CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STZ • US21036P1084
156.7 USD
+1.95 (+1.26%)
At close: Jan 30, 2026
157.025 USD
+0.33 (+0.21%)
After Hours: 1/30/2026, 8:20:10 PM
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 32 industry peers in the Beverages industry. STZ has only an average score on both its financial health and profitability. STZ has a valuation in line with the averages, 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.
- STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 5.12%, STZ perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- STZ's Return On Equity of 14.39% is in line compared to the rest of the industry. STZ outperforms 53.13% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.66%, STZ is in the better half of the industry, outperforming 71.88% 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 11.62%.
- The last Return On Invested Capital (12.66%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- STZ has a Profit Margin of 11.83%. This is in the better half of the industry: STZ outperforms 75.00% of its industry peers.
- STZ has a Operating Margin of 33.76%. This is amongst the best in the industry. STZ outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of STZ has grown nicely.
- The Gross Margin of STZ (52.60%) is better than 62.50% of its industry peers.
- STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STZ is still creating some value.
- The number of shares outstanding for STZ has been reduced compared to 1 year ago.
- STZ has less shares outstanding than it did 5 years ago.
- STZ has a worse debt/assets ratio than last year.
2.2 Solvency
- STZ has an Altman-Z score of 3.00. This indicates that STZ is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.00, STZ is in line with its industry, outperforming 59.38% 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.
- With a decent Debt to FCF ratio value of 6.05, STZ is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- STZ has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
- STZ has a Debt to Equity ratio of 1.38. This is in the lower half of the industry: STZ underperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 3 |
ROIC/WACC1.79
WACC7.08%
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 of 1.34. This is comparable to the rest of the industry: STZ outperforms 53.13% of 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 has a Quick ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- STZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.42%.
- Measured over the past years, STZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
- 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
- Based on estimates for the next years, STZ will show a small growth in Earnings Per Share. The EPS will grow by 2.39% on average per year.
- Based on estimates for the next years, STZ will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-14.94%
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
EPS Next 5Y2.39%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.1%
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
- Based on the Price/Earnings ratio of 12.50, the valuation of STZ can be described as correct.
- Based on the Price/Earnings ratio, STZ is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of STZ to the average of the S&P500 Index (28.32), we can say STZ is valued rather cheaply.
- STZ is valuated correctly with a Price/Forward Earnings ratio of 12.56.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 84.38% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
- 71.88% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
- 84.38% of the companies in the same industry are more expensive than STZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 10.45 |
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)1.46
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
- STZ has a Yearly Dividend Yield of 2.64%. 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 1.68.
- Compared to an average S&P500 Dividend Yield of 1.83, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
- On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
- 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)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- STZ pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
- STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
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.
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 -14.94% in the next year.