CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
138.53 USD
-1.96 (-1.4%)
We assign a fundamental rating of 5 out of 10 to STZ. STZ was compared to 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 valued quite cheap, but it does not seem to be growing.
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.
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.
1.2 Ratios
STZ's Return On Assets of 5.71% is in line compared to the rest of the industry. STZ outperforms 57.58% of its industry peers.
STZ's Return On Equity of 16.30% is in line compared to the rest of the industry. STZ outperforms 57.58% 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 78.79% 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 11.47%.
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 78.79% of its industry peers.
The Operating Margin of STZ (33.05%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has grown nicely.
STZ has a Gross Margin of 51.93%. This is in the better half of the industry: STZ outperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STZ is creating value.
STZ has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.87 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 2.87, STZ is doing good in the industry, outperforming 60.61% of the companies in the same industry.
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.
STZ has a better Debt to FCF ratio (5.71) than 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.
With a Debt to Equity ratio value of 1.34, STZ is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.94
WACC6.86%
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's Current ratio of 1.08 is on the low side compared to the rest of the industry. STZ is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.54 indicates that STZ may have some problems paying its short term obligations.
STZ has a worse Quick ratio (0.54) than 66.67% of its industry peers.
| 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.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 0.10% on average per year.
EPS Next Y-15.58%
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
EPS Next 5Y2.65%
Revenue Next Year-10.91%
Revenue Next 2Y-5.45%
Revenue Next 3Y-2.8%
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
A Price/Earnings ratio of 10.88 indicates a reasonable valuation of STZ.
Based on the Price/Earnings ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.06, the valuation of STZ can be described as reasonable.
STZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (24.03), we can say STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 11.06 |
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 69.70% of the companies listed 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 | 13.05 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The decent profitability rating of STZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.98%. 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 1.77.
STZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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.
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
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-4.62%
EPS Next 3Y-1.54%
NYSE:STZ (12/26/2025, 2:57:44 PM)
138.53
-1.96 (-1.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-4.04%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap24.11B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price TargetN/A
Short Float %7.55%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)-0.76%
PT rev (3m)-6.77%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-9.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 11.06 | ||
| P/S | 2.51 | ||
| P/FCF | 13.05 | ||
| P/OCF | 8.71 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)12.73
EY9.19%
EPS(NY)12.53
Fwd EY9.04%
FCF(TTM)10.62
FCFY7.67%
OCF(TTM)15.91
OCFY11.49%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.27
Graham Number111.1
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 | 2.87 |
F-Score8
WACC6.86%
ROIC/WACC1.94
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-15.58%
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-10.91%
Revenue Next 2Y-5.45%
Revenue Next 3Y-2.8%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.92%
EBIT Next 3Y1.99%
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 6 / 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 -15.58% 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%.