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

NYSE:STZ • US21036P1084

Current stock price

156 USD
-3.31 (-2.08%)
At close:
156 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.
  • In the past year STZ had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
  • In the past 5 years STZ always reported a positive cash flow from operatings.
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 2026 0 1B 2B 3B

1.2 Ratios

  • STZ has a Return On Assets of 7.70%. This is in the better half of the industry: STZ outperforms 60.61% of its industry peers.
  • With a decent Return On Equity value of 20.87%, STZ is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 10.15%, STZ is doing good in the industry, outperforming 60.61% of the companies in the same industry.
  • STZ had an Average Return On Invested Capital over the past 3 years of 10.62%. This is in line with the industry average of 11.89%.
Industry RankSector Rank
ROA 7.7%
ROE 20.87%
ROIC 10.15%
ROA(3y)4.68%
ROA(5y)2.72%
ROE(3y)12.47%
ROE(5y)7.25%
ROIC(3y)10.62%
ROIC(5y)9.74%
STZ Yearly ROA, ROE, ROICSTZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20

1.3 Margins

  • STZ has a better Profit Margin (18.46%) than 84.85% of its industry peers.
  • In the last couple of years the Profit Margin of STZ has declined.
  • STZ has a better Operating Margin (32.97%) than 100.00% of its industry peers.
  • STZ's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of STZ (52.12%) 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 RankSector Rank
OM 32.97%
PM (TTM) 18.46%
GM 52.12%
OM growth 3Y1.36%
OM growth 5Y-0.36%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y0.62%
GM growth 5Y-0.11%
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 2026 0 10 20 30 40 50

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3

2. STZ Health Analysis

2.1 Basic Checks

  • STZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, STZ has less shares outstanding
  • Compared to 5 years ago, STZ has less shares outstanding
  • STZ has a better debt/assets ratio than last year.
STZ Yearly Shares OutstandingSTZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 5B 10B 15B 20B 25B

2.2 Solvency

  • STZ has a debt to FCF ratio of 5.89. This is a neutral value as STZ would need 5.89 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.89, STZ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • A Debt/Equity ratio of 1.23 is on the high side and indicates that STZ has dependencies on debt financing.
  • STZ has a Debt to Equity ratio of 1.23. This is in the lower half of the industry: STZ underperforms 69.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.89
Altman-Z N/A
ROIC/WACC1.39
WACC7.31%
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 2026 2B 4B 6B 8B 10B

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 has a Current ratio (1.08) which is in line with 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.
  • STZ has a Quick ratio of 0.55. This is in the lower half of the industry: STZ underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.55
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 2026 1B 2B 3B 4B

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

4

3. STZ Growth Analysis

3.1 Past

  • The earnings per share for STZ have decreased strongly by -14.23% in the last year.
  • STZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.45% yearly.
  • The Revenue for STZ has decreased by -10.48% in the past year. This is quite bad
  • STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.19% yearly.
EPS 1Y (TTM)-14.23%
EPS 3Y3.54%
EPS 5Y3.45%
EPS Q2Q%-27.76%
Revenue 1Y (TTM)-10.48%
Revenue growth 3Y-1.12%
Revenue growth 5Y1.19%
Sales Q2Q%-11.27%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.69% on average over the next years.
  • Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 2.12% on average per year.
EPS Next Y5.67%
EPS Next 2Y5.23%
EPS Next 3Y4.13%
EPS Next 5Y5.69%
Revenue Next Year0.2%
Revenue Next 2Y1.06%
Revenue Next 3Y1.46%
Revenue Next 5Y2.12%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 13.21, which indicates a correct 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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, STZ is valued rather cheaply.
  • STZ is valuated correctly with a Price/Forward Earnings ratio of 12.50.
  • 81.82% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. STZ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.21
Fwd PE 12.5
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

  • Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
  • STZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STZ is cheaper than 84.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.08
EV/EBITDA 10.85
STZ Per share dataSTZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STZ does not grow enough to justify the current Price/Earnings ratio.
  • STZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)3.83
EPS Next 2Y5.23%
EPS Next 3Y4.13%

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

6

5. STZ Dividend Analysis

5.1 Amount

  • STZ has a Yearly Dividend Yield of 2.59%.
  • Compared to an average industry Dividend Yield of 1.69, STZ pays a bit more dividend than its industry peers.
  • STZ's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.59%

5.2 History

  • On average, the dividend of STZ grows each year by 6.33%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.33%
Div Incr Years10
Div Non Decr Years10
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

