CONSTELLATION BRANDS INC-A (STZ) Fundamental Analysis & Valuation

NYSE:STZ • US21036P1084

Current stock price

150.14 USD
+1.82 (+1.23%)
At close:
150.14 USD
0 (0%)
After Hours:

This STZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. STZ Profitability Analysis

1.1 Basic Checks

  • In the past year STZ was profitable.
  • STZ had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
  • Each year in the past 5 years STZ had a positive operating cash flow.
STZ Yearly Net Income VS EBIT VS OCF VS FCFSTZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • STZ's Return On Assets of 5.12% is in line compared to the rest of the industry. STZ outperforms 55.88% of its industry peers.
  • The Return On Equity of STZ (14.39%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 12.66%, STZ is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
  • STZ had an Average Return On Invested Capital over the past 3 years of 12.24%. This is in line with the industry average of 11.84%.
  • The 3 year average ROIC (12.24%) for STZ is below the current ROIC(12.66%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.12%
ROE 14.39%
ROIC 12.66%
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
STZ Yearly ROA, ROE, ROICSTZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • STZ's Profit Margin of 11.83% is fine compared to the rest of the industry. STZ outperforms 73.53% of its industry peers.
  • STZ's Operating Margin of 33.76% 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 grown nicely.
  • With a decent Gross Margin value of 52.60%, STZ is doing good in the industry, outperforming 64.71% of the companies in the same industry.
  • STZ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 33.76%
PM (TTM) 11.83%
GM 52.6%
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%
STZ Yearly Profit, Operating, Gross MarginsSTZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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4

2. STZ Health Analysis

2.1 Basic Checks

  • STZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
STZ Yearly Shares OutstandingSTZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
STZ Yearly Total Debt VS Total AssetsSTZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.95 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.95, STZ is doing good in the industry, outperforming 61.76% of the companies in the same industry.
  • The Debt to FCF ratio of STZ is 6.05, which is on the high side as it means it would take STZ, 6.05 years of fcf income to pay off all of its debts.
  • STZ has a Debt to FCF ratio of 6.05. This is in the better half of the industry: STZ outperforms 61.76% of its industry peers.
  • STZ has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
  • STZ's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. STZ is outperformed by 76.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 6.05
Altman-Z 2.95
ROIC/WACC1.8
WACC7.03%
STZ Yearly LT Debt VS Equity VS FCFSTZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • STZ has a Current Ratio of 1.34. 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 Current ratio (1.34) which is in line with its industry peers.
  • STZ has a Quick Ratio of 1.34. 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's Quick ratio of 0.70 is in line compared to the rest of the industry. STZ outperforms 47.06% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 0.7
STZ Yearly Current Assets VS Current LiabilitesSTZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. STZ Growth Analysis

3.1 Past

  • The earnings per share for STZ have decreased by -6.42% in the last year.
  • The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
  • STZ shows a decrease in Revenue. In the last year, the revenue decreased by -7.86%.
  • STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%

3.2 Future

  • The Earnings Per Share is expected to grow by 2.03% on average over the next years.
  • The Revenue is expected to decrease by -0.15% on average over the next years.
EPS Next Y-14.75%
EPS Next 2Y-4.8%
EPS Next 3Y-1.66%
EPS Next 5Y2.03%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.15%

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.
STZ Yearly Revenue VS EstimatesSTZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
STZ Yearly EPS VS EstimatesSTZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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6

4. STZ Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.97, the valuation of STZ can be described as very reasonable.
  • Based on the Price/Earnings ratio, STZ is valued a bit cheaper than 79.41% of the companies in the same industry.
  • STZ is valuated cheaply when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 12.03, STZ is valued correctly.
  • Based on the Price/Forward Earnings ratio, STZ is valued a bit cheaper than 76.47% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. STZ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.97
Fwd PE 12.03
STZ Price Earnings VS Forward Price EarningsSTZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 76.47% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, STZ is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.77
EV/EBITDA 10.1
STZ Per share dataSTZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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)1.4
EPS Next 2Y-4.8%
EPS Next 3Y-1.66%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. STZ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.75%, STZ has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.74, STZ pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, STZ pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.75%

5.2 History

  • The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
  • STZ has paid a dividend for at least 10 years, which is 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
STZ Yearly Dividends per shareSTZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • STZ pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y-4.8%
EPS Next 3Y-1.66%
STZ Yearly Income VS Free CF VS DividendSTZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B
STZ Dividend Payout.STZ Dividend Payout, showing the Payout Ratio.STZ Dividend Payout.PayoutRetained Earnings

More info and screens

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STZ Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION BRANDS INC-A

NYSE:STZ (3/13/2026, 8:04:00 PM)

After market: 150.14 0 (0%)

150.14

+1.82 (+1.23%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)01-07
Earnings (Next)04-02
Inst Owners80.29%
Inst Owner Change2.9%
Ins Owners0.1%
Ins Owner Change0%
Market Cap26.04B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.43
Price Target177.23 (18.04%)
Short Float %6.08%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 2.75%
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP64.83%
Div Incr Years9
Div Non Decr Years9
Ex-Date01-29
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.62%
Min EPS beat(2)6.26%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)5.61%
EPS beat(16)13
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)0%
PT rev (3m)0.21%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-14.86%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 11.97
Fwd PE 12.03
P/S 2.77
P/FCF 14.77
P/OCF 9.64
P/B 3.38
P/tB N/A
EV/EBITDA 10.1
EPS(TTM)12.54
EY8.35%
EPS(NY)12.48
Fwd EY8.31%
FCF(TTM)10.16
FCFY6.77%
OCF(TTM)15.58
OCFY10.37%
SpS54.11
BVpS44.47
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.4
Graham Number112.01
Profitability
Industry RankSector Rank
ROA 5.12%
ROE 14.39%
ROCE 16.24%
ROIC 12.66%
ROICexc 12.76%
ROICexgc 20.96%
OM 33.76%
PM (TTM) 11.83%
GM 52.6%
FCFM 18.78%
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-Score7
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 6.05
Debt/EBITDA 2.98
Cap/Depr 227.4%
Cap/Sales 10%
Interest Coverage 250
Cash Conversion 75.43%
Profit Quality 158.81%
Current Ratio 1.34
Quick Ratio 0.7
Altman-Z 2.95
F-Score7
WACC7.03%
ROIC/WACC1.8
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)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
EPS Next Y-14.75%
EPS Next 2Y-4.8%
EPS Next 3Y-1.66%
EPS Next 5Y2.03%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.15%
EBIT growth 1Y-9.11%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.81%
EBIT Next 3Y1.89%
EBIT Next 5Y1.72%
FCF growth 1Y12.99%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y-4.33%
OCF growth 3Y5.23%
OCF growth 5Y4.32%

CONSTELLATION BRANDS INC-A / STZ Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CONSTELLATION BRANDS INC-A (STZ) stock?

ChartMill assigns a fundamental rating of 5 / 10 to STZ.


What is the valuation status for STZ stock?

ChartMill assigns a valuation rating of 6 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Fairly Valued.


How profitable is CONSTELLATION BRANDS INC-A (STZ) stock?

CONSTELLATION BRANDS INC-A (STZ) has a profitability rating of 6 / 10.


What is the financial health of CONSTELLATION BRANDS INC-A (STZ) stock?

The financial health rating of CONSTELLATION BRANDS INC-A (STZ) is 4 / 10.


What is the earnings growth outlook for CONSTELLATION BRANDS INC-A?

The Earnings per Share (EPS) of CONSTELLATION BRANDS INC-A (STZ) is expected to decline by -14.75% in the next year.