years ago, STZ has less shares outstanding
Compared to 1 year ago, STZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that STZ is not in any danger for bankruptcy at the moment.
The Altman-Z score of STZ (3.35) is better than 60.61% of its industry peers.
STZ has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as STZ would need 7.07 years to pay back of all of its debts.
The Debt to FCF ratio of STZ (7.07) is better than 60.61% of its industry peers.
STZ has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
STZ has a worse Debt to Equity ratio (1.42) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.71
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.25 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio (1.25) which is in line with its industry peers.
A Quick Ratio of 0.53 indicates that STZ may have some problems paying its short term obligations.
STZ's Quick ratio of 0.53 is on the low side compared to the rest of the industry. STZ is outperformed by 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.81% over the past year.
Measured over the past 5 years, STZ shows a small growth in Earnings Per Share. The EPS has been growing by 5.38% on average per year.
The Revenue has been growing slightly by 4.14% in the past year.
Measured over the past years, STZ shows a small growth in Revenue. The Revenue has been growing by 4.18% on average per year.
EPS 1Y (TTM)16.81%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%16.76%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%2.89%
3.2 Future
Based on estimates for the next years, STZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.01% on average per year.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 6.44% on average per year.
EPS Next Y14.84%
EPS Next 2Y12.7%
EPS Next 3Y11.72%
EPS Next 5Y12.01%
Revenue Next Year4.52%
Revenue Next 2Y5.3%
Revenue Next 3Y5.73%
Revenue Next 5Y6.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
STZ is valuated correctly with a Price/Earnings ratio of 16.69.
84.85% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. STZ is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.54, which indicates a correct valuation of STZ.
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 23.80. STZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.65 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
STZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)3.1
EPS Next 2Y12.7%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, STZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.05, STZ has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, STZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of STZ has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
STZ pays out 119.90% of its income as dividend. This is not a sustainable payout ratio.
The dividend of STZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP119.9%
EPS Next 2Y12.7%
EPS Next 3Y11.72%
CONSTELLATION BRANDS INC-A
NYSE:STZ (12/27/2024, 8:04:01 PM)
After market: 224 +1.29 (+0.58%)222.71
-1.56 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners82.37%
Inst Owner Change-0.75%
Ins Owners0.11%
Ins Owner Change-0.33%
Market Cap40.43B
Analysts79.31
Price Target294.91 (32.42%)
Short Float %1.77%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Dividend Growth(5Y)4.06%
DP119.9%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)2.13%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.89%
Min EPS beat(4)2.13%
Max EPS beat(4)7.4%
EPS beat(8)7
Avg EPS beat(8)4.38%
EPS beat(12)11
Avg EPS beat(12)6.24%
EPS beat(16)13
Avg EPS beat(16)6.42%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)7
Avg Revenue beat(12)0.96%
Revenue beat(16)10
Avg Revenue beat(16)1.52%
PT rev (1m)-0.53%
PT rev (3m)-3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.43%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 14.54 | ||
| P/S | 3.97 | ||
| P/FCF | 24.65 | ||
| P/OCF | 13.34 | ||
| P/B | 5.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.26 |
EPS(TTM)13.34
EY5.99%
EPS(NY)15.32
Fwd EY6.88%
FCF(TTM)9.03
FCFY4.06%
OCF(TTM)16.69
OCFY7.5%
SpS56.14
BVpS43.36
TBVpS-3.35
PEG (NY)1.13
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 7.36% | ||
| ROCE | 17.18% | ||
| ROIC | 13.24% | ||
| ROICexc | 13.28% | ||
| ROICexgc | 22.56% | ||
| OM | 34% | ||
| PM (TTM) | 5.69% | ||
| GM | 51.28% | ||
| FCFM | 16.09% |
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.51%
ROIC(5y)9.67%
ROICexc(3y)10.59%
ROICexc(5y)9.75%
ROICexgc(3y)19.84%
ROICexgc(5y)17.72%
ROCE(3y)13.65%
ROCE(5y)12.46%
ROICexcg growth 3Y12.46%
ROICexcg growth 5Y10.13%
ROICexc growth 3Y8.59%
ROICexc growth 5Y8.1%
OM growth 3Y-0.41%
OM growth 5Y0.34%
PM growth 3Y-9.24%
PM growth 5Y-16.35%
GM growth 3Y-1.01%
GM growth 5Y0.04%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 318.63% | ||
| Cap/Sales | 13.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.68% | ||
| Profit Quality | 283.02% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.35 |
F-Score7
WACC7.72%
ROIC/WACC1.71
Cap/Depr(3y)284.81%
Cap/Depr(5y)272.44%
Cap/Sales(3y)11.78%
Cap/Sales(5y)10.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.81%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%16.76%
EPS Next Y14.84%
EPS Next 2Y12.7%
EPS Next 3Y11.72%
EPS Next 5Y12.01%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%2.89%
Revenue Next Year4.52%
Revenue Next 2Y5.3%
Revenue Next 3Y5.73%
Revenue Next 5Y6.44%
EBIT growth 1Y12.35%
EBIT growth 3Y4.54%
EBIT growth 5Y4.54%
EBIT Next Year24.39%
EBIT Next 3Y13.44%
EBIT Next 5Y11.23%
FCF growth 1Y-4.94%
FCF growth 3Y-8.03%
FCF growth 5Y2.13%
OCF growth 1Y6.93%
OCF growth 3Y-0.32%
OCF growth 5Y4.36%