  • 42.43% 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.
DP42.43%
EPS Next 2Y5.23%
EPS Next 3Y4.13%
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 2026 0 1B 2B 3B
STZ Dividend Payout.STZ Dividend Payout, showing the Payout Ratio.STZ Dividend Payout.PayoutRetained Earnings

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STZ Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION BRANDS INC-A

NYSE:STZ (4/24/2026, 8:09:49 PM)

After market: 156 0 (0%)

156

-3.31 (-2.08%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-08
Earnings (Next)06-29
Inst Owners80.27%
Inst Owner Change0.15%
Ins Owners0.1%
Ins Owner Change0%
Market Cap27.05B
Revenue(TTM)9.14B
Net Income(TTM)1.69B
Analysts72.86
Price Target177.22 (13.6%)
Short Float %4.93%
Short Ratio3.12
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
Yearly Dividend4.07
Dividend Growth(5Y)6.33%
DP42.43%
Div Incr Years10
Div Non Decr Years10
Ex-Date04-29
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.23%
Min EPS beat(2)9.48%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)6.79%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.68%
EPS beat(12)10
Avg EPS beat(12)5.74%
EPS beat(16)13
Avg EPS beat(16)5.64%
Revenue beat(2)2
Avg Revenue beat(2)1.46%
Min Revenue beat(2)1.01%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)-0.01%
PT rev (3m)-1.07%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.13%
Valuation
Industry RankSector Rank
PE 13.21
Fwd PE 12.5
P/S 2.96
P/FCF 15.08
P/OCF 10.14
P/B 3.35
P/tB 85.74
EV/EBITDA 10.85
EPS(TTM)11.81
EY7.57%
EPS(NY)12.48
Fwd EY8%
FCF(TTM)10.35
FCFY6.63%
OCF(TTM)15.39
OCFY9.87%
SpS52.7
BVpS46.61
TBVpS1.82
PEG (NY)2.33
PEG (5Y)3.83
Graham Number111.288 (-28.66%)
Profitability
Industry RankSector Rank
ROA 7.7%
ROE 20.87%
ROCE 15.69%
ROIC 10.15%
ROICexc 10.21%
ROICexgc 17.03%
OM 32.97%
PM (TTM) 18.46%
GM 52.12%
FCFM 19.63%
ROA(3y)4.68%
ROA(5y)2.72%
ROE(3y)12.47%
ROE(5y)7.25%
ROIC(3y)10.62%
ROIC(5y)9.74%
ROICexc(3y)10.67%
ROICexc(5y)9.79%
ROICexgc(3y)18.73%
ROICexgc(5y)17.55%
ROCE(3y)16.59%
ROCE(5y)15.26%
ROICexgc growth 3Y1.53%
ROICexgc growth 5Y5.9%
ROICexc growth 3Y5.69%
ROICexc growth 5Y6.41%
OM growth 3Y1.36%
OM growth 5Y-0.36%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y0.62%
GM growth 5Y-0.11%
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.89
Debt/EBITDA 2.9
Cap/Depr 208.98%
Cap/Sales 9.57%
Interest Coverage 250
Cash Conversion 77.77%
Profit Quality 106.36%
Current Ratio 1.08
Quick Ratio 0.55
Altman-Z N/A
F-Score6
WACC7.31%
ROIC/WACC1.39
Cap/Depr(3y)259.02%
Cap/Depr(5y)267.16%
Cap/Sales(3y)11.4%
Cap/Sales(5y)11.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.23%
EPS 3Y3.54%
EPS 5Y3.45%
EPS Q2Q%-27.76%
EPS Next Y5.67%
EPS Next 2Y5.23%
EPS Next 3Y4.13%
EPS Next 5Y5.69%
Revenue 1Y (TTM)-10.48%
Revenue growth 3Y-1.12%
Revenue growth 5Y1.19%
Sales Q2Q%-11.27%
Revenue Next Year0.2%
Revenue Next 2Y1.06%
Revenue Next 3Y1.46%
Revenue Next 5Y2.12%
EBIT growth 1Y-13.95%
EBIT growth 3Y0.22%
EBIT growth 5Y0.82%
EBIT Next Year21.16%
EBIT Next 3Y6.77%
EBIT Next 5Y6.13%
FCF growth 1Y-7.44%
FCF growth 3Y1.38%
FCF growth 5Y-1.57%
OCF growth 1Y-15.33%
OCF growth 3Y-1.07%
OCF growth 5Y-1%

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.


Can you provide the profitability details for CONSTELLATION BRANDS INC-A?

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


What is the valuation of CONSTELLATION BRANDS INC-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CONSTELLATION BRANDS INC-A (STZ) is 13.21 and the Price/Book (PB) ratio is 3.35.


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 grow by 5.67% in the next year.