CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
129.16 USD
-0.53 (-0.41%)
128.8 USD
-0.36 (-0.28%)
We assign a fundamental rating of 5 out of 10 to STZ. STZ was compared to 33 industry peers in the Beverages industry. STZ has an excellent profitability rating, but there are some minor concerns on its financial health. STZ is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STZ (5.71%) is better than 60.61% of its industry peers.
STZ's Return On Equity of 16.30% is fine compared to the rest of the industry. STZ outperforms 60.61% of its industry peers.
STZ's Return On Invested Capital of 13.29% is fine compared to the rest of the industry. STZ outperforms 72.73% of its industry peers.
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 10.84%.
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
With an excellent Profit Margin value of 12.70%, STZ belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Operating Margin of STZ (33.05%) is better than 100.00% of its industry peers.
STZ's Operating Margin has improved in the last couple of years.
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
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
STZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STZ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ has a Altman-Z score (2.79) which is in line with its industry peers.
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.
The Debt to FCF ratio of STZ (5.71) is better 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.
STZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: STZ underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.97
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying 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.
The Quick ratio of STZ (0.54) is worse than 69.70% 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%.
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 -5.56% 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)-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
The Earnings Per Share is expected to grow by 2.65% on average over the next years.
The Revenue is expected to grow by 0.10% on average over the next years.
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
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
STZ is valuated reasonably with a Price/Earnings ratio of 10.15.
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 25.89, which is the current average of the S&P500 Index.
STZ is valuated reasonably with a Price/Forward Earnings ratio of 10.28.
Based on the Price/Forward Earnings ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. STZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 72.73% 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 | 12.23 | ||
| EV/EBITDA | 9.09 |
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)1.18
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 3.15%.
In the last 3 months the price of STZ has falen by -23.22%. 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 3.05.
STZ's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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
59.24% of the earnings are spent on dividend by STZ. 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%
129.16
-0.53 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners77.93%
Inst Owner Change-3.91%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap22.61B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target178.21 (37.98%)
Short Float %6.89%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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)0.06%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.28 | ||
| P/S | 2.35 | ||
| P/FCF | 12.23 | ||
| P/OCF | 8.16 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)12.73
EY9.86%
EPS(NY)12.56
Fwd EY9.72%
FCF(TTM)10.56
FCFY8.17%
OCF(TTM)15.82
OCFY12.25%
SpS54.98
BVpS42.85
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)1.18
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 | 2.79 |
F-Score8
WACC6.75%
ROIC/WACC1.97
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%.