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

NYSE:STZ • US21036P1084

Current stock price

151.4 USD
+0.99 (+0.66%)
At close:
150.5 USD
-0.9 (-0.59%)
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

  • STZ had positive earnings in the past year.
  • In the past year STZ had a positive cash flow from operations.
  • 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.
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 has a Return On Assets of 5.12%. This is comparable to the rest of the industry: STZ outperforms 55.88% of its industry peers.
  • STZ's Return On Equity of 14.39% is in line compared to the rest of the industry. STZ outperforms 58.82% of its industry peers.
  • STZ has a better Return On Invested Capital (12.66%) than 73.53% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for STZ is in line with the industry average of 11.81%.
  • 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 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 has a better Profit Margin (11.83%) than 73.53% of its industry peers.
  • STZ has a better Operating Margin (33.76%) than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of STZ has grown nicely.
  • STZ's Gross Margin of 52.60% is fine compared to the rest of the industry. STZ outperforms 64.71% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. STZ Health Analysis

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.
  • Compared to 5 years ago, STZ has less shares outstanding
  • Compared to 1 year ago, STZ has a worse debt to assets ratio.
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

  • STZ has an Altman-Z score of 2.96. This is not the best score and indicates that STZ is in the grey zone with still only limited risk for bankruptcy at the moment.
  • STZ has a better Altman-Z score (2.96) than 61.76% of its industry peers.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 1.38, STZ is doing worse than 76.47% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 6.05
Altman-Z 2.96
ROIC/WACC1.77
WACC7.15%
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.
  • Looking at the Current ratio, with a value of 1.34, STZ is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • 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 in line with 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.
  • 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.
  • Looking at the last year, STZ shows a decrease in Revenue. The Revenue has decreased by -7.86% 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)-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

  • STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.03% yearly.
  • STZ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.15% yearly.
EPS Next Y-14.75%
EPS Next 2Y-4.8%
EPS Next 3Y-1.66%
EPS Next 5Y2.03%
Revenue Next Year-10.85%
Revenue Next 2Y-5.39%
Revenue Next 3Y-2.91%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less 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

  • STZ is valuated correctly with a Price/Earnings ratio of 12.07.
  • 79.41% 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 24.89, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 12.13, the valuation of STZ can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 76.47% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, STZ is valued a bit cheaper.
Industry RankSector Rank
PE 12.07
Fwd PE 12.13
STZ Price Earnings VS Forward Price EarningsSTZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • 73.53% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
  • 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 14.9
EV/EBITDA 10.16
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)1.41
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

  • STZ has a Yearly Dividend Yield of 2.71%.
  • STZ's Dividend Yield is a higher than the industry average which is at 1.87.
  • STZ's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.71%

5.2 History

  • On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
  • 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

  • 64.83% of the earnings are spent on dividend by STZ. 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

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STZ Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION BRANDS INC-A

NYSE:STZ (3/27/2026, 8:04:00 PM)

After market: 150.5 -0.9 (-0.59%)

151.4

+0.99 (+0.66%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)01-07
Earnings (Next)04-08
Inst Owners80.29%
Inst Owner Change2.9%
Ins Owners0.1%
Ins Owner Change0%
Market Cap26.25B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.43
Price Target178.39 (17.83%)
Short Float %5.58%
Short Ratio3.12
Dividend
Industry RankSector Rank
Dividend Yield 2.71%
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)0.65%
PT rev (3m)1.16%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-14.36%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.17%
Valuation
Industry RankSector Rank
PE 12.07
Fwd PE 12.13
P/S 2.8
P/FCF 14.9
P/OCF 9.72
P/B 3.4
P/tB N/A
EV/EBITDA 10.16
EPS(TTM)12.54
EY8.28%
EPS(NY)12.48
Fwd EY8.24%
FCF(TTM)10.16
FCFY6.71%
OCF(TTM)15.58
OCFY10.29%
SpS54.11
BVpS44.47
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.41
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 2.96
F-Score7
WACC7.15%
ROIC/WACC1.77
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-10.85%
Revenue Next 2Y-5.39%
Revenue Next 3Y-2.91%
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.